(as of 7:20 am, PST)
Stocks seem to be cooling off after a two day run that
saw the Dow post gains of 359 points and the S&P500 notching its highest
close since April 27. Sellers seem to be dominating the early trading today as
all of the major indices have opened in the red. There has been some good economic news out
the last couple of days that could keep the rally going as the day goes on. Orders
for durable goods rose in April led by a higher demand for new cars, trucks and
commercial jets and the labor market continues to be strong as a report on weekly
jobless claims fell to a one-month low. There was a drop in business spending that
may be a cause for concern suggesting that the manufacturing sector may not be
as robust as analysts would like to see. Oil continues to be a market driver
during this rally as it topped $50 per barrel for the first time in six months.
The gains yesterday and today are being fueled by a report released by the U.S.
Department of Energy on Wednesday which showed a 4.2 million barrel reduction
in oil inventories. Experts had expected a drop but nothing near that level. Investors
are still digesting the last of the earnings reports and the results today have
been mixed from companies like HP, Inc. and Costco. Asia has continued to
follow the lead of the U.S. markets with most indices trading in the green
overnight with the European indices mixed.
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