Federal Reserve https://www.benzinga.com/views/taxonomy/term/125743 en Is The Economy Over-Inflating? Futures May Hold The Answer https://www.benzinga.com/markets/futures/18/10/12514867/is-the-economy-over-inflating-futures-may-hold-the-answer <p>The equities markets in October is turning into a proving ground of sorts for U.S. monetary policy.</p> <p>The Federal Reserve seems keen to maintain it&rsquo;s hawkish stance on nipping any sign of inflation in the bud, forecasting one more rate hike for 2018 and bringing the total increases in 2018 to four. Fed chair Jerome Powell doubled down on this approach further when he introduced the possibility of instituting up to seven more rate increases over the course of 2019.</p> <p>President Trump, on the other hand, is characteristically vocal about how that plan is wreaking havoc on the stock market, which is one of his favorite examples of success for his administration and the Republican-dominated legislature due to the recent tax cuts.</p> <p>While the stock market might seem to be siding with the commander-in-chief in it&rsquo;s aversion to interest rate increases, inflation might not be what the market, or President Trump is truly bracing for. The answer to what&rsquo;s rattling investors could lie in some fundamental and <a href="https://rjofutures.rjobrien.com/learning-center/technical-analysis/?cid=70144000001EuMz">technical readings</a> of the humble futures market.</p> <p>The ...</p><p><a href=https://www.benzinga.com/markets/futures/18/10/12514867/is-the-economy-over-inflating-futures-may-hold-the-answer alt=Is The Economy Over-Inflating? Futures May Hold The Answer>Full story available on Benzinga.com</a></p> Inflation MACD RJO Futures RSI Futures Technicals Economics Federal Reserve Markets Trading Ideas General Futures Technicals Economics Federal Reserve Markets Trading Ideas General Benzinga Tue, 16 Oct 2018 16:58:27 +0000 Chris Dier-Scalise 12514867 at https://www.benzinga.com Bank Earnings To The Rescue? Market Seeing Some Green After Strong Results https://www.benzinga.com/news/earnings/18/10/12513800/bank-earnings-to-the-rescue-market-seeing-some-green-after-strong-resul <p>The question today is whether a flurry of strong earnings from banks and other companies can help jumpstart the sagging market. Judging from early action, the answer seems to be affirmative, at least for the moment.</p> <p><strong>Morgan Stanley</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>), <strong>Goldman Sachs Group Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>), <strong>UnitedHealth Group Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>), and <strong>Johnson &amp; Johnson</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>) were among the companies reporting solid results early Tuesday. Better than expected investment banking results at GS helped that company easily beat analysts&rsquo; projections for earnings per share and revenue, while MS also posted robust investment banking growth and saw its shares surge in pre-market trading.</p> <p>JNJ, meanwhile, raised guidance after a positive quarter, and UNH shares jumped 1.5 percent before the opening bell after the company exceeded analysts&rsquo; estimates. The only fly in the corporate ointment early Tuesday might be <strong>WalMart Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmt#NYSE">WMT</a>), which trimmed its earnings outlook due to its $16 billion acquisition of e-commerce firm Flipkart earlier this year, its largest acquisition ever. However, WMT shares didn&rsquo;t drop too much, and investors should consider taking the guidance news in context, as it partially reflects the company expanding its business.</p> <p>Away from corporate news, the market had a good lead-in from Europe Tuesday after indices there moved higher. The bounce from nearly two-year lows for some of the European indices could also help give U.S. stocks a positive injection. The U.S. stock market has been having a tough time recently, but the consumer and the economy overall seem to be doing quite well.</p> <h3>Morgan and Goldman Results Look Solid</h3> <p>Earnings per share at MS hit $1.17, easily topping the $1.02 third-party consensus estimate. Equity trading revenue of $2 billion was up 5 percent, in line with estimates, while overall investment banking results beat Wall Street analysts&rsquo; expectations. The closely watched bond trading figure was roughly flat year-over-year in what&rsquo;s been a rough environment.