(As of 7:20 am PST)
Markets teetered at the open as investors awaited data on
home sales and later in the day speeches from two Federal Reserve
presidents. At 7 am PST, the government
released data that showed new-home sales rose 9.6% in January, the fastest pace
in 5 years and a surprise to most economists.
December sales were upwardly revised as well adding to the strength of
the report. Headwinds such as rising mortgage rates and unusually cold weather
have not impacted the recovery like many thought. Markets reacted positively to
the report but have since come back off their early morning highs and remain in
a choppy trade. In other news, virtual
currency Bitcoin continues to claim headlines after the sudden and unexpected closure
of one the currencies largest exchanges, Mt. Gox, earlier this week. The recent drama has called into question the
viability of the currency as a long-term alternative to government issued
currencies. Asian markets finished the
day mixed, while Europe is lower. Gold
has shed $11/oz. to $1332 while oil prices are inching higher. The 10 yr. treasury yield has dipped below
2.7% while the US dollar index is up. As
the S&P500 flirts with another record close, it remains to be seen how long
this February rally will last.
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