Federal Reserve https://www.benzinga.com/views/taxonomy/term/125743 en Pro: Federal Reserve Will Need To 'Explain Themselves To The History Books' https://www.benzinga.com/federal-reserve/19/08/14283953/pro-federal-reserve-will-need-to-explain-themselves-to-the-history-books <p>The <a href="https://www.benzinga.com/federal-reserve">Federal Reserve</a>&nbsp;has &quot;some explaining to do&quot; if it speeds up the pace of interest rate cuts, <a href="https://www.cnbc.com/2019/08/15/trump-wants-fed-rate-cuts-unclear-if-they-would-help.html">CNBC quoted</a> Chris Rupkey, chief financial economist at MUFG, as saying in a note.</p> <h3>What Happened</h3> <p>The Federal Reserve&#39;s recent interest rate cut in late July looks &quot;more out of line than ever&quot; given no immediate signs of a recession, the economist wrote.</p> <p>The central bank faces pressure from President Donald Trump, who publicly blasted Fed Chairman Jerome Powell on multiple occasions to lower rates even more.</p> <p>If the Fed cuts ...</p><p><a href=https://www.benzinga.com/federal-reserve/19/08/14283953/pro-federal-reserve-will-need-to-explain-themselves-to-the-history-books alt=Pro: Federal Reserve Will Need To &#039;Explain Themselves To The History Books&#039;>Full story available on Benzinga.com</a></p> Chris Rupkey CNBC Donald Trump Interest Rates Jerome Powell Lewis Alexander Michael Pento MUFG Nomura Pento Portfolio Strategies SPY Federal Reserve Media SPY US78462F1030 Federal Reserve Media Benzinga Fri, 16 Aug 2019 15:08:28 +0000 Jayson Derrick 14283953 at https://www.benzinga.com The Only Certainty For Equity Markets And Transportation Stocks Is Uncertainty https://www.benzinga.com/news/19/08/14261972/the-only-certainty-for-equity-markets-and-transportation-stocks-is-uncertainty <p>Trade rhetoric has the equity markets in flux since the latest tariff warning was announced at the beginning of August. Notably, sectors with meaningful trade exposure to China, like the transportation stocks, are feeling the pressure.</p> <p>Just as some equity analysts were providing commentary about potentially becoming more constructive on the transportation stocks, the next shoe dropped. While investors were purportedly sniffing around the space looking for bargains, likely not interested in a full basket approach to owning the transports, a new round of Chinese tariffs were announced, taking the breath out of the transports.</p> <p>The "not as bad as feared" earnings season was in the final innings. Some investors appeared poised to take management teams&#039; lowered guidance (and analysts lowered earnings estimates) for 2019 and 2020 in stride. Then on August 1, 2019, President Trump announced a 10 percent tariff on the remaining $300 billion of Chinese imports set to start on September 1.</p> <p>This round of tariffs has been a little harder for equity markets to swallow as they are more likely to hit the consumer, the centerpiece of what has been a sustained period of economic growth in the United States. Markets appear spooked as the potential for increased fees on consumer durables like electronics, apparel and household goods have some experts predicting the consumer will be the one to eat at least some of the cost (depending on fluctuations with the yuan). Further, there is greater concern that consumers may meaningfully tighten their belts if trade tensions were to capitulate further and tariffs were to increase to a higher rate.</p> <h4>Recent volatility</h4> <p>Equity markets have been unsettled since the latest tariff threat on Chinese goods, experiencing more than a week&#039;s worth of multi-percentage point swings. The markets saw real degradation on Monday, August 5 after investors had the weekend to formulate a strategy. The Dow Jones Industrial Average (<a href="https://finance.yahoo.com/quote/%5EDJI?p=%5EDJI&amp;.tsrc=fin-srch-v1">DJI</a>), the <a href="https://finance.yahoo.com/quote/%5EGSPC?p=%5EGSPC">S&amp;P 500</a> and the Dow Jones Transportation Average (<a href="https://finance.yahoo.com/quote/%5EDJT/">DJT</a>) were all 3 percent lower on the day. The markets got a little bit of a dead cat bounce on Tuesday, but opened 2 percent lower on Wednesday as global recession fears spiked when three more central banks joined in with rate cuts (New Zealand by 50 basis points, India by 35 basis points and Thailand by 25 basis points). However, that day&#039;s lower open was reversed with the near-600 point drop being erased. Thursday saw a 2 percent move higher, but that level was wiped out over the next two trading sessions.</p> <p>Then today, August 13, the Dow and S&amp;P 500 were up 1.5 percent on the Office of the U.S. Trade Representative&#039;s announcement that tariffs on certain items in categories like cellphones, laptops, video game consoles, toys, footwear, agricultural products and chemicals would be delayed until December 15.