Tuesday, February 9, 2016

Economci Journal - Tuesday, 2/9/2016

(As of 7:25am, PST)



For the third consecutive day markets have kicked off the trading day in the red, but the damage today seems minor compared to the past three sessions. Currently the Dow is down 24 points and the S&P500 is off by 2 points. Yesterday was a wild ride with the Dow at one point nearing losses of 400 points, but buyers came back in the afternoon and staged a rally that minimized the damage. The same old story continues today with stocks following oil prices and investors’ concerns of a slowdown in the global economy. All eyes are fixed on Wednesday when Fed Chairwoman Yellen testifies before the House and Senate committees for her semiannual report. Any sense from Yellen that the Fed acted too early in December when they raised interest rates will have an effect on the markets.  The lone economic report today is on U.S. job openings and the news was positive with a jump in openings from November to December. Earnings season continues and reports are mixed. Coca-Cola reported revenue above expectations but per-share earnings of 28 cents were below Wall Street’s forecast of 37 cents. Coke shares dropped in low volume after the report. European stocks limped into the close with slumping bank stocks leading the downward spiral. Interest rates are up slightly while commodity prices and the US dollar are down.

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