- U.S. stocks fluctuated throughout the day as investors eye the rising tension in Iraq and positive manufacturing data.
- The tension overseas in Iraq and the rising violence seems to be rising and leaving a dent in oil prices as oil prices continue to increase and hurt US markets because of the possibility Iraq oil production can be scaled back. Rising oil prices has negative effects such as rising prices affect consumers and profits.
- Manufacturing data released earlier rose to 19.3 from 19.0 in May, versus expectations of a decline to 15.0.
- May industrial production rose 0.6% vs. the consensus 0.5%.
- Factory orders in the state hit a four-year high and inventories increased significantly, indicating that restocking will contribute to growth this quarter.
- The Dow Jones Industrial Average edged 0.03% higher to 16,781.39, while the S&P 500 fared a little better, up 0.08% to 1,937.78. The Nasdaq gained 0.24% to 4,321.11
- Gold futures advanced 0.1% to $1,275.10 an ounce. Oil futures settled a penny lower at $106.90 a barrel Monday.
- IMF also cut U.S. 2014 growth forecast to 2%. IMF encouraged that US should not end their QE anytime soon and should continue it because the Fed needs to continue to stimulate the economy through its cheap-cash policies, risking fueling instability in financial markets.
- The Fed is expected to announce a further cut to its monthly bond purchasing program, but is not seen raising interest rates until mid-2015.
Categories: Capital Markets