Thursday, September 10, 2015

Economic Journal - Thursday, 9/10/2015



(As of 7:05 am PST)

Stock futures traded down ahead of the open Thursday as investors sorted through mixed economic data while charting their course ahead of next week’s FOMC policy meeting. Indexes have turned around and now are trading modestly higher in the first hour of trading. US trade data showed import and export prices falling sharply in August due to the drop in oil prices and the strengthening of the US dollar. Falling import prices (a sign of weak inflationary pressure) is something the Fed is keeping its eye on as a part of its decision to raise interest rates. In other economic news, jobless claims fell 6,000 last week to 275,000 – mostly in line with expectations. Recently strong labor market data is being considered heavily by the Fed and may lead to a rate hike next week. In corporate news, shares of Apple recovered some of yesterday’s losses after the tech-giant rolled out a new product line yesterday which included a business-designed iPad Pro along with a new lineup of iPhones and an updated Apple TV. The product display was not met with the kind of enthusiasm Apple is used to seeing with the stock losing 1.9% on the day yesterday. In overseas action, Asian markets finished mostly lower after a strong showing yesterday while European stocks look poised to finish to the downside as well. Gold and oil prices are up slightly today while interest rates are flat with the 10 yr. treasury yield hovering around 2.20%.

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