Tuesday, January 26, 2016

Economic Journal - Tuesday, 1/26/2016

(As of 7:10 am PST)

US stock futures see-sawed premarket with momentum eventually swinging to the upside after a dramatic swing in oil prices overnight. Crude oil, which was on the decline earlier this morning is now trading slightly above $30 per barrel after reports that OPEC and non-OPEC members were considering production cuts to shore up supply issues and hopefully bring stabilization to prices. The turnaround in oil early this morning helped US stocks avoid facing sharp declines at the open as investors traded down an ugly close for Asian markets. The Chinese Shanghai composite index suffered its worst one day loss since the government removed its circuit breaker mechanism earlier this year. The Shanghai index was down 6.4% on the day. Economic data has been light today but mostly positive helping to sustain early gains. The November reading of the S&P/Case-Shiller home price index showed prices rising at their fastest pace in 16 months. Additionally, a report on consumer confidence in January beat expectations. Upbeat earnings reports are adding to today’s early upside bias. Reports form Proctor & Gamble, Johnson & Johnson, 3M, DuPont and Sprint all topped analysts’ expectations.  Apple Inc. will be under the spotlight later this afternoon as the iPhone maker gets set to report quarterly earnings after the bell today. Lastly, today begins the first day of the FOMC’s two day policy setting meeting with a statement due out Wednesday afternoon. Expect volatility to remain high throughout the week on the regular concerns over oil, China and central bank maneuvering. 

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