</p> <p>Over at GS, earnings per share of $6.28 easily topped the consensus figure of $5.38. Investment banking rose 10 percent, also above Wall Street&rsquo;s estimates, helped in part by strength in initial public offerings (IPOs). Trading revenue was about flat, with equities rising 17 percent while trading in fixed income, currencies and commodities (FICC) fell 10 percent.</p> <p>As with other big banks, the numbers themselves only tell part of the story. It&rsquo;s also important to listen for what their executives say on earnings calls and to get their sense of how the economy is shaping up. Sometimes the CEOs&rsquo; remarks can have as much impact on the market as the earnings data.</p> <p>With MS and GS out of the way, investors can prepare themselves for <a href="https://tickertape.tdameritrade.com/market-news/NFLX-earnings-17055" target="_blank">this afternoon&rsquo;s results from <strong>Netflix, Inc.</strong></a> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>) and <strong>IBM</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ibm#NYSE">IBM</a>). The last time NFLX reported, it missed analyst estimates for subscriber figures, which many analysts pointed at as the primary culprit that sparked some panic selling. Total membership additions were 5.15 million in Q2 2018, missing management&rsquo;s original forecast for 6.2 million.&nbsp;</p> <p>For the third quarter, management said it expects to add 5 million subscribers, including 650,000 in the U.S. and 4.35 million in international markets. NFLX could be worth watching this afternoon as the streaming wars continue, probably one of the more interesting aspects of the stock market right now as other companies like the <strong>Walt Disney Co. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) and <strong>AT&amp;T Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) also make investments.</p> <p>IBM, meanwhile, might be worth a look for what executives say about the economy and any impact from U.S. and Chinese tariffs. IBM pulls in a lot of revenue from overseas and operates in many geographies, so it has a ...</p><p><a href=https://www.benzinga.com/news/earnings/18/10/12513800/bank-earnings-to-the-rescue-market-seeing-some-green-after-strong-resul alt=Bank Earnings To The Rescue? Market Seeing Some Green After Strong Results>Full story available on Benzinga.com</a></p> AAPL AMZN BAC DIS Earnings FB GS IBM JNJ MS MU News NFLX NVDA SHLD T TD Ameritrade UNH WMT Federal Reserve Markets AAPL US0378331005 AMZN US0231351067 NFLX US64110L1061 NVDA US67066G1040 SHLD US8123501061 BAC US0605051046 DIS US2546871060 GS US38141G1040 IBM US4592001014 JNJ US4781601046 MS US6174464486 MU US5951121038 T US00206R1023 UNH US91324P1021 WMT US9311421039 FB News Earnings Federal Reserve Markets Benzinga Tue, 16 Oct 2018 14:43:30 +0000 JJ Kinahan 12513800 at https://www.benzinga.com Wells Fargo Expert Sees Zero Chance Of Fed Reacting To Trump Remarks https://www.benzinga.com/general/politics/18/10/12506800/wells-fargo-expert-sees-zero-chance-of-fed-reacting-to-trump-remarks <p>President Donald Trump&#39;s <a href="https://www.benzinga.com/general/politics/18/10/12493856/kudlow-others-weigh-in-on-feds-independence-after-trumps-loco-remark">criticism of the &quot;loco&quot; Federal Reserve</a> will likely have &quot;zero impact&quot; on future policies, according to Michael Schumacher, head of interest rate strategy at <strong>Wells Fargo &amp; Co</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>).&nbsp;</p> <h3>What Happened</h3> <p>Trump described the <a href="https://www.benzinga.com/federal-reserve">Fed&#39;s interest rate hike</a> policies as &quot;out of control&quot; and &quot;loco.&quot;</p> <p>But no matter what terms the president uses,&nbsp;the central bank won&#39;t be deterred as at the end of the day stocks &quot;are really not down very much,&quot; <a href="https://www.cnbc.com/2018/10/14/trump-called-the-fed-crazy-but-it-wont-deter-future-rate-hikes.html">Schumacher told CNBC</a> in an interview last week.</p> <p>While a 3-percent sell off in major indices is certainly a &quot;big deal,&quot; the kind of declines in stocks needed to alter the Fed&#39;s policies would be in the 10-15-percent range, the Wells Fargo strategist said.&nbsp;</p> <p>Concerns about higher interest rates have&nbsp;&quot;shaken investors&quot; who are &quot;a ...