(As of 7:30 am pacific)
Stocks rallied back as the risk trade appears to be on
after a rough day yesterday. The markets
never could fully recover yesterday after disappointment set in over remarks
made (or lack of) by European Central Bank President Mario Draghi. Investors were hoping the central banker
would have provided more specific details on measures to aid in the debt
crisis, but were left with seemingly more questions and frustration. The markets turned red and never could fully
recover. Today is a different story
however, as US economic reports seemed to provide confidence to investors
looking for any sort of good news. US
nonfarm payrolls were better than expected with the economy adding 163,000 jobs
in July, however the unemployment rate
ticked up slightly, perhaps due to some seasonal oddities. Another report showed that activity in the
services sector picked up slightly in July, better than expectations. News
is quiet in Europe today with rumors coming out of Spain that the government
may soon request aid from the ECB’s rescue funds. Stocks are surging throughout most of Europe.
Commodities are higher today with oil up over 4% and gold up as well. The dollar is down and interest rates are
drifting higher. Volatility is low in
early trading as the market has so far greeted both of these reports with
optimism after a week filled with negative news. If we’re able to hold these levels today, the
S&P will end flat for the week.