</p> <h4>Transports were seeing a rally pre-tariff talk</h4> <p>It appears that the truckload (TL) and less-than-truckload (LTL) stocks ...</p><p><a href=https://www.benzinga.com/news/19/08/14261972/the-only-certainty-for-equity-markets-and-transportation-stocks-is-uncertainty alt=The Only Certainty For Equity Markets And Transportation Stocks Is Uncertainty>Full story available on Benzinga.com</a></p> CVTI Freight Freightwaves HTLD JBHT KNX Logistics News Supply Chain transportation stocks Federal Reserve Markets General CVTI US22284P1057 HTLD US4223471040 JBHT US4456581077 KNX US4990641031 News Federal Reserve Markets General Benzinga Wed, 14 Aug 2019 13:57:24 +0000 FreightWaves 14261972 at https://www.benzinga.com Wednesday's Market Minute: Free Lunch, Courtesy Of The Yield Curve https://www.benzinga.com/news/19/08/14266033/wednesdays-market-minute-free-lunch-courtesy-of-the-yield-curve <p>One way to view markets is that they are one giant feedback loop. A reflexive echo chamber, per the description of legendary investor George Soros. And, boy, is today&#39;s echo loud.</p> <p>While the Treasury market yield curve has been flattening for months, the final straw for economists landed this morning as the difference between the 2-year and 10-year yield went negative. This has happened before every recession. Now, the question is what Jay Powell does about it. One side says it&#39;s a mistake if he doesn&#39;t make the necessary interest-rate cuts to try and prevent recession. The other says he shouldn&rsquo;t take ...</p><p><a href=https://www.benzinga.com/news/19/08/14266033/wednesdays-market-minute-free-lunch-courtesy-of-the-yield-curve alt=Wednesday&#039;s Market Minute: Free Lunch, Courtesy Of The Yield Curve>Full story available on Benzinga.com</a></p> News TDAmeritrade Treasury Yield yield curve Treasuries Federal Reserve Markets General News Treasuries Federal Reserve Markets General Benzinga Wed, 14 Aug 2019 13:47:13 +0000 TD Ameritrade Network 14266033 at https://www.benzinga.com Trump Again Calls For 'Substantial Fed Cuts' In Series Of Tweets https://www.benzinga.com/general/politics/19/08/14232120/trump-again-calls-for-substantial-fed-cuts-in-series-of-tweets <p>The <strong>SPDR S&amp;P 500 ETF Trust</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) is down more than 2% so far in the month of August after President Donald Trump threatened to impose new 10% tariffs on $300 billion worth of Chinese imports not already covered under the existing tariffs.</p> <p><a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/08/14201111/market-sell-off-accelerates-following-china-trade-war-retaliation">In retaliation</a>, China has halted all purchases of U.S. agricultural products and has allowed the yuan to devalue to 10-year lows against the U.S. dollar to offset the impact of the tariffs.</p> <h3>Trump Blames Fed</h3> <p>Trump again took to Twitter on Thursday morning, blaming the Federal Reserve for what he says is an unfair competitive landscape for U.S. businesses.</p> <p>Despite the Federal Reserve cutting interest rates by 0.25% on July 31, Trump said Thursday American companies like <strong>Caterpillar Inc. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cat#NYSE">CAT</a>), <strong>Boeing Co</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) and <strong>Deere &amp; Company</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/de#NYSE">DE</a>) can&rsquo;t compete internationally when the Federal Reserve is keeping interest rates and the value of the dollar high.</p> <p>&ldquo;We have the greatest companies...in the world, there is nobody even close, but unfortunately the same cannot be said of our Federal Reserve,&rdquo; Trump tweeted, adding ...</p><p><a href=https://www.benzinga.com/general/politics/19/08/14232120/trump-again-calls-for-substantial-fed-cuts-in-series-of-tweets alt=Trump Again Calls For &#039;Substantial Fed Cuts&#039; In Series Of Tweets>Full story available on Benzinga.com</a></p> BA CAT DE Donald Trump FXI GLD Interest Rates SPY tariffs Politics Top Stories Economics Federal Reserve General FXI US4642871846 GLD US78463V1070 SPY US78462F1030 BA US0970231058 CAT US1491231015 DE US2441991054 Politics Top Stories Economics Federal Reserve General Benzinga Thu, 08 Aug 2019 16:10:47 +0000 Wayne Duggan 14232120 at https://www.benzinga.com Steadier Ground As Yields Stabilize, But Aftershocks Can't Bee Ruled Out https://www.benzinga.com/news/earnings/19/08/14231133/steadier-ground-as-yields-stabilize-but-aftershocks-cant-bee-ruled-out <p>After yesterday&rsquo;s impressive comeback, global markets feel like they&rsquo;re on better footing this morning with bond yields moving up.