(As of 7:10am, PST)
Oil appears to have more market moving power than the
beginning of earnings season. After a dismal earnings report from Alcoa after
the closing bell yesterday, stocks have opened today in positive territory
tracking with another oil rally. All of the major indices closed negative
yesterday in anticipation of what many believe will be a difficult earnings
season. Alcoa posted a 92% drop in profit and lowered its 2016 outlook for the
aerospace market. Its shares are off over 4% in early trading. Alcoa’s report
may be a trend for this earnings season. Many experts are predicting that this
could be the worst earnings season in years. However, at the moment, it doesn’t
seem to be affecting the markets. Reports continue today with wholesale
distributor Fastenal Co. and retailer Perry Ellis International Inc. reporting
later in the session. Oil continues its rise in anticipation that oil producers
will agree on a production freeze when they meet this weekend. Today it is up
nearly 1% to $40.74 per barrel. The import price index for March was the main
piece of economic news today. The report revealed a 4.9% increase in import
fuel prices in March which helped drive a 0.2% increase in the price index for
U.S. imports. That is the first monthly increase since June of 2015. Export
prices meanwhile declined for the third straight month. Most of the European
and Asian indices are trading in positive territory while gold is also trading
in the green.
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