Tuesday, November 3, 2015

Economic Journal - Tuesday, 11/3/2015

(As of 7:00 am PST)

U.S. stocks opened the day flat after a stellar day yesterday. On Monday, markets brushed off weak manufacturing data while responding to positive earnings reports with a strong surge higher. Yesterday’s rally pushed the Dow into positive territory for the year while the S&P 500 hit its highest level since August which almost seems impossible given the recent doom and gloom days of summer. Today could see some pullback and profit taking if the early trading is any indicator of what lies ahead. Market drivers on the reporting front are Sprint whose shares fell 9% in premarket after reporting a larger loss than expected. Conversely American Eagle Outfitters gained 7% after its earnings forecast was better than the previous quarter. Earnings reporting will be winding down the balance of the week. Economic news is light today with a report on September factory orders due out later this morning followed by a report on auto sales later this afternoon. International markets were mixed with Asia participating in some of yesterday’s rally on Wall Street, while Europe is down slightly ahead of a speech from ECB President Mario Draghi. Gold is down another 1% today, while oil is up over 1%.

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