Monday, June 13, 2016

Economic Journal - Monday, 6/13/2016

(As of 7:25am, PST)

After a weekend where we watched yet another horrific mass shooting take place in Orlando, investors are cautious this morning ahead of two key market moving events that will take place in the next couple of weeks. In early trading, the Dow is down 21 points and the S&P500 is nearly at breakeven. The big news this week is highlighted on Tuesday and Wednesday with central-bank meetings in the U.S. and Japan. Most experts expect that the Federal Reserve will leave interest rates unchanged due to recent weakness in several economic reports, however there will be interest in the Fed’s outlook for the balance of the year. The other event that investors are eyeing with great interest is in Europe where U.K. voters will decide if they will leave the European Union. Polling activity has grabbed a lot of attention as it continues to show uncertainty of the result. There isn’t any economic data out today but there has been some news on the corporate front. Microsoft announced that it will acquire LinkedIn in an all-cash deal valued at $26.2 billion. LinkedIn is currently trading up nearly 50% while Microsoft is down over 3%. Oil is has fallen below $50 per barrel while gold is up in the early going.

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