Monday, May 2, 2016

Economic Journal - Monday, 5/2/2016

(As of 7:25 am PST)

It’s a new month and a new week and investors are hoping there will be new life in the markets after last week’s sell-off. The month of April closed out with the Dow and S&P500 slightly up for the month while the Nasdaq Composite was down due to weaker than expected earnings from Apple and Intel. This week will feature some second-tier earnings reports along with some important economic data. The big economic news will come at the end of the week with a report on the April jobs data. Already out today is a gauge of manufacturing activity for the month of April. The report showed activity to be below both the prior month and the projected consensus. The markets don’t seem to be having too much negative reaction to the report with both the Dow and S&P500 up slightly to start the day. It is a quiet day overseas with most Asian markets and the London market closed for a holiday. There will be interest in China tomorrow at the opening after a poor report over the weekend showed weakness in China’s manufacturing activity. Oil is under some pressure this morning after several days of run up prices. Gold is continuing to climb near new highs for the year. As we enter the month of May, it wouldn’t be a surprise to see some consolidation activity especially after the market’s spectacular run since mid-February.


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