(As of 7:00 am PST)
Positive
earnings reports have set the stage for a morning surge. Tesla Motors a darling of investors over the
last few months is soaring 15% after a beat on earnings and revenue. Tech company Groupon is also up
strongly. There is a sense of optimism
today for investors. Gold is up
slightly, while oil is down a bit. The
US dollar is falling against most currencies, propping up commodity prices.
Interest rates continue along a stable path and should continue to support the
surge in home sales and home prices.
Jobless claims are stabilizing at a positive range as well. Still
lurking, and likely to set a short ceiling on market gains, is the fact that
Fed tapering is likely to occur sooner than later. Volatility is likely to pick up as political
squabbling over the debt limit surfaces over the next couple of weeks. As earnings season winds down it seems that
the resulting void will to lead to profit taking and a mild correction.
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