Tuesday, April 19, 2016

Economic Journal - Tuesday, 4/19/2016

(As of 7:00 am PST)

The momentum trade is continuing into Tuesday’s action despite some disappointing economic data and a mixed bag of earnings reports. The Dow Jones Industrial Average pushed through a slow start Monday after major oil producers failed to agree on a production freeze, but the blue-chip index rallied late in the day to close above 18,000 for the first time since July. Disappointing after-market earnings announcements Monday from Netflix and IBM set the tone for a weak open Tuesday, but so far the market has overcome the bad news and looks like it wants to push higher again today. Data is light today with a report on housing starts slowing in March, while building permits (a sign of future demand) also slowed below the pace expected. International markets are providing some lift to investor confidence today. In Asia, there was green across the board, with the Japanese Nikkei leading all indexes with a 3.7% gain on a falling yen. In Europe, markets have been trading firmly higher all day with most country indexes set to finish with solid gains. Oil continues to trade solidly around $40 per barrel with traders bidding up the commodity on news of labor strikes in Kuwait. Gold is higher today, while silver prices are soaring on renewed interest from hedge funds and likely due to the weakening of the US dollar. Some big names are reporting earnings today. Johnson & Johnson reported an earnings beat as did UnitedHealth, while Goldman Sachs missed expectations on quarterly revenue. After the market, reports from Intel and Yahoo will be under the spotlight.

Note: Make sure to visit our updated website at www.millerfinancial.biz where you will also find our blog. The new website will give you easy access to our blog as well as enhanced tools such as financial calculators, appointment scheduler, access to our newsletter and links to other financial websites.

No comments: