Thursday, May 12, 2016

Economic Journal - Thursday, 5/12/2016

(As of 7:10 am, PST)

On Wednesday the markets gave back most of their Tuesday gains on disappointing earnings reports from retailers which are often a barometer of consumer confidence. Both the Dow and the S&P500 closed out yesterday near the same level that they opened on Monday. The seesaw trend for the week continues today with the markets opening in positive territory. Holding investors’ attention today are rising oil prices following an International Energy Agency report that global demand was better than expected in the first quarter. Oil is currently nearing $47 per barrel which is boosting energy stock shares. There was some disappointing news on the labor front today with initial weekly jobless claims reaching a 14 month high of 290,000. The claims data may be pushing the markets higher on the belief that this adds to the continuing storyline of slowed economic growth which may keep the Fed more dovish when they meet in June to decide on interest rates. More Fed interest will continue as the day rolls on with three Fed officials scheduled to speak at various locations around the world today. Markets in Asia and Europe were mixed overnight. Gold and silver continue to trade in positive territory.


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