Economic Journal - Wednesday, 6/24/2015

(As of 7:20 am PST)

Stocks opened to the downside Wednesday after two consecutive days of gains as news that Greece’s latest reform proposal was rejected by its creditors. European markets fell from the open and look set to finish the day with losses for the first time this week. Economic data is light once again today, however the final revision to Q1 GDP showed GDP contracting -0.2% in the first quarter. The final revision shows a smaller decline than previously forecasted reflecting higher consumer spending and a lower drop in exports compared to the initial readings. Markets seem to be ignoring the GDP report and focusing mostly on the Greece drama that continues to unfold. Asian markets finished Wednesday’s session mixed. Gold prices are slightly lower today while oil is inching higher ahead of a report on crude inventories. Interest rates are flat as is the US dollar.

Economic Journal - Tuesday, 6/23/2015

(As of 7:20 am PST)

US stocks inched higher Tuesday as investors sifted through a busy data calendar while also cheering on prospects of a Greek debt deal later this week. Stocks rose on Monday after Greek officials submitted new reform proposals to its creditors that appeared to be a positive step in the right direction after months of negotiating. European markets soared on the news Monday and are continuing to rally today on the Greece hopes as well as strong PMI and consumer confidence data throughout Europe. Speaking of data, the US calendar is full of reports today. Orders for durable goods fell 1.8% in May, more than expected, as demand for commercial aircrafts slowed. A report on US home sales showed sales for new single-family homes rose 2.2% in May to an annual rate of 546,000, hitting the fastest pace since 2008. Data in the US remains strong supporting the Fed’s path toward a rate hike later this year. In other news today, Asian stocks finished higher with shares on China’s Shanghai composite index recovering after tumbling nearly 5% earlier Tuesday. Oil is down 1% today while gold is also down slightly. Interest rates are climbing as is the US dollar.

Economic Journal - Monday, 6/22/2015

(as of 7:10 AM PST)

 

Existing home sales came in strong this morning adding fuel to a hot market that started with reports that a Greek financial deal is near.  The Dow is up triple digits and other indexes a like amount.  It looks to be a quiet week with all eyes focusing on Europe and the tense negotiations over a Greek bailout.  Interest rate yields are up in anticipation of a Federal Reserve rate hike in the next few months.  Merger activity in the health care sector is adding to positive momentum. Gold is down moderately while oil is off fractionally, but near flat line.  Expect volatility to be high with Greece being the main focus all week.

Economic Journal - Friday, 6/19/2015

(As of 7:15 am PST)

It’s a very quiet day for markets today. US stocks opened near the unchanged line and are mildly lower in the early going. With an empty economic data calendar today, investors turned to the drama that continues to unfold in the Greek debt negotiations. Lack of progress in the negotiations this week has led to an emergency summit on Monday, just days ahead of an already scheduled EU leaders meeting. The European Central Bank on Friday approved an emergency lending program to Greece’s banking system as cash withdrawals out of Greek banks continued to increase. Monday’s meeting will be an important day for Greece and its creditors as they look to find a solution to Greece’s debt crisis before time runs out. In other markets, most Asian indexes finished higher Friday despite a record pummeling on the Chinese Shanghai composite index. Chinese stocks finished down 6.4% Friday, for losses of 13.3% on the week. It was the worst week in more than seven years for China as high valuations and record levels of margin debt have investors worried over China’s ability to maintain this pace of growth. Gold is higher today while oil is down slightly. Interest rates are down while the US dollar index increased slightly.

Economic Journal - Thursday, 6/18/2015

(as of 7:15 AM PST)

 

It's a great day so far on US markets.  Positive economic news coupled with what appears to be a dovish approach to interest rate rises by the Federal Reserve has stocks on the plus side, at least for US markets that is.  Spotty data from Asia has most markets down moderately and Europe continues to feel the sting of Greek financial negotiations, which seem to be going nowhere.  Precious metals are up big with easy money continuing on the horizon while oil is bucking the trend, amid a glut of supply that just keeps getting bigger.  Jobless claims were down to fifteen year lows in the US, while economic indicators were strong.  It seems that Fed Chair Janet Yellen did a phenomenal job of explaining interest rate scenarios, turning what might have been a big blow to investors into a strong positive.  Positive jawboning coupled with a mild schedule of rate increases has turned into a good positive momentum play for investors as optimism abounds.