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Stock Market Today – Banks Behave Badly, U.S. Energy Boom
Top stock market news today, March 28, 2014: The Dow Jones Industrial Average fell 4.76 points to finish at 16,264.23. The Nasdaq dropped 22.35 points finish at 4,151.23, while the S&P 500 slid 3.52 to close at 1,849.04.
Meanwhile, gold prices fell $8.70 to close at $1,294.70 - below the $1,300 threshold for the first time in six weeks.
Friday's data will center on consumer income in February, an examination of February consumer spending, and a much anticipated look at March consumer sentiment.
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Today's FOMC Meeting: Data-Dependent and Dovish
The end of today's Federal Open Market Committee (FOMC) meeting included fresh dovish language in its policy statement - but the market-friendly attitude failed to excite investors who were hoping for more.
As widely expected, the U.S. Federal Reserve announced it will stay the course on its bond tapering. Anticipated - but not as expected - the policy statement shed some light on eventual interest rate hikes.
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The Five Most Ridiculous Revelations from the Fed Hearings
On Friday, the U.S. Federal Reserve released the transcripts from its vital meetings over the state of the U.S. economy from 2007 through 2009.
The transcripts provide a staggering glimpse into the world of a central bank in crisis, or at least the inability for all parties concerned to grasp the problems at hand.
Here are the five most ridiculous takeaways from the Fed Reports.
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Janet Yellen Sticks to the Script (Here's What It Means for Investors)
Janet Yellen made her debut before Congress Tuesday as the new head of the Fed...
And just like they did for her predecessors, the markets hung on every single word.
Except in this case, nobody (and I mean nobody) expected any major fireworks. What they were looking for instead was a confirmation that it would be "business as usual."
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Five Important Things Federal Reserve Chair Janet Yellen Said to Congress Today
When freshly installed Fed Chair Janet Yellen went before Congress yesterday, she mostly followed the script written by her predecessor, Ben Bernanke. But now that she's in charge, everything she says will carry a great deal of weight.
Here are five key takeaways from Yellen's testimony...
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Today's Stock Market News and Earnings Calendar
Today's stock market news, Feb. 10, 2014: The markets recovered last week after a choppy start to February trading. On Thursday and Friday, the markets dismissed disappointing unemployment numbers and tepid economic data. The S&P 500 increased 2.6% over the two days.
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This Has Been Making Investors Rich for 140 Years
People are viewing the end of stimulus as a sunset. "My, what a wonderful day we've had," they say.
What they should be doing is investing for tomorrow's dawn - the turmoil we're seeing now as part of Yellen's arrival is actually par for the course.
It's also a great time to lock your sights on four companies that will lead the way when the smoke clears... Full Story Read More... -
This Chart Will Save You from a Dangerously Popular Delusion
There's a very dangerous meme making the rounds.
It goes something like this:
The economy is improving, therefore the Fed's going to taper... and, when it does, the economy is strong enough to endure the withdrawals that will come with it.
Don't fall for it.
Nothing could be farther from the truth. Any amount of stimulus reduction will indeed trigger a "taper tantrum."
This chart is all the proof we need... -
The Chart the Federal Reserve Doesn't Want You to See
While the Federal Reserve is going full steam ahead with its money printing, a rule that applies to all central banks says it should be doing the exact opposite. Apparently the Fed plans to keep its collective head buried deep in the sand until everything blows up.
Here's the chart the Fed wishes didn't exist...
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How the Fed QE Taper Will Affect Foreign Markets
Hints from the U.S. Federal Reserve this week that the quantitative easing taper is near ruffled feathers on Wall Street last week - but the idea of less Fed stimulus has caused much more turmoil in certain overseas markets. Here are the places getting hit the hardest.
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What a QE Taper Means for Markets and the Next Fed Chair
On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.
Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.
While Fisher indicated he would prefer to cut back bond purchases in August, Lockhart stated a preference for a September QE taper, although the Fed could wait longer if economic growth and unemployment trends reverse.
But it is Evans' announcement that is the most important. Evans is a member of the activist wing of the Federal Reserve. These members strongly support unconventional monetary policies such as bond buying, which are designed to reduce borrowing costs to spur aggregate demand and hiring across the country.
His views reflect those of the majority of members of the FOMC, the Fed's monetary policy committee.
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Read More... - Esther George on Why It's Time to Begin Adjusting QE Esther George, Kansas City Fed President, is a hawk among doves. Here’s why she’s concerned about what’s ahead for the economy, thanks to QE. Read more... Read More...
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Another Big Fed Week: The Bernanke Monetary Policy Testimony to Congress
There's a key market-moving event this week investors can't miss: the semi-annual Ben Bernanke monetary policy testimony before Congress on Wednesday (House) and Thursday (Senate).
Congressional legislation known as Humphrey-Hawkins (now expired) required the Federal Reserve's Open Market Committee to report to Congress on both the state of the U.S. economy and monetary policy twice a year (February and July). The Fed Chairman testifies before Congress in conjunction with the report.
Traditionally, it had been one of the most important public appearances by the Fed Chairman, back when speeches were rare. But now with news conferences after many Fed meetings, these appearances are less important.
However, this time may be different, as it will be Ben Bernanke's last time in front of Congress before his term ends in 2014. The testimony may once again be a market moving event due to the market's recent concern about the Fed's 'tapering' of quantitative easing (QE).
Which Ben Will Deliver the Monetary Policy Testimony?
The markets have been confused lately by seemingly contradictory statements coming from various Fed members and particularly from Bernanke himself.
In fact, Bernanke's actions lately remind me of Batman villain Two-Face, aka former District Attorney Harvey Dent.
For example, one time he said that winding down QE may happen as soon as the middle of next year. But then, like last week, he flips saying the Fed will not taper the $85 billion a month bond purchasing plan until the U.S. economy is stronger.
He said, "highly accommodative monetary policy for the foreseeable future is what's needed [for the economy]."
Bernanke added that there would not be an automatic rise in interest rates either when the U.S. unemployment hit the Fed's target of 6.5%.
These statements sent the stock market solidly higher with both the S&P 500 and the Dow Industrials nearing their record highs. The S&P 500 and Dow Jones Industrial Average hit new record highs Monday closing at 1,682.50 and 15,484.26.
Traders believe the 'Bernanke put' was back in play. That is, Bernanke will do everything he can to keep stock prices higher.
So which Ben Bernanke will testify before Congress this week? Accommodative Ben or Tightening Ben?
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With Grocery Prices Soaring, This High-Tech Food Play Belongs on Your Shopping List
Aside from the continued sell-off in U.S. tech stocks, one of yesterday’s top financial news stories was the fact that U.S. inflation is accelerating – and at a pace that’s exceeding forecasts.
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