(As of 7:15 am PST)
Coming off of a stellar day
yesterday which saw both the Dow and S&P500 push toward positive numbers
for the year, the markets opened trading this morning by giving back some of
those gains. Once again the culprit in this thinly traded holiday week is oil.
After rebounding yesterday, oil is reeling today following an American
Petroleum Institute estimate late Tuesday that there was an increase in
supplies last week. Adding to the downward pressure on oil prices today was a
statement from Saudi Arabian’s oil minister “that the country no longer limits
oil production and stands ready to meet any rise in demand for crude.” Without
a lot of other economic news scheduled to be reported today and tomorrow, oil
will dominate investors thought process as we head into the final two trading
days of 2015. There are a couple of reports due out later this morning that
could move the needle. The first is the Pending Home Sales report followed by a
report on Crude Inventories. Don’t expect either of those reports to reverse
today’s downward trend.
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