(As of 7:15 am PST)
Wall Street opened down for
the fourth straight session Tuesday as investors remained cautious over the
prospects of a Federal Reserve rate hike later this year. Recent upbeat
economic data, including Friday’s non-farm payrolls report has strengthened the
case for a Fed rate hike sometime in 2015. The likeliness of a June hike has
faded but an autumn hike is certainly on the table which has investors
allocating capital in a more conservative manner heading into the summer
months. Volatility overseas is also adding to uncertainty on Wall Street.
Disappointing data out of China today led to a choppy session for Asian stocks.
In Europe, stocks were on pace to record their sixth straight session of
losses, the longest losing streak since December of last year. Worries over
Greece and a US interest rate hike have European investors skittish. Germany’s
DAX 30 index moved deeper into contractionary territory Tuesday, adding to the
selling pressure. Data at home is light once again today. A report on wholesale
inventories showed inventories rose 0.4% in April, while the JOLTS (Job
Openings and Labor Turnover Survey) report showed job openings rising to 5.38
million in April compared to March’s 5.11 million. Interest rates are climbing
today with the 10 yr. yield up to 2.45% while gold and oil prices are also
higher. Based on today’s open it looks like we could be in for another volatile
trading session.
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