Monday, February 29, 2016

Economic Journal - Monday, 2/29/2016



(As of 7:15am, PST)
 
As we head into the last trading session of February, the markets are trying to find some traction that could lead to the first positive month in 2016. As of Friday, the S&P500 is on track for a .4% gain for the month of February while the Dow Jones Industrial Average is on pace for near 1% gains. For a change of pace, oil isn’t the dominating factor impacting the markets today. The story that investors are digesting today is out of China. Overnight, the People’s Bank of China cut its reserve-requirement ratio for the nation’s banks. Although most of the Asian markets had already closed prior to the announcement, the S&P500 futures market reacted with a 17 point rally after the news. Nothing like a fresh stimulus package for the world’s second largest economy to wake up investors around the world. The big economic news this week is on Friday when the monthly jobs report is posted. The only economic data out today is the January reading of U.S. pending home sales and that report was mostly positive showing that sales were up 1.4% in January. Oil prices are up 1.5% today while gold and other precious metals are also higher.

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