US markets await eBay results
Janet Yellen sounded a warning shot yesterday with respect to some lofty equity valuations, yet given the action in stock markets today the words of caution have fallen largely on deaf ears. So far most of the corporate earnings have been met with investor approval so the complacent buy-on-the-dips mentality is still very much in vogue.
Weak industrial production seems to be the common theme in both the US and indeed in Europe, but this has been tempered by a more optimistic housing market index print.
Gains in the tech stocks are driving this market higher with Yahoo a lonely outlier, shedding 4.69%, as investors manifest their dismay following the Q2 earnings release. eBay is set to report after the bell and the stock price appears to be treading water in advance of the announcement.
On the Comex division of the New York Mercantile Exchange, gold for August delivery tacked on 0.42%, or $5.50, to trade at $1,305.30 a troy ounce during European morning hours.
Prices held in a tight range between $1,298.20 and $1,308.80. Gold ended Wednesday’s session up 0.21%, or $2.70, to settle at $1,299.80 an ounce.
Futures were likely to find support at $1,292.60, the low from July 15 and resistance at $1,314.40, the high from July 15.
Gold prices have been under heavy selling pressure in recent sessions amid speculation that the Federal Reserve could hike U.S. interest rates sooner than expected.
Fed Chair Janet Yellen said earlier in the week that the central bank could start raising interest rates sooner than expected if the U.S. labor market continues to improve more quickly than anticipated.
However, the Fed chair also said that if the recovery was disappointing monetary policy would remain accommodative.
The U.S. was to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index later in the day.
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