Tuesday, March 15, 2016

Economic Journal - Tuesday, 3/15/2016

(as of 7:15 AM PST)

Most asset categories are down this morning in what looks like a day of consolidation and profit taking after big run-ups for investment indices and oil over the last month.  It is a broad sell-off with no assets left behind as investors are shunning risk this morning.  If not for a strong showing by Apple, based on a significant upgrade, markets would be much deeper in the red than the general half percent decline showing thus far. Much of the negative sentiment stems from the oil patch with a consensus of a freeze or lowering of oil production appearing much more difficult to achieve than previously thought.  International markets, oil markets, commodity markets are all feeling the pinch.  US economic data is not helping.  Retail sales for February were anemic and January sales were revised lower.  Business inventories were at a post recession high, further reflecting consumer weakness.  On the positive side, the Empire manufacturing index was a surprise gainer, reversing last months big negative number, hopefully a sign that the US economic recovery continues despite shaky, sometimes inconsistent numbers.  Some buying interest appears to be stemming the initial declines, but negative sentiment appears likely to rule the day.

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