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.
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(Excerpt) Read more at businessinsider.com ...
And.......who says the market is stacked against the “little guy?”
Answer: The “little guy.”
ho hUm,, another day, another roller coaster ride.
That’s what I’m worried about.....
Short the retail stocks I guess would be a good way to go.
Yet the dollar has been rising despite all the “money printing”... Hmmmmm...
Someday the bubble will burst. I guess they’re waiting for a Republican administration.
ALBERT EDWARDS: A $1,000 For A Wicker Basket? Sell Everything And Run For Your Lives!
In the land of the blind, the one-eyed man is king.
Meaning: If the economy falls apart in Argentina, locals trade their currency for dollars. The same applies all over the world, when conditions look bad, don’t put your rupees in the bank, convert them to dollars.
People will also sell many marginal or “hot” investments, and convert the proceeds to US$.
Gold will initially fall as investors sell out of anything liquid to get US$.
Reason: You will need to buy food, medicine and fuel, and the currency of choice world-wide is the US$.
Now, the dollar is losing value in the long-term because the government refused to stop printing and acting as the first spender of printed money.
Oh......... Okay..........
Methinks I’ve been sandbagged.
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