(As of 7:05 am, PST)
In the early going on this
Monday morning, the markets are shrugging off disappointing economic news here
at home and around the world and are trying to kick off this new week with some
positive results. Currently, the Dow is up 57 points and the S&P500 is
trying to avoid a fourth consecutive losing session trading up 6.5 points. The
bad news in the U.S. came from the Empire State general business-conditions
index which revealed a sharp decline from this month to last month. In April,
the reading was a positive 9.6 and this month came in at -9. This weak showing
lends itself to the Fed staying put on raising rates next month. In China, the
economic news continues to disappoint. China’s industrial production and
investment readings came in below expectations for April. This news seemed to
weigh heavier on the European markets as they were mostly in the negative
overnight while the Asian markets are mostly positive. Oil is experiencing a
rally this morning after Goldman Sachs reported that the oversupplied market
has likely switched to a deficit. All of this news seems to be a backdrop for
investors with the main focus coming later in the week when the minutes from
the Federal Reserve’s April policy meeting will be released. There are no
noteworthy earnings reports this week. All eyes continue to be on market driver
Apple whose shares rose sharply this morning after an announcement that Warren
Buffet’s Berkshire Hathaway invested 9.8 million shares during the first
quarter. This shot in the arm for the largest market cap company may translate
to a shot in the arm for the rest of the markets.
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