</p> <p>That doesn&rsquo;t mean it&rsquo;s OK to get complacent about possible aftershocks. The whiplash moves aren&rsquo;t necessarily over, with volatility still elevated. The Cboe Volatility Index (VIX) did fall below 20 this morning, but VIX is still way above last month&rsquo;s lows of under 12.</p> <p>China&rsquo;s currency is another potential source of worry. Beijing set the yuan a bit higher versus the dollar today, so maybe that&rsquo;s an olive branch amid all this tough talk. We&rsquo;ll see.</p> <p>European and Asian markets mostly climbed earlier Thursday, crude gained ground from Wednesday&rsquo;s eight-month low, and the 10-year U.S. Treasury yield is back above 1.72% after slipping under 1.6% briefly yesterday for the first time since 2016.</p> <p>It&rsquo;s the relentless slide in yields around the world that appears to have markets on edge amid worries about the global economic outlook as China and the U.S. continue to spar. We&rsquo;ll see if the higher yields this morning provide any relief for the Financial sector, which came under heavy pressure yesterday as yields sank.</p> <p>Anyone who feels confused about the markets after Wednesday&rsquo;s sharp reversal in stocks can be forgiven. It was a difficult day to get a read on things; no two ways about it. One lesson for long-term investors could be to try not to get diverted by all this daily noise and stick to the things that matter in the long term, particularly earnings reports. Watching every tick these days can be pretty stressful, and you don&rsquo;t want to make any moves based on fear.</p> <p>For short-term traders, the lesson might be to consider keeping things small. If anyone did something big yesterday, they probably had trouble sticking with it, because the market was like the Chicago weather: At one point or another, everyone was likely to be right.&nbsp;</p> <h3>Comeback Kid</h3> <p>A 600-point slide in the Dow Jones Industrial Average ($DJI) early Wednesday made it look like it might be one of those days. However, after failing to take out Monday&rsquo;s lows, the market made a quick reversal that accelerated throughout the day and might turn out to be supportive going forward from a technical perspective.</p> <p>The reversal partly could reflect failure to make new lows, but also could have been the result of yields starting to stabilize and the fact that a lot of cash remains on the sidelines apparently ready to go back into stocks if the price looks right. Materials, Staples, and Real Estate ended up with strong gains, but the flattening yield curve helped keep Financials on the defensive.&nbsp;</p> <p>It&rsquo;s tempting to say a turnaround like Wednesday&rsquo;s means danger was averted, but it&rsquo;s not necessarily healthy if technical strength now in the market sends stock indices straight up from here. If that happens, it could lead to selling that might take the S&amp;P 500 (SPX) back to revisit the week&rsquo;s low just under 2825 one more time. The SPX has tested that level twice this week and popped back both times.&nbsp;</p> <p>There does seem to be some natural inclination to buy these dips, and maybe it goes back to the situation with China. Instead of what investors used to call a &ldquo;Fed put&rdquo;&mdash;meaning the Fed would lower rates if stocks fell too low&mdash;what might be out there now is a &ldquo;China put.&rdquo; According to this school of thought, chances for a trade deal with China might take the starch out of bears when markets ...</p><p><a href=https://www.benzinga.com/news/earnings/19/08/14231133/steadier-ground-as-yields-stabilize-but-aftershocks-cant-bee-ruled-out alt=Steadier Ground As Yields Stabilize, But Aftershocks Can&#039;t Bee Ruled Out>Full story available on Benzinga.com</a></p> BA China Earnings LYFT News Q2 earnings TDAmeritrade tech stocks UBER Global Federal Reserve Markets General BA US0970231058 UBER LYFT News Earnings Global Federal Reserve Markets General Benzinga Thu, 08 Aug 2019 14:33:11 +0000 JJ Kinahan 14231133 at https://www.benzinga.com Are You Still Trying To "Fade" The Bond Rally? https://www.benzinga.com/news/19/08/14210290/are-you-still-trying-to-fade-the-bond-rally <p>For weeks, if not months, I have been reading one bearish bond article after another. &nbsp;In fact, many of these same writers have been arguing with me for months about the bond rally I expected back in November of 2018. &nbsp;One suggests that this rally is really a &ldquo;fake,&rdquo; whereas another has been strongly suggesting that investors fade this rally, with many more supporting their opinions. The problem is that these analysts have been trying to &ldquo;fade&rdquo; this rally for the last 10-15% up. Yet, I will gladly bank my &ldquo;fake&rdquo; 20% profits on this trade.</p> <p>As each week goes by, I continue to chuckle about how many people do not understand the context of the markets upon which they opine. Remember how certain analysts and investors were that rates were only headed higher back in November of 2018?