</p><p><a href=https://www.benzinga.com/general/politics/18/10/12506800/wells-fargo-expert-sees-zero-chance-of-fed-reacting-to-trump-remarks alt=Wells Fargo Expert Sees Zero Chance Of Fed Reacting To Trump Remarks>Full story available on Benzinga.com</a></p> CNBC Donald Trump Jim Cramer Mad Money Michael Schumacher SPX SPY WFC Politics Federal Reserve Media General SPY US78462F1030 WFC US9497461015 SPX Politics Federal Reserve Media General Benzinga Mon, 15 Oct 2018 18:30:32 +0000 Jayson Derrick 12506800 at https://www.benzinga.com Credit Card Survey Shows 'Dramatically' Higher APRs, Fewer Fees In 2018 https://www.benzinga.com/general/education/18/10/12494101/credit-card-survey-shows-dramatically-higher-aprs-fewer-fees-in-201 <p>CreditCards.com&#39;s annual survey covers aspects of credit such as the average number of fees per card, foreign transaction fee data, balance transfer fees and annual fees. In 2018, it appears that rates are rising and fees are falling.</p> <h3>What Happened</h3> <p>By sampling 100 general-purpose cards to assess the environment, the 2018 Credit Card Fee Survey revealed that issuer fees have frozen following sharp APR increases this year.</p> <p>&ldquo;The cards we surveyed listed a total of 545 fees, down from 591 counted in last year&rsquo;s survey,&quot; according to CreditCards.com. &ldquo;Meanwhile, card APRs have risen dramatically in the past year as the Fed continues to normalize interest ...</p><p><a href=https://www.benzinga.com/general/education/18/10/12494101/credit-card-survey-shows-dramatically-higher-aprs-fewer-fees-in-201 alt=Credit Card Survey Shows &#039;Dramatically&#039; Higher APRs, Fewer Fees In 2018>Full story available on Benzinga.com</a></p> 2018 Credit Card Fee Survey APR AXP COF CreditCards.com DFS fees MA V Crowdsourcing Federal Reserve Media Personal Finance General AXP US0258161092 COF US14040H1059 DFS US2547091080 MA US57636Q1040 V US92826C8394 Crowdsourcing Federal Reserve Media Personal Finance General Benzinga Fri, 12 Oct 2018 12:02:20 +0000 Hannah Genig 12494101 at https://www.benzinga.com Kudlow, Others Weigh In On Fed's Independence After Trump's 'Loco' Remark https://www.benzinga.com/general/politics/18/10/12493856/kudlow-others-weigh-in-on-feds-independence-after-trumps-loco-remark <p><a href="http://www.benzinga.com/topic/donald-trump">President Donald Trump</a> said Wednesday the Federal Reserve is &quot;going loco and there&#39;s no reason for them to do it.&quot;</p> <p>On Thursday, White House National Economic Council Director Larry Kudlow emphasized the Fed&#39;s independence and said Trump is not dictating any of its policies from the White House.</p> <h3>What Happened</h3> <p>Trump may have his own personal views on Fed policy that he often shares with the public, Kudlow <a href="https://www.cnbc.com/video/2018/10/11/kudlow-trump-meeting-with-xi-not-set.html">told CNBC</a> in a Thursday interview. The president&#39;s comments Wednesday are &quot;nothing new&quot; and the Federal Reserve is &quot;going to do what they are going to do,&quot; he said.&nbsp;</p> <p>What&#39;s important to keep in mind is that the <a href="https://www.benzinga.com/federal-reserve">Fed</a>&nbsp;has lifted its target rate seven times in the current cycle under both former Fed Chair Janet Yellen and current Chair ...</p><p><a href=https://www.benzinga.com/general/politics/18/10/12493856/kudlow-others-weigh-in-on-feds-independence-after-trumps-loco-remark alt=Kudlow, Others Weigh In On Fed&#039;s Independence After Trump&#039;s &#039;Loco&#039; Remark>Full story available on Benzinga.com</a></p> AMZN CNBC Donald Trump FB Jay Powell Larry Kudlow Larry Summers SPX SPY Politics Federal Reserve Media General SPY US78462F1030 AMZN US0231351067 SPX FB Politics Federal Reserve Media General Benzinga Thu, 11 Oct 2018 16:12:41 +0000 Jayson Derrick 12493856 at https://www.benzinga.com US Inflation Preview: Core CPI Set To Accelerate, Keeping The USD Bid https://www.benzinga.com/news/18/10/12492309/us-inflation-preview-core-cpi-set-to-accelerate-keeping-the-usd-bid <div class="fxs_article_body"> <div class="fxs_article_content"> <ul> <li><strong>US Core Inflation is expected to recover after a blip in August.</strong></li> <li><strong>Fed expectations for a hike in December are set to strengthen.</strong></li> <li><strong>Barring a second consecutive disappointment, the USD will likely remain bid.</strong></li> </ul> <p>The US publishes its Consumer Price Index report for September on Thursday, October 11th, at 12:30 GMT. The <a href="https://www.fxstreet.com/macroeconomics/central-banks/fed">Fed</a> has two mandates: employment and price stability. The CPI report provides a fresh update on inflation, thus impacting the Fed and the US Dollar.