(As of 7:05 am PST)
US
stocks opened to the upside this morning after a down day yesterday which saw
the Dow finish with 1% losses as a weak forecast from Wal-Mart Stores pulled
down the blue-chip index. Today’s positive momentum began overnight in Asia as
Chinese markets led the way with 2% gains. News of reform plans, a potential
merger deal between two large Chinese shipping companies, and rumors of future
stimulus supported the Chinese stock market rally which sustained itself most
of the day. The buying continued into the European open with most indexes
tracking toward 1% gains on the day. Economic data in the US is mixed today.
Jobless claims fell 7,000 last week to 255,000 marking the lowest level since
1973 as less people applied for unemployment benefits. The monthly average for
claims fell to 265,000, also a multi-year low. The consumer price index fell -0.2%
in September, matching expectations, as a further drop in gasoline prices led
the decline. Excluding the volatile food and energy sectors, “core” CPI rose
0.2%. Lastly a report on manufacturing activity in the New York region, showed
activity contracting in October, but at a slower pace than last month. In other
economic news, several Federal speakers will be hitting the microphones today throughout
the country as investors will be watching closely for any comments or clues as
to the timing of the Fed’s interest rate hike. Earnings continue to trickle in
today, with reports from Netflix and Goldman Sachs coming up short of
expectations while Citigroup and United HealthCare beat estimates. There’s a
lot going on today it seems, with plenty of positive and negative news that could
keep us in a tight back and forth range for awhile.
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