(As of 7:10 am PST)
Stocks
opened higher Monday with the broad indexes looking to get back on pace after
ending a five-week winning streak last Thursday. Rising oil prices had equity
investors in the buying mood early with oil rising above $40 briefly Monday
morning. A report early Monday showed a decline in active US oil rigs which
sent oil prices higher to start the week. Gains have slowly dissipated yet
hitting the key level of $40 per barrel was enough to kick start some early
buying activity. Economic data is keeping investors busy to start the week. A
report on inflation showed the PCE index rising just 1% year over year in
February, slightly below January’s 1.2% pace. The slowdown in inflation lends
itself to a slow path for rate hikes from the Fed in 2016. The Fed has made it clear
that it wants to see inflation rise near its 2% target before aggressively
moving to raise rates again. Other data this morning showed personal income and
spending rising by 0.2% and 0.1% respectively, in line with expectations. A
report on pending home sales showed pending sales rose 3.5% in February, much
better than expected. The international scene is quiet this morning. European
markets are closed Monday in observance of the Easter holiday while Asian
markets finished on a mixed note to kick off the week. Gold and precious metals
are down today while interest rates and the US dollar are down slightly. After
a holiday shortened week last week, expect volume to pick up this week as
investors move to take on positions ahead of earnings season which gets under
way in less than two weeks.
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