"Forward price-to-earnings ratios for equities have increased to a level well above their median of the past three decades," the Federal Reserve wrote in a prepared statement. "Although equity valuations do not appear to be rich relative to Treasury yields, equity prices are vulnerable to rises in term premiums to more normal levels, especially if a reversion was not motivated by positive news about economic growth."
That little nugget slipped under the radar of many in the media. And there are a number of other stories that you might have missed with the markets overly focused on the Thursday "Brexit" vote.
This Stock Is About to Skyrocket: This tiny $5 company just passed each of the seven benchmarks in this secret stock-picking method. Learn how to get in before its revenue surges an estimated 4,709%. Read more...
You can find those answers in today's top stock market news, stocks to watch, ways to profit, and economic calendar for June 22, 2016.
Dow Jones futures projected a 14-point gain as statements from Janet Yellen and tomorrow's vote by the United Kingdom on its future in the European Union loom. We've discussed at length here at Money Morning how the Brexit vote could play out over the next 24 hours, and you're going to hear about it non-stop on financial news networks.
But here's what they aren't telling you: How you should be trading the Brexit.
Crude oil prices were ticking higher after an inventory report from the American Petroleum Institute showed a surprise drawdown of crude stocks here in the United States. That doesn't mean that we're in the clear. Keep an eye out on today's inventory report from the U.S. Energy Information Administration.
WTI crude was up 0.6% this morning, while Brent crude added 0.5%.
The housing industry is back in focus today with the release of monthly existing home sales. This morning, shares of KB Home (NYSE: KBH) were up more than 1.5% after KB beat second-quarter earnings expectations.
The Fed is in focus today as Janet Yellen returns to Capitol Hill to testify before the U.S. House Services Committee. Even though Yellen said yesterday that the Federal Reserve wasn't taking sides on the Brexit vote, members of the central bank have certainly expressed their concerns about the possible departure of Britain from the European Union. This morning in an interview with CNBC, Federal Reserve Governor Jay Powell warned that the financial markets - and particularly the banking sector - could experience significant volatility.
Now here's your list of top stocks to watch in today's market, plus today's economic calendar:
Follow Money Morning on Facebook and Twitter.
We're Seeking Maximum Profits From the "IPO Icebreakers": 2016 has been a rough year for IPO investors, but that's about to change in the most lucrative way possible. Here's what you need to know to get ready for the turnaround. Read More...
[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.