Dow went up 47, advancers barley ahead of decliners & NAZ gained 8. The MLP index sank 5+ to the 341s after its recent run & NAZ added 1+ to 320. Junk bond funds were mixed & Treasuries had a holiday. Oil attempted to go over 50 once again but failed & pulled back sharply, while gold rose to go over 1160.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.8937273240187682)
Chicago Federal Reserve pres Charles Evans said that he would prefer waiting until 2016 to raise interest rates, a point he also made last week. Like many of his colleagues, Evans shrugged off the disappointing Sep jobs report, but said he remains concerned about labor market “slack” & stubbornly low inflation. Evans, regarded as an inflation dove, one of several who support a very cautious approach toward rate hikes, also called for a gradual increase in rates once they start moving higher. Evans said he doesn’t expect the short-term Fed Funds rate to be above 1% by the end of next year, which would mean 3 rate hikes of 0.25% in 2016. “Before raising rates, I would like to have more confidence than I do today that inflation is indeed beginning to head higher,” Evans said. FOMC members have stated repeatedly their belief that healthy gains in job creation will squeeze the slack out the labor market, eventually pushing wages higher & lifting inflation toward the Fed’s 2% target range. Evans isn’t quite so sure. “I am far less confident about reaching our inflation goal within a reasonable time frame,” he added. “Inflation has been too low for too long.” Evans noted that most of his colleagues expect inflation to rise nearly to the 2% target by the end of 2017, but that his own forecast is “less sanguine.”
Federal Reserve policymakers are still likely to raise interest rates this year but that is “an expectation, not a commitment”, & could change if the global economy pushes the US economy further off course, Federal Reserve Vice Chair Stanley Fischer said. “Both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy,” Fischer told a group at the sidelines of the IMF meeting in Peru. He said “considerable uncertainties” surrounded the US economic outlook, particularly the drag on exports from slowing global growth, low investment caused by the decline in oil prices & what he called a “disappointing” recent drop in U.S. job growth. He said he felt the US economy was still generating enough jobs to continue making progress towards the Fed’s goal of maximum employment & that inflation would eventually rise. Based on that, he said, the central bank should be able to keep on track with an initial rate hike expected in Oct or Dec. But he also cautioned the group that the US is more exposed than ever to intl events & that developments in China & elsewhere had already influenced the Fed to delay a widely expected rate increase in Sep. “We do not currently anticipate that the effects of these recent developments on the U.S. economy will prove to be large enough to have a significant effect on the path for policy,” he said. “That said, recent employment reports have been somewhat disappointing and, as always, we are closely monitoring developments that could affect our sense of the economic outlook and the risks surrounding that outlook.”
General Electric, a Dow stock, is close to selling $30B in loans to Wells Fargo (WFC). WFC has outbid others for GE's vendor financing, commercial distribution finance & direct lending assets, according to a leaker. The source said, however, that negotiations were ongoing & could still fall apart. Recently, GE announced it agreed to sell its railcar leasing business to WFC for an undisclosed sum. GE stock was pennies higher. If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3389&a_bid=6ae5b6f7
Dell (now private) offered to buy EMC (EMC) for $67B, the largest tech acquisition. EMC is up pocket change, but that news is not exciting the stock market as has been the case in the past. All eyes are on the Fed, until earnings start coming this week. The market would be better off it the Fed would raise their rate & get that over with. Over-wise very little was decided on this semi-holiday.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLX15.NYM | ....Crude Oil Nov 15 | ....47.37 |  ...2.26 | (4.6%) |
Chicago Federal Reserve pres Charles Evans said that he would prefer waiting until 2016 to raise interest rates, a point he also made last week. Like many of his colleagues, Evans shrugged off the disappointing Sep jobs report, but said he remains concerned about labor market “slack” & stubbornly low inflation. Evans, regarded as an inflation dove, one of several who support a very cautious approach toward rate hikes, also called for a gradual increase in rates once they start moving higher. Evans said he doesn’t expect the short-term Fed Funds rate to be above 1% by the end of next year, which would mean 3 rate hikes of 0.25% in 2016. “Before raising rates, I would like to have more confidence than I do today that inflation is indeed beginning to head higher,” Evans said. FOMC members have stated repeatedly their belief that healthy gains in job creation will squeeze the slack out the labor market, eventually pushing wages higher & lifting inflation toward the Fed’s 2% target range. Evans isn’t quite so sure. “I am far less confident about reaching our inflation goal within a reasonable time frame,” he added. “Inflation has been too low for too long.” Evans noted that most of his colleagues expect inflation to rise nearly to the 2% target by the end of 2017, but that his own forecast is “less sanguine.”
Chicago Fed's Evans Prefers 2016 Rate Hike
Federal Reserve policymakers are still likely to raise interest rates this year but that is “an expectation, not a commitment”, & could change if the global economy pushes the US economy further off course, Federal Reserve Vice Chair Stanley Fischer said. “Both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy,” Fischer told a group at the sidelines of the IMF meeting in Peru. He said “considerable uncertainties” surrounded the US economic outlook, particularly the drag on exports from slowing global growth, low investment caused by the decline in oil prices & what he called a “disappointing” recent drop in U.S. job growth. He said he felt the US economy was still generating enough jobs to continue making progress towards the Fed’s goal of maximum employment & that inflation would eventually rise. Based on that, he said, the central bank should be able to keep on track with an initial rate hike expected in Oct or Dec. But he also cautioned the group that the US is more exposed than ever to intl events & that developments in China & elsewhere had already influenced the Fed to delay a widely expected rate increase in Sep. “We do not currently anticipate that the effects of these recent developments on the U.S. economy will prove to be large enough to have a significant effect on the path for policy,” he said. “That said, recent employment reports have been somewhat disappointing and, as always, we are closely monitoring developments that could affect our sense of the economic outlook and the risks surrounding that outlook.”
Fischer: Fed Still Likely to Raise Rates
General Electric, a Dow stock, is close to selling $30B in loans to Wells Fargo (WFC). WFC has outbid others for GE's vendor financing, commercial distribution finance & direct lending assets, according to a leaker. The source said, however, that negotiations were ongoing & could still fall apart. Recently, GE announced it agreed to sell its railcar leasing business to WFC for an undisclosed sum. GE stock was pennies higher. If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3389&a_bid=6ae5b6f7
GE Nears Deal to Sell Over $30B of Loans to Wells Fargo
General Electric (GE)
Dell (now private) offered to buy EMC (EMC) for $67B, the largest tech acquisition. EMC is up pocket change, but that news is not exciting the stock market as has been the case in the past. All eyes are on the Fed, until earnings start coming this week. The market would be better off it the Fed would raise their rate & get that over with. Over-wise very little was decided on this semi-holiday.
Dow Jones Industrials
No comments:
Post a Comment