Tuesday, April 12, 2016

Economic Journal - Tuesday, 4/12/16

(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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