Thursday, October 8, 2015

Economic Journal - Thursday, 10/8/2015



(As of 7:15 am PST)

Markets are down to start Thursday’s session, as the Dow Jones Industrial Average looked to snap a four day winning streak. There’s little data out today to influence the morning’s selling pressure. What we’re likely seeing is some profit taking and consolidation activity after the recent run-up in stocks. International markets opened mixed with Asian stocks mostly down on the day, although China’s Shanghai index bucked the trend, finishing up nearly 3% after a five session holiday. Believe it or not, that was a disappointment for overseas investors, as many expected the Chinese markets to rally further to keep pace with the gains in global markets over the past several days. European markets are up slightly heading into the final hour of trading. As mentioned previously, economic data is light today, although a report on jobless claims showed the number of people filing for unemployment benefits fell 13,000 to 263,000 last week – the lowest level since mid-July. Later this afternoon the Fed will release the minutes of its recent September FOMC meeting. Investors will be looking for clues as to why the central bank decided to delay its interest-rate hike and also what the Fed’s outlook is for the remainder of 2016. Lastly, the unofficial kickoff of Q3 earnings season begins after the closing bell today, as aluminum-maker Alcoa gets set to announce their earnings. An upside surprise would be a nice way to start what otherwise is expected to be one of the weakest earnings seasons in years.

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