</p> <h2>Expectations: Showing that the slowdown was a one-off</h2> <p>The job market continues creating jobs at a healthy pace while core inflation is well-anchored around the 2 percent target. The Fed cares about core prices: the changes that do include energy and food, which are quite volatile. Will we see signs of inflationary pressure now?</p> <p>The Fed target the Core PCE which stood at 2 percent YoY in August. The Core CPI had a different methodology and stood at 2.2 percent in August. We will now get the fresh ...</p></div></div><p><a href=https://www.benzinga.com/news/18/10/12492309/us-inflation-preview-core-cpi-set-to-accelerate-keeping-the-usd-bid alt=US Inflation Preview: Core CPI Set To Accelerate, Keeping The USD Bid>Full story available on Benzinga.com</a></p> FXStreet Inflation News Econ #s Federal Reserve Markets News Econ #s Federal Reserve Markets Benzinga Thu, 11 Oct 2018 13:34:03 +0000 Yohay Elam 12492309 at https://www.benzinga.com Inflation: What It Is, Where It Comes From And How To Protect Your Portfolio From It https://www.benzinga.com/general/education/18/10/12459122/inflation-what-it-is-where-it-comes-from-and-how-to-protect-your-po <p>The U.S. economy is firing on all cylinders, which is generally good news for investors. Yet a booming economy also creates its own set of unique financial problems &mdash; and inflation is at the top of the list.</p> <h3>What Is Inflation?</h3> <p>The U.S. unemployment rate is at its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/10/12466105/september-jobs-report-party-like-its-1969">lowest level in four decades</a> at 3.7&nbsp;percent. While that low unemployment rate is great news for American workers, it&rsquo;s not necessarily great news for U.S. companies looking to grow their businesses. These companies are now competing to hire a dwindling number of qualified employees, and the increasing competition for labor eventually leads to companies being forced to raise wages.</p> <p>While rising wages are good for workers, increasing labor costs eat into corporate profits, making it harder to grow earnings. To compensate, companies in a booming economy tend to pass those costs on to their customers by raising ...</p><p><a href=https://www.benzinga.com/general/education/18/10/12459122/inflation-what-it-is-where-it-comes-from-and-how-to-protect-your-po alt=Inflation: What It Is, Where It Comes From And How To Protect Your Portfolio From It>Full story available on Benzinga.com</a></p> GLD Inflation TIP USO VNQ Education Top Stories Federal Reserve Trading Ideas General GLD US78463V1070 TIP US4642871762 USO US91232N1081 VNQ US9229085538 Education Top Stories Federal Reserve Trading Ideas General Benzinga Thu, 11 Oct 2018 13:32:28 +0000 Wayne Duggan 12459122 at https://www.benzinga.com US Inflation Preview: Core CPI Set To Accelerate, Keeping The USD Bid https://www.benzinga.com/news/18/10/12476766/us-inflation-preview-core-cpi-set-to-accelerate-keeping-the-usd-bid <div class="fxs_article_body"> <div class="fxs_article_content"> <ul> <li><strong>US Core Inflation is expected to recover after a blip in August.</strong></li> <li><strong>Fed expectations for a hike in December are set to strengthen.</strong></li> <li><strong>Barring a second consecutive disappointment, the USD will likely remain bid.</strong></li> </ul> <p>The US publishes its Consumer Price Index report for September on Thursday, October 11th, at 12:30 GMT. The <a href="https://www.fxstreet.com/macroeconomics/central-banks/fed">Fed</a> has two mandates: employment and price stability. The CPI report provides a fresh update on inflation, thus impacting the Fed and the US Dollar.</p> <h2>Expectations: Showing that the slowdown was a one-off</h2> <p>The job market continues creating jobs at a healthy pace while core inflation is well-anchored around the 2 percent target. The Fed cares about core prices: the changes that do include energy and food, which are quite volatile. Will we see signs of inflationary pressure now?</p> <p>The Fed target the Core PCE which stood at 2 percent YoY in August. The Core CPI had a different methodology and stood at 2.2 percent in August. We will now get the fresh ...