Tuesday, May 17, 2016

Economic Journal - Tuesday, 5/17/2016

(As of 7:15 am PST)

Markets are giving back some of yesterday’s gains after economic data on inflation and the housing market recovery caused some market participants to begin fretting over a Fed rate increase. Consumer prices jumped in April to their highest level in more than three years stirring up debate today about the Fed’s path towards its next rate increase. Reports on the housing market were also positive. Housing starts rose in April more than expected, while building permits (a sign of future demand) also ticked higher indicating the housing market remains strong. Oil prices have cooled a bit after surging yesterday but continue to trade over $47 per barrel. Apple Inc. is also trading flat today after rallying over 3% yesterday on news that Warren Buffet’s Berkshire Hathaway purchased 9.8 million shares in the first quarter. The stock, which has struggled of late, helped lead a tech rally that sent the Nasdaq and the other major benchmarks soaring yesterday. It’s a quiet news day on the international scene. Asian markets finished the day mostly higher while European stocks look set to close with modest losses. Precious metals are up while the dollar index is down slightly.

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