Posted on 10/08/2014 1:20:38 PM PDT by blam
Myles Udland
October 8, 2014
Stocks rallied in a big way after the Minutes from the latest Federal Reserve monetary policy meeting showed that the Fed remains particularly cautious about raising interest rates in the face of a strengthening US dollar and a slowing global economy.
First, the scoreboard:
•Dow: 16,989.69, +270.3, (+1.6%)
•S&P 500: 1,968.86, +33.8, (+1.7%)
•Nasdaq: 4,469.60, +84.3, (1.9%)
And now, the top stories Wednesday:
1. The biggest story on Wednesday was the release of the Minutes from the Federal Reserve's September monetary policy meeting. The minutes were interpreted as "dovish," by the market, essentially meaning that the market now expects the Fed to wait longer than it currently expected to raise interest rates after the end of its current quantitative easing program, which is set to end this month. The Minutes also showed that a number of FOMC members were concerned about a strengthening US dollar and a slowing global economy. FOMC members also indicated that they want to eventually clarify that their forward guidance, or projections about when it might raise interest rates, will be data dependent.
2. Aluminum giant Alcoa was scheduled to report third quarter earnings after the market close on Wednesday, marking the unofficial start of third quarter corporate earnings season. Expectations were for Alcoa to report earnings per share of $0.23 on revenue of $5.85 billion. Overall, S&P 500 companies have pared their expectations for Q3 earnings, with earnings growth now expected to come in at 4.6%, down from 9% at the end of the second quarter. You can read Business Insider's full earnings preview here.
(snip)
(Excerpt) Read more at businessinsider.com ...
“. Aluminum giant Alcoa was scheduled to report third quarter earnings after the market close on Wednesday, marking the unofficial start of third quarter corporate earnings season. Expectations were for Alcoa to report earnings per share of $0.23 on revenue of $5.85 billion. “
Alcoa blew that out of the water. Earnings .31 Revs $6.28 b
The Minutes also showed that a number of FOMC members were concerned about a strengthening US dollar and a slowing global economy.
The slowing global economy has certainly happened.
Wouldn’t that cause the dollar to fall not rise?
Been out of pocket for a while (year end... :-0) but what is “VE”? Also any discussions about the strength of the dollar? Curious given all the “money printing”...
LOL. Are you going to tell these guys what VE is?
Verbal Easing.
Ha! That’s good.
The Fed can never raise interest rates again. Just think what that would do to the stock market, and especially government debt service payments
Just wait until the economy shuts down from EBOLA
After the election...After the election
Fed: "Let's go for it!!!
Nah. Somehow this ponzi game has got superior lasting. If it can be so out-of-wack as it is now why can't it continue. Besides, what can us sheeple do about it anyway but some preparations. Remember we have all of that gold in Fort Knox, right? (sarc)
“Wouldn’t that cause the dollar to fall not rise?”
Isn’t that the goal? Look at Japan, Zimbabwe, Argentina and other dynamic economies that first devalued their currency, and then experienced economic stillbirth.
Other countries (Germany, Switzerland, Singapore, etc.) believe in retaining the value of their currency.
Who wants to be like them when you can end up like Zimbabwe?
Much of the reason the economy sees growth is this continued sugar high of artificially low fed rates. Eventually we’re going see a Black Monday replay. The ride back to reality will be our fulfillment of the Chinese curse of living in interesting times.
“Just wait until the economy shuts down from EBOLA”
Or the more likely scenario of a series of attacks by ISIS.
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