Loading ...On Thursday, the markets consolidated after seven straight days of gain. The sell-off was weak but broad based. Commodities in particular got hit hard with metals taking most of the sell pressure. Oil however, did not follow the trend and ended the day 1% higher at $108.65/barrel. The big news yesterday was Twitter’s IPO announcement and talks of Larry Summers as the next Fed Chairman.
Twitter is doing due diligence to avoid a Facebook like IPO offering. The two companies are very similar in the aspect that they are valued by how many people use a free service and not by the revenue it brings in. I’m sure Twitter will be just as overvalued as Facebook.
The Larry Summers announcement is definitely not priced in yet. I guess the markets are trying to figure out if the rumors are true and if so will he maintain Bernanke’s easy money policies or start to raise rates. At the same time, it appears Obama has leaked his name out to test market reaction.
Today is Friday the 13th, a day that I personally feel lucky. The markets however, it’s another story. Something big changed from yesterday to today and that something is going to put pressure on the market for the next few days. I’ll give everyone a hint, it affects interest rates.
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