</p></div></div><p><a href=https://www.benzinga.com/news/18/10/12476766/us-inflation-preview-core-cpi-set-to-accelerate-keeping-the-usd-bid alt=US Inflation Preview: Core CPI Set To Accelerate, Keeping The USD Bid>Full story available on Benzinga.com</a></p> CPI FXStreet News Forex Econ #s Federal Reserve Markets News Forex Econ #s Federal Reserve Markets Benzinga Tue, 09 Oct 2018 13:15:13 +0000 Yohay Elam 12476766 at https://www.benzinga.com What Is The 'Fed Put' — And Is It Still In Place? https://www.benzinga.com/general/education/18/10/12451682/what-is-the-fed-put-and-is-it-still-in-place <p>The Federal Reserve has faced some harsh criticism for its interest rate hikes in recent quarters. In the past, stock market investors have taken comfort in the idea of a &ldquo;Fed put&rdquo; that supports stock prices, or at least does them no harm. Here&rsquo;s a closer look at what exactly the Fed put is, and whether&nbsp;it&rsquo;s still helping investors.</p> <h3>What Is The Fed Put?</h3> <p>The Fed put is the general idea that the Federal Reserve is willing and able to adjust monetary policy in a way that is bullish for the stock market.</p> <p>The Fed&rsquo;s primary goals are related to maximizing employment and keeping inflation in check. Yet a stable economy, modest inflation and the stock market are all closely linked. If employment crashes, inflation gets out of control or the stock market plummets, the Fed ...</p><p><a href=https://www.benzinga.com/general/education/18/10/12451682/what-is-the-fed-put-and-is-it-still-in-place alt=What Is The &#039;Fed Put&#039; — And Is It Still In Place?>Full story available on Benzinga.com</a></p> Fed Put Jerome Powell SPY Education Federal Reserve General SPY US78462F1030 Education Federal Reserve General Benzinga Sat, 06 Oct 2018 20:46:41 +0000 Wayne Duggan 12451682 at https://www.benzinga.com Did Hurricane Blow Down Jobs Growth? Weak Headline Number But Wage Growth Muted https://www.benzinga.com/news/18/10/12464847/did-hurricane-blow-down-jobs-growth-weak-headline-number-but-wage-growth-muted <p>The old adage about not judging a book by its cover probably applies to Friday&rsquo;s September payrolls report. Though the headline jobs growth number slid dramatically, there may be enough creamy filling inside to paint a relatively positive picture about the economy.</p> <p>Most importantly, the report might push back some of the inflation fears that plagued Wall Street on Thursday. While payrolls rose a relatively muted 134,000 during the month, wages climbed only 2.8 percent year over year. That was down from 2.9 percent in August and basically in line with analysts&rsquo; expectations. Going into the report, there was a lot of concern that if wages rose faster than in August, the market might interpret that as a sign of the economy getting too hot. Judging from Friday&rsquo;s data, it doesn&rsquo;t look like there&rsquo;s any need to turn up the air conditioning.</p> <p>Looking deeper into the data, the government upwardly revised job growth for both July and August, meaning that combined growth in those two months is now 87,000 above the previous mark. In August, a massive 270,000 jobs were created, while July was subdued at 165,000 but up nearly 20,000 from the previous report.</p> <p>One thought being bandied around in the minutes after Friday&rsquo;s report is the possibility that Hurricane Florence, which ripped through North Carolina last month, might have weighed on job growth in the region and had a negative impact on the overall number. We saw something similar with hurricanes at this time last year. It&rsquo;s going to be important to check numbers in future reports to see if this one gets revised or perhaps if job growth revives in a big way as the hurricane after-effects work their way through the southeastern states. Last year, that seemed to be the case, with job growth recovering in the final months of the year.</p> <p>Another positive trend is the broad gains in sector employment, particularly in construction and manufacturing. The economy gained 23,000 construction jobs and 18,000 manufacturing jobs, maybe a sign that businesses continue to expand their operations. The biggest gainer in September was so-called &ldquo;professional and business services&rdquo; employment, which grew by 54,000 and could be another indication of a thriving employment picture despite the relatively weak overall headline number in the report. Transportation and warehousing, along with health care, also posted solid September gains.</p> <p>One number that just won&rsquo;t budge is labor force participation of 62.7 percent. That was unchanged from the previous month. Some economists would like to see that figure begin to climb, a possible signal that the growing economy is attracting more people to jobs. Unemployment fell to 3.7 percent, the lowest since the late 1960s, but low labor force participation might play into that to some degree. That said, the number of unemployed people fell 270,000 in September. That big number might partly reflect lack of data due to the hurricane, because the number of unemployed is down just 0.5 percent year over year.