Monday, October 26, 2015

Economic Journal - Monday, 10/26/2015

(As of 7:15 am PST)

The markets open up the week rather flat in anticipation of a mid-week meeting of the Federal Open Market Committee as well as a full slate of earnings reports that will include Apple. Most experts don’t believe that the Fed will make a policy change so the meeting will likely not be as market moving as past meetings have. The continuation of earnings reporting will be the big story this week. Markets in Asia finished on a positive note in overnight trading after the announcement last week that the People’s Bank of China cut interest rates. It was the sixth rate cut in less than a year for China’s central bank, which has some investors more worried about the underlying economic problems China faces rather than the stimulus it continues to provide.  Economic data is light today with a report on new-home sales showing sales fell 11.5% in September – the lowest rate in 10 months. Oil is down 1% today while gold is up slightly. After four straight weeks of gains, it wouldn’t be a surprise to see some profit taking in the lead up to Wednesday’s Fed meeting.

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