Thursday, March 24, 2016

Economic Journal - Thursday, 3/24/2016

(As of 7:20 am PST)

Falling oil prices are continuing to weigh on stocks early Thursday as the main US benchmarks opened lower for the third consecutive session putting them on track to snap a five-week winning streak. Disappointing economic data added to the gloomy picture Thursday sending investors scurrying to the sidelines ahead of the long Easter holiday weekend. US orders for durable goods fell 2.8% in February following a 4.9% increase in January marking the third decline in four months. The decline was mostly in line with expectations but sparked concern over the impacts that a weak global economy and tumbling oil prices are having on the US manufacturing sector. All major industrial sectors except for automakers showed declines. Core capital goods, which excludes the volatile energy and transportation sectors, declined 1.8% marking the second drop in three months. Other data out today showed jobless claims rose slightly in the prior week. On the global scene, Asian markets finished Thursday’s trading in the red, while European stocks headed toward a negative close as investors remained risk averse after the terror attacks in Brussels earlier this week. Oil prices are down over 2% today sending shares of energy companies tumbling and dragging the broad market lower. Interest rates are down slightly. Expect a quiet afternoon as traders head out for a long holiday weekend. As a reminder, the stock market will be closed tomorrow in observance of Good Friday, but will be open again on Monday.

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