</p> <h3>Late Revival Thursday&nbsp;</h3> <p>Looking back at Thursday, stocks did stage a late-day recovery from their lows. Both the S&amp;P 500 (SPX) and the Dow ...</p><p><a href=https://www.benzinga.com/news/18/10/12464847/did-hurricane-blow-down-jobs-growth-weak-headline-number-but-wage-growth-muted alt=Did Hurricane Blow Down Jobs Growth? Weak Headline Number But Wage Growth Muted>Full story available on Benzinga.com</a></p> AMZN Jerome Powell News TD Ameritrade Econ #s Federal Reserve Markets AMZN US0231351067 News Econ #s Federal Reserve Markets Benzinga Fri, 05 Oct 2018 14:09:42 +0000 JJ Kinahan 12464847 at https://www.benzinga.com GBP/USD Forecast: 50 DMA Support Turns To Resistance As Fed Chair Indicates More Hikes https://www.benzinga.com/news/18/10/12457919/gbpusd-forecast-50-dma-support-turns-to-resistance-as-fed-chair-indicates-more-h <ul> <li><strong>A 50-day moving average at 1.2972 on a daily chart turns resistance after as Sterling slides on the indication of Fed hiking further.&nbsp;</strong></li> <li><strong>The UK Prime Minister national Tory convention speech called for unity in Brexit negotiations with the UK ready for no deal Brexit if concessions are not met.</strong></li> <li><strong>Break below 50-day moving average brings targets of 1.2935 and 1.2900 into the spotlight.&nbsp;</strong></li> </ul> <p>Sterling is trading little changed on the upside at around 1.2965 level on Thursday after the Federal Reserve chairman <a href="https://www.fxstreet.com/macroeconomics/central-banks/fed">Jerome Powell</a> indicated more rate hikes are coming. During the panel discussion in Washington DC on Wednesday Powell said Fed may raise rates past &ldquo;neutral&rdquo; territory as they need to gradually move towards normal as ...</p><p><a href=https://www.benzinga.com/news/18/10/12457919/gbpusd-forecast-50-dma-support-turns-to-resistance-as-fed-chair-indicates-more-h alt=GBP/USD Forecast: 50 DMA Support Turns To Resistance As Fed Chair Indicates More Hikes>Full story available on Benzinga.com</a></p> Brexit FXStreet GBP/USD News Forex Federal Reserve Markets News Forex Federal Reserve Markets Benzinga Thu, 04 Oct 2018 13:15:45 +0000 Mario Blascak - PhD 12457919 at https://www.benzinga.com These Stocks Do Well When Rates Rise https://www.benzinga.com/trading-ideas/long-ideas/18/10/12436580/these-stocks-do-well-when-rates-rise <p>Domestic equities continue reminding investors that rising interest rates do not have to be punitive for equities. Last week, the Federal Reserve <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/09/12412680/the-federal-reserve-as-expected-issues-third-rate-hike-">raised rates for the third time this year</a>. The S&amp;P 500 surged Monday, extending its year-to-date gain to over 9 percent.</p> <p>That statistic indicates broad-based strength for equities amid this year&#39;s Fed tightening, but there are pockets of superior performances.</p> <h3>What Happened</h3> <p>As has been widely documented, small caps are outperforming their large-cap rivals this year. The <strong>iShares Russell 2000 ETF </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>), the largest exchange traded fund dedicated to domestic small caps, entered Monday with a year-to-date gain of 11.51 percent, well ahead of the S&amp;P 500 and the Russell 1000 Index.</p> <p>Historical data suggest this year&#39;s small-cap surge is not unusual when rates ...</p><p><a href=https://www.benzinga.com/trading-ideas/long-ideas/18/10/12436580/these-stocks-do-well-when-rates-rise alt=These Stocks Do Well When Rates Rise>Full story available on Benzinga.com</a></p> IWF IWM Long Ideas Broad U.S. Equity ETFs Small Cap Analysis Top Stories Federal Reserve Trading Ideas ETFs IWF US4642876142 IWM US4642876555 Long Ideas Broad U.S. Equity ETFs Small Cap Analysis Top Stories Federal Reserve Trading Ideas ETFs Benzinga Tue, 02 Oct 2018 16:56:22 +0000 ETF Professor 12436580 at https://www.benzinga.com Lunch With Powell: Fed Chair To Speak Later, But Focus Now On Weak Europe, Trade Relations https://www.benzinga.com/news/earnings/18/10/12441867/lunch-with-powell-fed-chair-to-speak-later-but-focus-now-on-weak-europe <p>After a new North American trade agreement gave investors a break Monday from last week&rsquo;s intense interest rate focus, attention could zero back in on the central bank today as Fed Chairman Jerome Powell delivers a lunchtime speech.