The KUIK Morning Market Report for Thursday, February 4:
Markets are mixed.
Index Direction Change Units Time
Dow Down (42) points 16,291 7:09 AM
S&P500 Down -0.1% percent 1,910
Nasdaq Composite Down -0.3% percent 4,489
30 Year Treasury Up 2 Basis Points 2.72 Annual Yield
European Central Bank President Mario Draghi hit back at a warning from Germany’s Bundesbank that the ECB shouldn’t overreact to a sharp drop in oil prices, underlining his readiness to launch additional stimulus to shore up ultralow inflation. In a speech in Frankfurt, Draghi warned that central banks “cannot be relaxed” in the face shocks to commodity prices. He said “The longer inflation stays too low, the greater the risk that inflation does not return automatically to target.”
The Bank of England kept its key interest rate at a record low of 0.5% and made no changes to its $548 billion asset purchase program. Both decisions were widely expected, as the outlook for U.K. growth and inflation has been hurt by the slide in oil prices. The Monetary Policy Committee voted 9-0 to keep the key rate where it’s been since March 2009.
The productivity of U.S. businesses fell at a 3% annual pace in the fourth quarter, marking the biggest decline in almost two years. Employees put in more time on the job but output of goods and services barely rose. Output edged up a scant 0.1% while hours worked jumped 3.3%.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/draghi-warns-of-risk-of-not-acting-on-inflation-2016-02-04-54851538
http://www.marketwatch.com/story/bank-of-england-holds-key-rate-at-05-in-unanimous-decision-2016-02-04
http://www.marketwatch.com/story/us-productivity-sinks-3-in-fourth-quarter-2016-02-04
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