</p> <p><img src="https://ci5.googleusercontent.com/proxy/bNH0oaL5ByVZ097zDNipMSa6txDrmyMtshjkY1QV7IfS9dOw-lAsQu4S2SMdD2VfqEP59g81oFGkii30Xi655zZyztnTmWiBVJYsRdndERMXb7SVYI5QeRj4QdPx_4S3bPDhwrHI3EiyvTnpX3zdwz_i=s0-d-e1-ft#https://www.fatrader.com/images/charts/201908/full-08678813e161bb855569d22ea8d620ff3e7512e0.png" style="height:751px; width:800px" /></p> <p>And, all these same analysts and investors that did not see this rally coming have been fighting it all the way up.</p> <p>But, those that followed our work and got into bonds when TLT was in the 112-113 region have now made 20% on that trade since November of 2018. In fact, at each stage of the rally, and especially since I first told my subscribers that I was going long TLT, many of my own subscribers fought me along the way.&nbsp;</p> <p>Going long bonds during the last 10 months has been one of the most hated trades, yet one of the most profitable.&nbsp;Unfortunately, the mantra &ldquo;you cannot fight the Fed&rdquo; kept many out of this trade.&nbsp;Isn&rsquo;t it now funny how the Fed was the one to recently capitulate as it recognized it could not fight the market?</p> <p>Let me take a moment to recap our history and perspective on bonds. For those that followed our work over the years, you would know that we called for a top to the bond market on June 27, 2016, with the market striking its multi-year highs within a week of our call. Right after that top call, ...</p><p><a href=https://www.benzinga.com/news/19/08/14210290/are-you-still-trying-to-fade-the-bond-rally alt=Are You Still Trying To &quot;Fade&quot; The Bond Rally?>Full story available on Benzinga.com</a></p> FATRADER News Bonds Federal Reserve Markets General News Bonds Federal Reserve Markets General Benzinga Tue, 06 Aug 2019 14:25:44 +0000 Avi Gilburt 14210290 at https://www.benzinga.com Stable Tone Prevails After Monday Rout As Disney Earnings Loom After Close https://www.benzinga.com/news/earnings/19/08/14209853/stable-tone-prevails-after-monday-rout-as-disney-earnings-loom-after-close <p>Stabilization is the word of the day. The Chinese currency stabilized overnight, and so did stocks around the world.</p> <p>That doesn&rsquo;t mean we&rsquo;re out of the woods. A trade deal with China is probably just as far away as it was yesterday, and it&rsquo;s unclear what the next step is going to be. <strong>Goldman Sachs Group Inc&nbsp;</strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) says it doesn&rsquo;t expect the two countries to resolve their differences before the end of the year. Caution could be another word to keep in mind, and rallies in gold and U.S. Treasuries likely reflect plenty of that.</p> <p>One thing that&rsquo;s becoming more clear is that this isn&rsquo;t a one-day affair. That&rsquo;s not necessarily bad, because it might be healthier for the markets that way. We had some volatility and that smashed things around yesterday. The situation looks better so far today, but you never know. Things might change.</p> <p>After yesterday&rsquo;s 3% decline, it feels like July and its record highs never happened. The flight from risk that began last week and picked up steam Monday has stocks back at levels last seen in June. Stocks tanked in overnight trading after the U.S. Treasury Department&rsquo;s decision to declare China a currency manipulator, only to turn around and go back into the green after China set its currency at a level above expectations.</p> <p>As of early Tuesday, the Chinese Yuan was trading at 7.02 to the dollar, still near its weakest point in a decade but a little firmer than the 7.05 level that traded in the overnight hours.</p> <p>China not further weakening its currency doesn&rsquo;t seem like a really stable foundation for a rally, but strength ahead of the opening bell probably reflects some relief that things aren&rsquo;t even worse. It was an encouraging development, but the two countries are still pointing fingers at each other and markets are the monkey in the middle.</p> <p>Anxiety still seems elevated, but maybe a little less than last night. Crude rose a bit, which might reflect hopes for improved demand. The Cboe Volatility Index (VIX) remained above 20, but was down from levels above 22 seen yesterday. The bond market &nbsp;still looks a bit nervous, with the 10-year Treasury yield up just a bit to 1.75%. Stocks start the session down 6% from last month&rsquo;s all-time highs.</p> <p>Key technical support at the S&amp;P 500&rsquo;s (SPX) 200-day moving average just under 2800 got breached during the overnight plunge (see chart below). The SPX bounced back pretty convincingly after that, but the area around 2800 has a lot of support and could be an important level to watch if stocks start falling again.