(As of 7:05 am PST)
US
stock prices opened slightly lower following yesterday’s surprise rally which
resulted in every US sector finishing with at least 1% gains on the day. A
rally in oil prices yesterday helped lift stocks into the close, while
investors also welcomed the optimism not expected in Monday’s session following
the tragedy that unfolded in Paris over the weekend. Tuesday’s open reflects
the feeling that perhaps yesterday’s buying was a bit overdone. Data is light
this morning, although October’s Consumer Price Index showed prices increased
0.2% in October, in line with expectations. Core CPI, which excludes the
volatile food and energy sectors, also increased 0.2%. The CPI data is good
enough to keep a December rate hike on the table, which is perhaps another
reason the market opened to the downside this morning. A report on industrial
production showed production declining just slightly in October while capacity
utilization came in as expected. Overseas, Asian markets finished mostly higher
following yesterday’s rally on Wall Street, while shares of European stocks are
also looking to a strong close as European investors bet on the ECB loosening
up its monetary policy. Oil is giving back a good part of yesterday’s gains,
trading slightly below $41 per barrel while gold is also down in the early
going. Interest rates are inching higher today.
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