(As of 7:15 am PST)
Markets are looking to recover
from yesterday’s selloff and put an end to a two day selloff. A rebound in oil
prices above the key level of $30 per barrel helped to lift stock prices early,
but gains appear to be collapsing as the morning wears on. Economic data is
light today, but a report on private sector job growth from ADP showed the
private sector added 205,000 jobs in January, better than expected. December
jobs were revised higher as well from 257,000 to 267,000. The ADP report is a
precursor to Friday’s non-farm payrolls report which economists consider much
more of a reliable and accurate picture of labor market growth. Stock gains
dissipated after the ISM Services report dropped to the lowest level since
February 2014, with activity in the services sector growing but at a much
slower pace than expected. Today’s batch of earnings aren’t providing much lift
to markets either. Reports from Yahoo!, Merck, and Chipotle all missed on
earnings or sales expectations. International markets are on the decline
Wednesday as well, with Japan’s Nikkei leading the selloff with losses of -3%
on the day. European indexes are being led lower by losses in bank stocks. Gold
is up slightly while interest rates continue to fall.
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