</p> <p>The rout in equities over the last week turned things around as far as rate cut expectations, which had pulled back last Wednesday after Fed Chairman Jerome Powell sounded less dovish than many had expected. Odds are 100% for a rate cut in September, with 22% odds of a 50 basis-point slice, according to CME Group futures. By year-end, futures show a nearly ...</p><p><a href=https://www.benzinga.com/news/earnings/19/08/14209853/stable-tone-prevails-after-monday-rout-as-disney-earnings-loom-after-close alt=Stable Tone Prevails After Monday Rout As Disney Earnings Loom After Close>Full story available on Benzinga.com</a></p> BYND DIS disney Earnings GS KO Lyft LYFT News PEP PG SHAK TD Ameritrade tech stocks Uber UBER IPOs Federal Reserve Markets Tech General DIS US2546871060 GS US38141G1040 KO US1912161007 PEP US7134481081 PG US7427181091 SHAK UBER LYFT BYND News Earnings IPOs Federal Reserve Markets Tech General Benzinga Tue, 06 Aug 2019 13:54:04 +0000 JJ Kinahan 14209853 at https://www.benzinga.com Former Federal Reserve Chairs Pen Op-Ed: 'America Needs An Independent Fed' https://www.benzinga.com/general/politics/19/08/14209478/former-federal-reserve-chairs-pen-op-ed-america-needs-an-independent-fed <p>A handful of former <a href="https://www.benzinga.com/federal-reserve">Federal Reserve</a> leaders deplored the central bank&#39;s current leadership to act independently and implement policies in the best interests of the economy.</p> <h3>What Happened</h3> <p>Former Fed leaders Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen wrote in a Wall Street Journal op-ed they all made decisions based on nonpartisan and nonpolitical factors. Domestic and international history is full of examples where an economy performs at its best when central figures refuse to cave in to near-term political pressures and implement policies ...</p><p><a href=https://www.benzinga.com/general/politics/19/08/14209478/former-federal-reserve-chairs-pen-op-ed-america-needs-an-independent-fed alt=Former Federal Reserve Chairs Pen Op-Ed: &#039;America Needs An Independent Fed&#039;>Full story available on Benzinga.com</a></p> Alan Greenspan Ben Bernanke DIA Janet Yellen Paul Volcker SPY Wall Street Journal Politics Federal Reserve Media General DIA US78467X1090 SPY US78462F1030 Politics Federal Reserve Media General Benzinga Tue, 06 Aug 2019 13:26:08 +0000 Jayson Derrick 14209478 at https://www.benzinga.com This Day In Market History: Paul Volcker Takes Over As Fed Chair https://www.benzinga.com/general/education/19/08/12146098/this-day-in-market-history-paul-volcker-takes-over-as-fed-chair <p><em>Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.</em></p> <h3>What Happened?</h3> <p>On this day 40 years ago, Paul Volcker took over as chairman of the Federal Reserve.</p> <h3>Where The Market Was</h3> <p>The Dow Jones Industrial Average closed at 848.55 and the S&amp;P 500 traded at 104.30. Today, the Dow is trading at 25,717&nbsp;and the S&amp;P 500 is trading at 2,844.</p> <h3>What Else Was Going On In The World?</h3> <p>In 1979, cable sports network ESPN launched. A mob of protectors destroyed the U.S. embassy in ...</p><p><a href=https://www.benzinga.com/general/education/19/08/12146098/this-day-in-market-history-paul-volcker-takes-over-as-fed-chair alt=This Day In Market History: Paul Volcker Takes Over As Fed Chair>Full story available on Benzinga.com</a></p> DIA Paul Volcker SPY this day in market history Volcker Rule Education Top Stories Federal Reserve Markets General DIA US78467X1090 SPY US78462F1030 Education Top Stories Federal Reserve Markets General Benzinga Tue, 06 Aug 2019 11:00:00 +0000 Wayne Duggan 12146098 at https://www.benzinga.com Exxon Earnings Surprise To The Upside A Day After Oil Prices Tank https://www.benzinga.com/news/earnings/19/08/14191732/exxon-earnings-surprise-to-the-upside-a-day-after-oil-prices-tank <p>It&rsquo;s Employment Report day, a day that often marks the biggest economic news of the month. This time around, however, the report might get the bronze medal, behind the Fed meeting and yesterday&rsquo;s tariff bombshell. For the most part, the jobs report fell in line with expectations (see more below).</p> <p>Arguably, the biggest issue for investors the trade dispute between the United States and China, which entered another phase yesterday as President Trump announced that the United States would slap a 10% tariff on $300 billion in Chinese goods starting Sept. 1.</p> <h3>Trade War, Fed Expectations, Jobs Report</h3> <p>It seems that market participants are in need of resetting their expectations about a potential resolution to the trade war because that cloud may not dissipate for some time. Wild swings based on the latest developments may need to give way to a calmer approach that accepts the trade tension as a fact of life for a longer period of time than people were hoping.