Wednesday, March 2, 2016

Economic Journal - Wednesday, 3/2/2016


(As of 7/15am, PST)
 
It was a super Tuesday in more ways than one yesterday. Yes, there were primaries in several states where Trump and Clinton extended their leads but it was also a super Tuesday in the markets as the major indices posted single session gains of over 2%, reaching their highest levels in nearly two months. So what were the factors that made Tuesday so super? There were some economic reports that came out yesterday that showed signs that the U.S. economy was improving. The troubled manufacturing sector rose last month to its best reading since September. Additionally, there was an increase in U.S auto sales and U.S. construction spending rose in January. It also didn’t hurt that oil prices have surged 30% since February 11. So how is super Tuesday translating into Wednesday? So far, Wednesday isn’t looking so super. In early trading, both the Dow and S&P500 are trading modestly lower. Today the news affecting the markets is mixed. Oil is down once again on concerns of surplus supply. Later today, the Department of Energy puts out its weekly inventory report. A strong employment report was released earlier today showing that 214,000 jobs were added to private sector payrolls. Europe and Asia overnight posted impressive gains. Today, it appears that the markets are taking a breather after yesterday’s impressive rally.

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