Tuesday, May 10, 2016

Economic Journal - Tuesday, 5/10/2016

(As of 7:25am, PST)

U.S. Stocks are headed in a positive direction this morning riding an uptick in oil and responding to some developments overseas. Currently the Dow is up over 150 points and the S&P500 is trading up nearly 15 points. Oil and the energy sector are giving the markets some momentum due to relief in the oversupply from outages in Canada and Nigeria. The wildfires in Canada have reduced production by nearly 1.6 million barrels a day which in turn is pushing oil prices higher. Economic news from China overnight was better than the disappointing trade news that pushed the markets around the world lower yesterday. China’s inflation data was reassuring because it didn’t get worse. The Consumer Price Index remained unchanged year-over-year in April and the Producer Price Index in April compared favorably to the decline that was seen in March. This news turned the tide for the Asian markets overnight which were dismal coming out the weekend. In Europe, a group met to discuss the Greece bailout and the news is that there may be hope of some debt relief for Greece. All of the major markets in Europe are currently trading in positive territory. The earnings season is winding down and investors don’t seem to be paying much attention to the results at the moment. The results yesterday were mixed with Gap reporting a miss along with an impressive report from Hertz Global. 

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