Could be an Exciting Day Ahead
By: Tim McPartland,
After a day or 2 of relative calm the equity markets went back to big moves–but at least it was up. Looking at current corporate earnings and many of the current economic releases it would seem that up is the way to go. Looking out 6 months one has to be leery of the economic outlook, but one must roll with the markets since none of us is smart enough to see the future clearly.
It is kind of interesting to watch the released consumer confidence numbers go higher and higher–it would seem to us that gasoline prices at the pump have an outsized affect on peoples outlooks. With wages totally stagnant maybe folks are simply grateful for any crumbs tossed their way.
Today we have the Fed statement released midday–and almost undoubtably stocks and interest rates will move sharply (at least for 15 minutes or so after the release)–we find this all as worthless noise, but just the same it happens so one just as well expect it.
1 item that could move a part of the equity markets this morning is the EIA petroleum inventory release at 10:30 am eastern. We have had 2 weeks in a row of huge builds and any surprisingly large build (over 5 million barrels) could turn the oil markets upside down. At this moment crude prices are up about a buck–to the $82.50 area–safely above the key $80 area.