(as of 7:10 AM PST)
After marking the best single session showing in
nearly three months, can the equity markets avoid the recent trend of giving it
all back the next day? So far it looks favorable that the trend might shift as
both the Dow and S&P500 are showing impressive gains in early trading.
Yesterday ended with the Dow up 1.2% and the S&P500 up 1.4%. Investors seem
to be viewing the potential of an interest rate hike by the Fed in June is an
indication of a strong U.S. economy. Other factors that may be fueling this
surge are oil prices. Oil is approaching $50 per barrel on news from an
industry group that reported a larger decline in inventories than expected.
More oil data is due out at 7:30 PST when the Energy Information Administration
reports on petroleum inventories. Investors seem to be shrugging off a report
that revealed the nation’s trade deficit widened in April as imports increased
faster than exports. The recent shift toward equities has weighed heavy on gold
and the dollar. Both are lower today in early trading. In news around the
world, most Asian markets closed higher and European stocks are advancing.
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