</p> <p>Another issue the market may need to adjust its expectations about is the Fed&rsquo;s monetary policy stance. Investors have been worried that this week&rsquo;s rate cut may be a one-and-done type event rather than the beginning of a prolonged rate-cutting cycle.</p> <p>In inflation-related news this morning, a government report showed that average hourly earnings, a key component of costs for businesses, rose 0.3% in July, matching a Briefing.com consensus expectation. The headline nonfarm payrolls number showed jobs growth of 164,000 during the month, slightly ahead of a Briefing.com consensus that was projecting that 160,000 jobs would be created in July.&nbsp;</p> <p>Even though Fed Chairman Jerome Powell earlier in the week tried to walk back initial comments that many interpreted as him saying this week&rsquo;s cut was a one-and-done easing, he also said the Fed&rsquo;s rate-setting committee doesn&rsquo;t see the economy being in a position where the Fed funds rate needs to be cut a lot. He even referenced the possibility that rates could go back up at some point. Also, two voters at the committee this week voted against the decision, meaning further easing likely faces strong opposition.</p> <p>That leaves market participants trying to sort out their expectations of the Fed&rsquo;s path on interest rates for the rest of the year. In times of uncertainty like this where the market is in the process of trying to gain clarity on ...</p><p><a href=https://www.benzinga.com/news/earnings/19/08/14191732/exxon-earnings-surprise-to-the-upside-a-day-after-oil-prices-tank alt=Exxon Earnings Surprise To The Upside A Day After Oil Prices Tank>Full story available on Benzinga.com</a></p> Earnings Jobs Report News tariffs TDAmeritrade US-China Trade War Utilities XOM Eurozone Commodities Federal Reserve Markets General XOM US30231G1022 News Earnings Eurozone Commodities Federal Reserve Markets General Benzinga Fri, 02 Aug 2019 13:58:53 +0000 JJ Kinahan 14191732 at https://www.benzinga.com Friday's Market Minute: When An Unstoppable Rate Cut Meets An Immovable Tariff https://www.benzinga.com/government/19/08/14191633/fridays-market-minute-when-an-unstoppable-rate-cut-meets-an-immovable-tariff <p>The past two days have delivered two huge bombshells for markets. On Wednesday, the Fed announced its decision to cut the interest rate by 25 basis points, which most investors expected. But yesterday, another more unexpected market driver entered the field when President Trump tweeted about introducing a new 10% tariff hike on Chinese goods entering the U.S. The result was yesterday&rsquo;s pullback in U.S. stock prices, with the four major indices plummeting as volatility skyrocketed.</p> <p>The question ...</p><p><a href=https://www.benzinga.com/government/19/08/14191633/fridays-market-minute-when-an-unstoppable-rate-cut-meets-an-immovable-tariff alt=Friday&#039;s Market Minute: When An Unstoppable Rate Cut Meets An Immovable Tariff>Full story available on Benzinga.com</a></p> Government News Rate Cuts Regulations tariffs TDAmeritrade Global Federal Reserve Markets General News Government Regulations Global Federal Reserve Markets General Benzinga Fri, 02 Aug 2019 13:48:28 +0000 TD Ameritrade Network 14191633 at https://www.benzinga.com Big Tech Faces Big Scrutiny: FTC Looking Into Facebook, Federal Reserve Pays Amazon A Visit https://www.benzinga.com/government/19/08/14190961/big-tech-faces-big-scrutiny-ftc-looking-into-facebook-federal-reserve-pays-amazon-a-visit <p>Big tech faces new scrutiny from regulatory and government bodies as the Federal Trade Commission is taking a close look at <strong>Facebook, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>)&#39;s acquisition history. Meanwhile, the Federal Reserve reportedly paid <strong>Amazon.com, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) a visit to examine its cloud business.</p> <h3>Facebook&#39;s Acquisition History</h3> <p>The FTC initiated an antitrust investigation to explore if Facebook bought potential <a href="http://benzinga.com/topic/social-media">social media</a> rivals to avoid future competition, <a href="https://www.wsj.com/articles/ftc-antitrust-probe-of-facebook-scrutinizes-its-acquisitions-11564683965?mod=hp_lista_pos1">sources told The Wall Street Journal</a>. The regulatory body is even looking to interview founders of some or all of the 90 ...