Sang Lucci December 20th Pre-Market Update
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Markets are pushing back to premarket highs after Q3 GDP and Jobless Claims figures hit the street. GDP rose to 3.1% which was much better than expected, while claims slightly rose to 361K versus a 360K estimate. Stocks have pushed higher into positive territory after 8:30 AM yet it remains to be seen whether they can hold on to these gains due to stale talks concerning the fiscal cliff resolution.
Boehner is set to put his Plan B to a vote which President Obama has claimed he will veto if passed. This is instilling fears that perhaps a deal will not be met by year's end and the extensive tax increases and budget cuts will force the economy into another recession.
Top of the news today is merger between The Intercontinental Exchange & NYSE Euronext (NYSE: NYX). The Intercontinental Exchange is primarily known for its commodities & energy trading but, after this merger with the NYSE, will be an all encompassing global exchange. The deal is valued at $8.2 billion and both stocks are up drastically in the premarket.
Gold (NYSE: GLD) & Silver (NYSE: SLV) continued their moves lower this morning after the economic was reported. It really seems like funds are liquidating their positions in these precious metals because the bottom still hasn't been hit.
We could be in for yet another chop session today. Traders/investors won't really know how to react to much until a deal gets solidified at the White House. Keep your positions light and your trades tight!
GOOD MORNING YOUNG WORLD!