All of the major indices finished in the Red again yesterday as concerns about rising interest rates are taking its toll on stocks. The Fed’s Uber-Dove Evans meanwhile tried to quell this idea in a speech overnight in Asia. He stated that short-term rates should remain low through 2015 with the current low inflation. Stock futures are encouraged by this as they are pointing to a modestly higher open. The Bears have taken control this week as each rally is met with broad-based selling, which could be a sign that the long-awaited market correction is near. Despite the weakness in equities, volatility fell slightly during Thursday’s session. The CBOE Volatility Index (VIX) was down by 2% as investors may be looking at China for stimulus for its sagging economy. Monday is also the last day of the quarter and recently we have seen stocks rally into these ‘Window Dressing’ events.
Treasuries are down modestly this morning but have shown solid demand this week as a ‘Risk-Off’ rotation has occurred. Yields have fallen despite comments that rates are going to be rising sooner than expected. European stocks are sharply higher led by Spain and Italy. Asian shares were mostly higher but China’s Shanghai Index was down moderately. Economic news is relatively light today but could have some impact on markets. Data is due on Personal Spending and Income and another read on Consumer Sentiment is also on tap.
Stock Stories:
Blackberry (BBRY) –The Keypad blues – The smartphone maker posts another loss this quarter but soundly beats analyst expectations on EPS. Revenue was light but the company reduced expenses far sooner than expected. The shares are up 6% ahead of the opening bell but the company is still losing market share on a quarterly basis.