</p><p><a href=https://www.benzinga.com/government/19/08/14190961/big-tech-faces-big-scrutiny-ftc-looking-into-facebook-federal-reserve-pays-amazon-a-visit alt=Big Tech Faces Big Scrutiny: FTC Looking Into Facebook, Federal Reserve Pays Amazon A Visit>Full story available on Benzinga.com</a></p> Amazon Web Services AMZN AWS banking cloud FB FTC Government Instagram News regulation Regulations security social media WhatsApp WSJ Federal Reserve Tech Media AMZN US0231351067 FB News Government Regulations Federal Reserve Tech Media Benzinga Fri, 02 Aug 2019 13:27:36 +0000 Jayson Derrick 14190961 at https://www.benzinga.com Implications Of Fed Rate Cut For Carriers And Shippers https://www.benzinga.com/news/19/08/14185259/implications-of-fed-rate-cut-for-carriers-and-shippers <p>Yesterday, Federal Reserve officials decided to add some additional stimulus into the economy, settling on a 25 basis point reduction in the federal funds rate at the conclusion of the July 30-31 Federal Open Market Committee (FOMC) meeting. This marks the first reduction in interest rates since 2008 and ends a monetary tightening cycle that began at the end of 2015. The effective federal funds rate will now fall between 2.0-2.25 percent, down from 2.25-2.5 percent. </p> <p>The rate cut was largely expected headed into the FOMC meeting, as Fed officials have been hinting about a cut in interest rates to stave off a significant slowdown in growth in the economy. However, markets reacted unfavorably after Fed Chairman Jerome Powell&#039;s press conference, in which he downplayed the idea of a prolonged cycle of interest rate decreases. Instead, Powell remarked, "We&#039;re thinking of it as essentially in the nature of a mid-cycle adjustment to policy," signaling that the Fed may not move interest rates down further unless economic conditions worsen.</p> <p><img alt="" src="https://s29755.pcdn.co/wp-content/uploads/2019/08/fedfunds.png" /></p> <p>The Fed had been tightening monetary policy since late-2015</p> <p><strong>How the federal funds rate affects the economy</strong></p> <p>The federal funds rate is the interest rate at which banks make overnight loans to other banks to maintain the reserve requirements set by the Federal Reserve. The FOMC sets a target range for the federal funds rate at the end of each of its eight meetings throughout the year, then conducts bond purchases or sales to keep the rate within range. </p> <p>Most businesses and consumers cannot borrow at the federal funds rate, but other interest rates in the economy are based on the federal funds rate. Short-term and adjustable interest rates, such as those found with credit cards, short-term business loans and adjustable mortgages, typically follow the federal funds rate. The Fed then stimulates the economy by lowering the cost of borrowing for consumers and businesses as they respond to the lower federal funds rate.   </p> <p>Longer term rates, such as auto or home loans, generally move in the same direction as the federal funds rate, but are not as closely ...</p><p><a href=https://www.benzinga.com/news/19/08/14185259/implications-of-fed-rate-cut-for-carriers-and-shippers alt=Implications Of Fed Rate Cut For Carriers And Shippers>Full story available on Benzinga.com</a></p> fed rates Freight Freightwaves News shipping Federal Reserve Markets General News Federal Reserve Markets General Benzinga Thu, 01 Aug 2019 18:48:27 +0000 FreightWaves 14185259 at https://www.benzinga.com EUR/USD: Fed-Fueled A Breakdown Of Critical Downtrend Support https://www.benzinga.com/news/19/08/14181179/eurusd-fed-fueled-a-breakdown-of-critical-downtrend-support <ul> <li><strong>EUR/USD has fallen sharply following the Fed&#39;s positive message.</strong></li> <li><strong>Further reactions to the Fed decision and preparations for the US jobs report are set to move markets.</strong></li> <li><strong>EUR/USD has broken below a long-last support line and may extend its decline.</strong></li> </ul> <p>EUR/USD has finally chosen where to go &ndash; down. The sharp downfall to the lowest since May 2017 has been fueled by another decision. The Federal Reserve has cut interest rates as expected but conveyed a confident message. Fed Chair Jerome Powell has stated that the outlook remains favorable and that the rate cut &ndash; the first since the crisis &ndash; is not the beginning of a long cycle of rate reductions.</p> <p>The Fed opted for introducing monetary stimulus in reaction to lower inflation and mostly concerns about global growth &ndash; but reiterated its stance that this is only an &quot;insurance&quot; cut. Moreover, two out of ten voting members dissented and preferred leaving the rates unchanged.<br /> The result of this &quot;hawkish cut&quot; was a considerable gain for the US ...</p><p><a href=https://www.benzinga.com/news/19/08/14181179/eurusd-fed-fueled-a-breakdown-of-critical-downtrend-support alt=EUR/USD: Fed-Fueled A Breakdown Of Critical Downtrend Support>Full story available on Benzinga.com</a></p> EUR/USD European Union FXStreet News Eurozone Forex Global Federal Reserve Markets General News Eurozone Forex Global Federal Reserve Markets General Benzinga Thu, 01 Aug 2019 14:09:24 +0000 Yohay Elam 14181179 at https://www.benzinga.com Still Weighing Fed's Words, But Yum, Verizon And GM Earnings Also In Focus https://www.benzinga.com/news/earnings/19/08/14180984/still-weighing-feds-words-but-yum-verizon-and-gm-earnings-also-in-focus <p>There&rsquo;s an old saying that the market is a greedy beast and always wants more.