(As of 7:10 am PST)
US
stocks are falling hard at the open following a large drop in oil prices for the second consecutive day. Markets climbed their way back to the unchanged
line yesterday, fighting off a slide in oil at the opening bell. Comments from
Federal Reserve Vice Chair Stanley Fischer that the Fed would not likely
aggressively raise rates this year, helped to comfort markets and lift them to a
partial recovery. Without the Fed today, markets look hard pressed to recover
from early morning declines. Oil prices dipped back below $30 per barrel
Tuesday, with prices tumbling over 5% for the second consecutive day.
International markets aren't providing much relief despite a rally on China’s
Shanghai exchange after China’s central bank injected more liquidity into the
system Tuesday. European markets were hit hard from the opening bell with a
broad based selloff coming on the heels of tumbling oil prices and global
instability. Economic data is light today with a report on auto sales due out
later this morning. In earnings related news, shares of Alphabet Inc. (Google’s
parent company) climbed 5% after reporting stronger than expected earnings
yesterday. Alphabet’s rally yesterday afternoon pushed its market
capitalization above Apple’s for the first time, making the company the most
valuable in the world. Gold prices are flat today while the rate on the 10 yr.
treasury fell to 1.88% as investors sought its perceived safety.
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