</p> <p>Meanwhile, stocks appear to face some pressure after Europe and Asia saw red overnight. Focus could be turning back toward U.S./China trade relations, where things don&rsquo;t seem to be going so well. European markets fell amid more worries about Italy and its budget, with banking shares taking a hit.&nbsp;</p> <p>There&rsquo;s also a stray earnings report to check this morning, as <strong>PepsiCo, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>) beat the average analyst estimate on earnings and revenue, but cut full-year earnings guidance on what it said is the impact of a stronger dollar. We&rsquo;ll see if this becomes a theme as earnings season gets underway late next week.</p> <p>Aside from Powell and PEP, there isn&rsquo;t a lot of fresh news out there today. The market might be coming back to earth after a couple of really good days.</p> <h3>Powell to Address Employment, Inflation Outlook</h3> <p>Based on the title of Powell&rsquo;s talk, &ldquo;The Outlook for Employment and Inflation,&rdquo; this one looks like it might be worth watching as investors try to get a better sense of Powell&rsquo;s views. Sometimes a Fed speech title sounds confusing or even dull, but this 12:45 p.m. ET talk doesn&rsquo;t look like one of those occasions.</p> <p>On the other hand, it&rsquo;s hard to imagine Powell coming out less than a week after the last Federal Open Market Committee (FOMC) meeting and outlining a major change in view. Powell and other Fed officials have arguably signalled a &ldquo;wait and see&rdquo; view on both inflation and employment over the last few months, promising that gradual rate hikes will continue and removing the Fed&rsquo;s &ldquo;accommodative&rdquo; language from last week&rsquo;s press release.&nbsp;</p> <p>The Fed seems to be in a tough place, because you could argue it&rsquo;s achieved what it wanted on both employment and inflation and now has to find a way to keep them where they are. There&rsquo;s not much mystery in the markets about the Fed&rsquo;s next move, with futures prices predicting a better than 80 percent chance of another hike by the end of the year.</p> <p>Anyway, since we&rsquo;re talking about rates, Treasury note yields rattled around early this week but really didn&rsquo;t go very far in either direction. The 10-year yield wasn&rsquo;t able to scoot above the May high of 3.12 percent last week, but still remains in striking distance at just under 3.07 percent. The new trade deal appeared to give yields slight support Monday, while the yield curve narrowed slightly as two-year yields gained on 10-year yields. That gap hasn&rsquo;t changed much recently, but remains a focus for some analysts who worry that continued flattening could signal economic trouble.</p> <h3>Late-Day Pullback In SPX Monday Continues Recent Pattern</h3> <p>After stocks jumped out to big early gains Tuesday, the S&amp;P 500 (SPX) and Nasdaq (COMP) spent much of the day walking slowly back from their session highs. This has been a pattern lately, particularly in the SPX, where stocks haven&rsquo;t been able to maintain early enthusiasm on a bunch of recent days ...</p><p><a href=https://www.benzinga.com/news/earnings/18/10/12441867/lunch-with-powell-fed-chair-to-speak-later-but-focus-now-on-weak-europe alt=Lunch With Powell: Fed Chair To Speak Later, But Focus Now On Weak Europe, Trade Relations>Full story available on Benzinga.com</a></p> BA Earnings GE GM Jerome Powell LMT News PEP TD Ameritrade Federal Reserve Markets BA US0970231058 GE US3696041033 GM US37045V1008 LMT US5398301094 PEP US7134481081 News Earnings Federal Reserve Markets Benzinga Tue, 02 Oct 2018 14:38:02 +0000 JJ Kinahan 12441867 at https://www.benzinga.com Flat Yield Curve, Geopolitical Uncertainty Weighing On Financials Ahead Of Q3 Earnings https://www.benzinga.com/news/earnings/18/10/12434944/flat-yield-curve-geopolitical-uncertainty-weighing-on-financials-ahead- <p class="MsoNoSpacing">Stocks in the financial sector have been putting up some mixed performances of late as the Fed has continued to hike interest rates. Overall, the S&amp;P Financial Select Sector Index (IXM) is down 1.2 percent year-to-date, although the sector dropped 2.89 percent in September alone, with one red day after another from September 21 to the end of the month.