(as of 7:00 AM PST)
Stocks are down to start the week. It's hard to find a good reason because economic news is fairly light across the globe today. One gets the feeling that investors see an opportunity to take profits after a remarkable ten week rally. Oil is up along with precious metals, probably because the US dollar is down against most major currencies. Interest rates, while still very low, are showing some signs of upward pressure. The Federal Reserve Open Market Committee (FOMC) meets this week and while no interest rate increases are expected, it is only a matter of time (probably July) until we see another bump in rates. It is a busy week for earnings, with 1/3rd of the S&P 500 stocks reporting. The market is likely to sway based on the direction of corporate reports this week. Apple and Amazon are two of the key players to watch. Thus far profits have dropped by 7.9% for companies reporting, which is above analyst expectations of a 9% drop, but still fairly ugly, so it would not surprise to see investors take money off the table.
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