That's what a lot of people have been thinking but the word's out that the Fed's lost its magical powers on economic growth--
--and we're going into this new downturn with no ammo left.
That's what a lot of people have been thinking but the word's out that the Fed's lost its magical powers on economic growth--
--and we're going into this new downturn with no ammo left.
I had read something about QE having lost its ability to artificially undergird/stimulate the economy. My guess is they’ll try higher than 85B before they give up on it. They’ll go to 100B maybe. That’ll send the market soaring.
It’s conceivable that the exit strategy is to let the republicans win the 2016 election and blame the market crash and hyper-inflation on them. Hillary shouldn’t be so confidant of victory.
KCG: THE LOOK…May 1st, 2014
U.S. stock-index futures were little changed, after the Dow Jones Industrial Average climbed to a
record yesterday, as investors awaited data on jobless claims and manufacturing.
DirecTV rose 8.2 percent in early New York trading after a report said AT&T Inc. approached the satellite-television company about a possible acquisition. Yelp Inc. gained 8.7 percent after raising its forecast for 2014 revenue. Sprint Corp. rallied 6.1 percent after a report said it plans to pursue a bid for T-Mobile US Inc. Viacom Inc. may move after a report that it will buy the U.K.’s Channel 5. and posting second-
quarter profit that beat projections.
Futures on the Standard & Poor’s 500 Index expiring in June added less than 0.1 percent to 1,878.3 at 7:38 a.m. in New York. Dow contracts were unchanged at 16,511. The 30-stock equity gauge rose 0.3 percent yesterday, topping the previous record it reached on Dec. 31.
“The waters are never completely clear of tips of icebergs to hit markets or economies, but things are optimistic for the U.S.,” Nick Beecroft, the London-based chairman and senior market analyst at Saxo Capital Markets U.K. Ltd., said by telephone. “Although the Ukrainian situation is very disturbing, for a software developer in Palo Alto or a pharma company in the Midwest, it must seem a million miles away. I don’t think it will derail the U.S. economy.”
The S&P 500 posted a 0.6 percent gain in April as better-than-estimated economic data and corporate results offset escalating tensions between the U.S. and Russia over the latter’s intentions on Ukraine.
Data at 8:30 a.m. in Washington may show first-time claims for unemployment benefits fell to 320,000 in the week to April 26, from 329,000 in the previous period, according to economists polled by Bloomberg. A Labor Department report tomorrow may show employers added 215,000 workers in April, the most since November, according to economists’ projections.
A separate report from the Institute for Supply Management at 10 a.m. may show a gauge of manufacturing in the U.S. increased to 54.3 in April, from 53.7 in March, economists projected in a survey. Fifty is the dividing line between expansion and contraction.
U.K. stocks rose for a fourth day as Lloyds Banking Group Plc led banks higher on better-than-
estimated earnings. Commodities fell after Chinese manufacturing expanded less than forecast.
The FTSE 100 Index of U.K. shares rose 0.3 percent at 7:50 a.m. in New York in the longest winning streak since February. Markets from China to Germany and France are closed for holidays.
• Support:1876, 1868, 1855
• Resistance:1888, 1893, 1905
U.S. auto sales running at the fastest pace since 2007 are driving up imports of palladium, according to Barclays Plc.
The CHART OF THE DAY shows palladium exports from Switzerland to the U.S. climbed to the highest since October 2012 last month, using data from Barclays and the Swiss Federal Customs Administration. Russia, the biggest producer of the metal used in automobile catalytic converters, typically exports the metal to Switzerland for storage.
“Switzerland remained a net exporter of palladium in March with exports reaching 180,000 ounces, nearly double year over year,” Christopher Louney and Suki Cooper, analysts at Barclays, said in an April 25 report. “The notably high shipments to North America point towards improving auto demand.”
Palladium rose 13 percent this year to $807.88 an ounce, beating gains in gold, platinum and silver and heading for the best start to a year since 2010. U.S. cars and light trucks sold in March at a 16.3 million annualized rate, the most since May 2007 and up from 15.3 million in February.
Palladium used in auto catalysts accounted for 72 percent of demand last year, according to London-based Johnson Matthey Plc, which has produced one of every three of the devices. North America was the biggest user of palladium for catalysts, with a 26 percent share, Johnson Matthey data show.