(As of 7am PST)
The markets are poised for a bounce back after the
holiday weekend and after the worst 10 session start to a year ever. In early
trading this morning, both the Dow and S&P500 are pushing gains of close to
1%. Don’t get too excited however, because if the past few sessions are any
indication, it’s not the opening that matters but how the market closes. Early
gains have generally disappeared in this recent downturn. The catalyst for
today’s optimism could mostly be that investors are looking for a bounce back
from oversold conditions. There was some economic news out of China that wasn’t
overwhelmingly positive but the response has been favorable. GDP growth,
industrial production and retail sales were all lower than previous periods but
not any worse from a slowdown standpoint. That news combined with rumors of
potential stimulus from policy makers pushed the Asian markets into positive
territory overnight. Here in the U.S., earnings reports from a couple of big
players were all better than expected. Bank of America, Morgan Stanley and
UnitedHealth Group all topped analysts’ earnings expectations. Oil continues its
trek downward due to oversupply concerns and is currently trading south of $30
per barrel. There is very little economic reporting due out today with the NAHB
Housing Market Index due out in a few minutes.
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