&nbsp;</p> <p class="MsoNoSpacing">Within the sector, credit card companies and payment processors like <strong>Square Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sq#NYSE">SQ</a>), <strong>MasterCard Inc. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>), <strong>Visa Inc. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>) and <strong>PayPal Holdings Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pypl#NASDAQ">PYPL</a>) have outperformed the S&amp;P 500 (SPX) by a wide margin, with year-to-date returns ranging from 18.96 percent for PYPL to 173.74 percent for SQ. Data and exchange-related financial businesses, like the Intercontinental Exchange Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ice#NYSE">ICE</a>), CME <strong>Group Inc. </strong>(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cme#NASDAQ">CME</a>) and <strong>S&amp;P Global Inc. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spgi#NYSE">SPGI</a>) have been stronger performers within the sector as well.</p> <p class="MsoNoSpacing">The laggards have been the investment banks and asset managers, while many of the larger, diversified banks have been underperforming: <strong>Goldman Sachs Group Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>), <strong>Morgan Stanley</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>) and <strong>Wells Fargo &amp; Co.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) are all down more than double-digits in 2018. <strong>JP Morgan Chase &amp; Co.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) is one of the few of the big banks that is positive on the year, up 4.53 percent as of October 1.&nbsp;</p> <p class="MsoNoSpacing">At this point, prospective regulatory reform has likely been baked into stock prices. The rewrite of Dodd-Frank went through at the end of May, which was mostly geared towards loosening regulation for small and mid-size banks. Tax reform and continued economic strength have also provided a positive backdrop for the sector this year.&nbsp;</p> <p class="MsoNoSpacing">While there have been a lot of positives for the sector, some analysts are starting to question how long the economy can grow at this pace, and how long corporations and consumers ...</p><p><a href=https://www.benzinga.com/news/earnings/18/10/12434944/flat-yield-curve-geopolitical-uncertainty-weighing-on-financials-ahead- alt=Flat Yield Curve, Geopolitical Uncertainty Weighing On Financials Ahead Of Q3 Earnings>Full story available on Benzinga.com</a></p> BAC C CME Earnings financial sector GS ICE JPM MA MS News PNC PYPL SPGI SQ TD Ameritrade V WFC Bonds Treasuries Federal Reserve Markets CME US12572Q1058 BAC US0605051046 C US1729674242 GS US38141G1040 ICE US45865V1008 JPM US46625H1005 MA US57636Q1040 MS US6174464486 PNC US6934751057 V US92826C8394 WFC US9497461015 PYPL SQ SPGI News Earnings Bonds Treasuries Federal Reserve Markets Benzinga Mon, 01 Oct 2018 18:26:06 +0000 JJ Kinahan 12434944 at https://www.benzinga.com What The Fed's September Comments Mean For The Future Of The Treasury Market https://www.benzinga.com/news/18/09/12425624/what-the-feds-september-comments-mean-for-the-future-of-the-treasury-market <p>Among the economic headlines for investors heading into Q4 is the drop in government bond prices and the corollary increase of treasury yields to new recent highs. Spurred by the Fed&rsquo;s first ever September interest rate hike, as well as indications of another increase before the year is out, the <a href="https://rjofutures.rjobrien.com/futures-markets/interest-rates/?cid=70144000001EuMz" style="text-decoration:none">interest rate markets</a> have suddenly been sent scrambling with the realization that the 10-year economic boom period might finally be taking a backseat to inflationary concerns.</p> <p>The recent moves in the 10-year and 30-year treasury market&rsquo;s prices and yields are particularly interesting given that they are coming at an unique economic and historic moment. The underlying narrative from the Fed is that rates are being stepped up to a target of around 3-3.5 percent by 2020 as the economy chugs along ...</p><p><a href=https://www.benzinga.com/news/18/09/12425624/what-the-feds-september-comments-mean-for-the-future-of-the-treasury-market alt=What The Fed&#039;s September Comments Mean For The Future Of The Treasury Market>Full story available on Benzinga.com</a></p> Interest Rates News RJO Futures Bonds Futures Treasuries Federal Reserve Markets News Bonds Futures Treasuries Federal Reserve Markets Benzinga Fri, 28 Sep 2018 15:20:04 +0000 Chris Dier-Scalise 12425624 at https://www.benzinga.com