(as of 7:10 AM PST)
Markets are on edge. More and more bearish articles are popping up over the financial media and they are clearly making investors nervous. Stocks are slightly to the positive but negative momentum is building. Analysts are all but ignoring the massive Eurobank bond buying program which is to start tomorrow. The bond buying program is a major stimulus effort on the part of the Eurobank to jumpstart the European economies, which are just now emerging from a long term recession. This European financial stimulus is actually bigger than what the Federal Reserve Bank was providing at its peak and would normally have investors salivating over the easy money to come. But as more and more financial experts switch from bullish to bearish prospects and 'bubble' talk accelerates the momentum continues to downshift. On the economic data front, jobless claims jumped to their highest level since May, while US productivity declined for the second straight quarter. Corporations are hiring more workers resulting in upward wage pressure, likely to impact corporate profits for the next couple of quarters. Gold and oil are both flat to start the day while interest rates are stable. Expect the ECB bond buying program to provide a temporary lift to markets for the next couple of days recovering losses from the prior two sessions.
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