</p> <p>Proof of that might be yesterday&rsquo;s session, when stocks cratered despite the Fed lowering interest rates. The problem? Many investors wanted the Fed to signal the start of a prolonged rate-cutting cycle, not just a simple rate cut, but that didn&rsquo;t happen.</p> <p>At least that was the takeaway from Fed Chairman Jerome Powell&rsquo;s press conference, though he did try to walk back initial comments that many interpreted as him saying this was a one-and-done easing.</p> <p>The remark Powell made early in the press conference about how he saw this rate cut as a &ldquo;mid-cycle adjustment&rdquo; really seemed to do the most damage. Before he said that, the S&amp;P 500 Index (SPX) was down a handful of points. It quickly lost 30 points as investors weighed his words, falling back to well under 3000 by the end of the day.</p> <p>The Federal Open Market Committee (FOMC) doesn&rsquo;t see the economy being in a position where the Fed funds rate needs to be cut a lot, Powell added, and he even referenced the possibility that rates could go back up at some point. All of this left people a bit confused, and definitely less certain about two more rate cuts this year.</p> <p>Powell did clarify later in the press conference that he didn&rsquo;t specifically say it&rsquo;s &ldquo;one and done,&rdquo; and that initially seemed to help ease worries on Wall Street before stocks took a final belly flop to end the day Wednesday. Stock futures pointed toward a higher open Thursday as investors continued to weigh his words.</p> <p>One takeaway you could make from Powell&rsquo;s lack of a promise to cut rates again is positive: The economy is doing so well that rate cuts might not be needed. That kind of got lost in the shuffle yesterday, but maybe it&rsquo;s starting to be more clear to people this morning.</p> <h3>Jobs Report Up Next as Earnings Keep Exceeding Low Projections</h3> <p>All the excitement around the Fed could make tomorrow&rsquo;s jobs report a lot more fun to watch. Analysts expect to see 160,000 jobs created in July, according to consensus from Briefing.com. That would be down from 224,000 in June but still near the three-month average of 170,000 and a decent number.</p> <p>The thing to think about going into jobs is that if the headline number is really hot, does that add to peoples&rsquo; thoughts that maybe the Fed could get more hawkish?</p> <p>The wage picture is another thing to consider keeping an eye on. Analysts expect solid wage growth of 0.3% for the month. Average hourly earnings were up 3.1% year-over-year in June.</p> <p>The Fed meeting kind of buried some good news on earnings this week from <strong>Apple Inc&nbsp;</strong>(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and <strong>General Electric Company</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ge#NYSE">GE</a>). About 60% of S&amp;P 500 companies have reported so far, and we&rsquo;re still seeing around 77% of them beat analysts&rsquo; expectations. It is worth a reminder, though, that expectations were set at a low bar. Overall, earnings growth is roughly flat so far, compared with many early projections for losses of 1% to 3%.</p> <p>Also, a lot of companies have raised their guidance this earnings cycle, more than most analysts had thought. That&rsquo;s a good sign for corporate health, and long-term investors might want to watch those companies closely to see if they can carry through on their optimism.</p> <p>We&rsquo;re far from done with earnings, and Thursday is another busy day. <strong>Qualcomm Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qcom#NASDAQ">QCOM</a>) reported after the close and <strong>Verizon Communications Inc</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>) was among the companies reporting this morning. QCOM shares ...</p><p><a href=https://www.benzinga.com/news/earnings/19/08/14180984/still-weighing-feds-words-but-yum-verizon-and-gm-earnings-also-in-focus alt=Still Weighing Fed&#039;s Words, But Yum, Verizon And GM Earnings Also In Focus>Full story available on Benzinga.com</a></p> AAL AAPL BA CSX DAL Earnings FDX GE GM News Q2 earnings QCOM TDAmeritrade tech stocks UAL UNP UPS Verizon VZ YUM Global Federal Reserve Markets General AAPL US0378331005 QCOM US7475251036 BA US0970231058 CSX US1264081035 DAL US2473617023 FDX US31428X1063 GE US3696041033 GM US37045V1008 UNP US9078181081 UPS US9113121068 VZ US92343V1044 YUM US9884981013 UAL US9100471096 AAL News Earnings Global Federal Reserve Markets General Benzinga Thu, 01 Aug 2019 13:53:33 +0000 JJ Kinahan 14180984 at https://www.benzinga.com