(As of 7:20 am pacific)
Caution prevails as news is
light out of Europe, but one can’t help but feel that investors still have
Europe on their mind. The German bond
was downgraded yesterday after the market close. Earnings reports are heavy today, and should have
the say as to whether we move back into a more positive mood. So far earnings are mixed with nothing to
write home about. Oil and gold are up
slightly while most commodities are down and the dollar is mixed against other
currencies. Longer term interest rates
continue a downward trend as short term rates rise slightly, probably the
continuing influence of ‘Operation Twist’. Volatility has dampened from
yesterday. A flash PMI figure, which is
a measure of manufacturing activity was at its lowest since December of 2010,
another in a disturbing trend of weakening economic activity reports in the US.
I suspect that earnings reports will turn more positive as the day
progresses and that we end with a slight gain while we wait for more direction
from Europe.
