Thursday, June 2, 2016

Economic Journal - Thursday, 6/2/2016

(As of 7:05am, PST)

It looks like we may be back to the trend of where oil goes, so go the markets. The markets are all down this morning following a slide in oil prices. All of this after a volatile day yesterday which saw the Dow slipping to a triple digit loss in the early going and closing the day slightly in the green. The oil slide today is due to an announcement by OPEC that there will be no change in crude output. Consequently, energy stocks are taking a beating in the early going. Investors will continue to have their eyes focused on oil as OPEC continues meeting through the rest of the week. The labor market continues to look strong with the ADP Employment Change report showing an increase in private sector jobs close to expectations and a revised number for April that was better than expected. Unemployment continues to improve and marked its 65th straight week where initial claims have been below 300,000. These healthy labor reports are all in line with the Fed targets and point to interest rate increases as the year rolls on. All eyes will be on the nonfarm payroll reports which are due out Friday. In news around the world, the ECB left its key lending rates unchanged as expected. All of the European indices are in the red at the moment while results in Asia are mixed

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