Thursday, October 22, 2015

Economic Journal - Thursday, 10/22/2015

(As of 7:25 am PST)

US markets are rallying today after two consecutive days of mild losses, as investors sifted through a deluge of earnings reports as well as digested fresh comments from European Central Bank President Mario Draghi, that the central bank stands ready to provide additional stimulus measures to the fledgling European economy. European markets are leading the charge higher with the broad indexes up over 2% heading into the final hour of trade. US investors traded the European news higher prior to the opening bell, while mixed earnings seemed to be overlooked in light of the European stimulus announcement. An upbeat earnings report from McDonald’s provided some lift early, however mixed reports from 3M, Under Armour and Caterpillar could weigh on the indexes as the day wears on. Some big names reporting after the bell today include Amazon, Pandora, AT&T, Microsoft, and Google’s spinoff Alphabet Inc. The anticipation of these reports may influence late day trading as investors jockey to adjust positions ahead of those reports. Economic data is light today, although a report on jobless claims showed the 4-week average of claims falling to a near 40 year low. Oil prices are up 1% to just under $46 per barrel, while gold is trading flat on the day. Interest rates are flat with the 10 yr. treasury yield hovering around 2.00%. It’s nice to see a strong rally early on today, but it wouldn’t be a surprise to see gains dissipate as the day wears on.

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