Thursday, March 12, 2015

Economic Journal - Thursday, 3/12/2015


(As of 7:20 am PST)


US stocks are rallying this morning after two straight days of selling, with the DJIA up 189 points in the early going. Investors are digging through a deluge of economic data this morning including a report on jobless claims which showed claims fell last week from a 10-month high of 325,000 in the prior week to 289,000 in the week ending March 1-7. Average monthly claims (a more stable data point) fell by 3,750 to 302,250, a good sign for the labor market. Other data showed US retail sales declined in February, marking the third straight month of declines. Bad winter weather and falling gas prices were the main causes for the drop in retail sales, with sharply lower sales at gas stations leading the sector lower. In company specific news, Intel is making headlines this morning after the chip-maker cast a downbeat forecast for its first quarter sales citing weaker demand for business desktop PC’s. In overseas action, European markets are mixed after rallying yesterday. The ECB in its first 3 days of its QE program, has purchased $10.3 billion in European bonds, sending the Euro lower and yields on European debt to record lows. In Asia, markets finished the day mostly higher.

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