(As of 7:25am, PST)
U.S. stocks have opened lower today after ending a seven
session rally yesterday following the tragic news of yet another terrorist
strike in Europe. Investors appear to be cautious following the news from
Brussels but the culprit for today’s pullback is once again oil. In the early
going, oil is down almost 2% and all of the major indices are following suit.
Oil’s drop is being fueled by a report from the American Petroleum Institute
report that showed an 8.8 million barrel build in crude inventories stirring up
concerns of a supply glut. On a positive note, the New Home Sales report
for February was just released and it contained some signs that there is still
life in the housing market. New home sales hit their highest level since December.
The median sales price in February was $301,400 which was up 6.2% compared to
January. Stocks to keep an eye on today are Nike and Krispy Kreme. Nike is off
nearly 5% today after a report yesterday revealed that their revenue fell short
of expectations. Krispy Kreme shares were down 9% following a report of
weaker-than-expected revenue growth during the holiday quarter. Investors will
have a lot to chew on in the coming weeks as earnings season gets underway. The
global markets showed some resiliency overnight despite the tragedy in Belgium
with Asian and European markets only down modestly. Gold prices are down today
as are interest rates.
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