Tuesday, May 26, 2015

Economic Journal - Tuesday, 5/26/2015



(As of 7:25 am PST)

US equities are lower to start this holiday shortened week as investors waded through a busy economic data calendar Tuesday. A report on durable goods orders sent stock futures lower early this morning. The headline number showed US orders for durable goods falling 0.5% in April, in line with expectations. However, orders for core capital goods, a representation of business investment, climbed 1% marking the second straight monthly gain. A report on new home sales showed sales rising better than expected in April, bouncing back after March’s sharp decline. Consumer confidence also showed a slight increase in May, enough however to beat consensus estimates. The positive data all around this morning is putting pressure on stocks which began to weaken Friday on a stronger-than-expected inflation report. The positive economic data recently has been received as negative news for stocks as investors remain worried about the Federal Reserve raising interest rates as the economy improves. It seems like we’re back in the “good news-bad news” trade for now, as the Fed’s first rate move remains data dependent. In other news across the globe, Asian markets finished mixed while European stocks are trending lower as investors continued to track developments in the Greek bailout situation. Gold and oil prices are both down 1% this morning, while interest rates are nudging higher. After a long weekend and a low volume week last week, traders are back and Tuesday looks like it’s shaping up to be a busy day.

No comments: