Wednesday, December 30, 2015

Economic Journal - Wednesday, 12/30/2015

(As of 7:15 am PST)


Coming off of a stellar day yesterday which saw both the Dow and S&P500 push toward positive numbers for the year, the markets opened trading this morning by giving back some of those gains. Once again the culprit in this thinly traded holiday week is oil. After rebounding yesterday, oil is reeling today following an American Petroleum Institute estimate late Tuesday that there was an increase in supplies last week. Adding to the downward pressure on oil prices today was a statement from Saudi Arabian’s oil minister “that the country no longer limits oil production and stands ready to meet any rise in demand for crude.” Without a lot of other economic news scheduled to be reported today and tomorrow, oil will dominate investors thought process as we head into the final two trading days of 2015. There are a couple of reports due out later this morning that could move the needle. The first is the Pending Home Sales report followed by a report on Crude Inventories. Don’t expect either of those reports to reverse today’s downward trend.

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