Lunch Update: Markets Hold Slightly Negative
The markets are hovering slightly negative on the day as the economic picture of Europe and the United States continues to look grim. The Dollar has been slowly inching higher throughout the day, keeping the markets from surging back towards the flat line. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.13, +0.04 (+0.19%). A Dollar that moves higher keeps pressure on the markets. The markets trade inverse to the Dollar.
While gold and silver are surging on the global uncertainty, oil is falling. The United States Oil Fund LP (ETF) (NYSE:USO) is trading at $39.23, -0.43 (-1.08%). The reason why oil is lower is slightly do to the stronger Dollar but more due to the outlook for global demand. As the jobs picture in the United States gets worse and the financial problems of Europe mount, it is likely the global economy will remain weaker for a longer period than expected. This means less future demand for oil and thus lower prices.
Technology shares seem to be keeping the markets from having a large down day. Stocks like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Dell Inc. (NASDAQ:DELL) are all having solid up days. Financial stocks are again performing poorly, though sitting on major support levels. Commodity plays are also under significant pressure today.