Tuesday, June 9, 2015

Economic Journal - Tuesday, 6/9/2015


(As of 7:15 am PST)


Wall Street opened down for the fourth straight session Tuesday as investors remained cautious over the prospects of a Federal Reserve rate hike later this year. Recent upbeat economic data, including Friday’s non-farm payrolls report has strengthened the case for a Fed rate hike sometime in 2015. The likeliness of a June hike has faded but an autumn hike is certainly on the table which has investors allocating capital in a more conservative manner heading into the summer months. Volatility overseas is also adding to uncertainty on Wall Street. Disappointing data out of China today led to a choppy session for Asian stocks. In Europe, stocks were on pace to record their sixth straight session of losses, the longest losing streak since December of last year. Worries over Greece and a US interest rate hike have European investors skittish. Germany’s DAX 30 index moved deeper into contractionary territory Tuesday, adding to the selling pressure. Data at home is light once again today. A report on wholesale inventories showed inventories rose 0.4% in April, while the JOLTS (Job Openings and Labor Turnover Survey) report showed job openings rising to 5.38 million in April compared to March’s 5.11 million. Interest rates are climbing today with the 10 yr. yield up to 2.45% while gold and oil prices are also higher. Based on today’s open it looks like we could be in for another volatile trading session.  

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