I think we can call this a data dependent market for Friday
The trend in U.S. financial markets this week has pointed down on data that shows the U.S. economy is slowing. Certainly the disappointing numbers in both the manufacturing and services Purchasing Managers Indexes have supported that conclusion. That could all change...
PMI Services disappoints; stocks recover on Fed cut speculation
The Institute for Supply Management's Purchasing Managers Index for Services fell to 52.6 for September, according to reports this morning, October 3. That was a drop from August's 56.4 and below the 55.0 that economists surveyed by Bloomberg had projected. That left...
Wall Street puts two more 2019 interest rate cuts back on the table
Yesterday's disappointing Purchasing Managers Index news on U.S. manufacturing has put two interest rate cuts from the Federal Reserve back on Wall Street's expectations.(Economists had expected that the PMI number for September would show the manufacturing sector...
Once more (at least) into the breach–Fed to put up to another $75 billion into money markets tomorrow in continuing attempt to end liquidity crisis
Here's the rather bland statement from the Federal Reserve Bank of New York: "In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase...
Federal Reserve cuts interest rates by 25 basis points; Trump, financial markets disappointed by guidance on future cuts
Today the Federal Reserve lowered its main interest rate another 25 basis points to a range of 1.75% to 2%. To say that the Fed's Open Market Committee was divided on the decision would be an extreme understatement: Five officials wanted to keep rates unchanged, while...
If one Fed $53 billion intervention to supply cash to money markets is good on Tuesday, wouldn’t a second $75 billion surge of cash on Wednesday be even better?
On Tuesday the Federal Reserve intervened to supply liquidity to the short-term market for Money Market funds by buying $53.2 billion in securities. Late Tuesday the Fed said it was prepared to buy another $75 billion in the report market Wednesday morning. The...
This is important: Federal Reserve spent $53.2 billion on Tuesday to stabilize Money Market markets
On Tuesday the Federal Reserve bought $53.2 billion of short-term securities to stabilize the market for money market securities. A funding shortage on Monday and Tuesday had led rates on overnight general collateral repurchase agreements to climb as high as 10% and...
Special Report: 10 long-term picks for a short-term market (first seven picks)
(A word of apology. I hadn't realized that I had written about this Special Report but never posted it until several readers brought it to my attention last week. My initial reaction was "Impossible! Of course I'd posted it." But checking showed I hadn't. It took...
Saturday Night Quarterback says, For the week ahead expect…
...what else but the Federal Reserve. The U.S. central bank's interest rate setting body, the Open Market Committee, Â meets on Wednesday, September 18. As of Friday, September 13 the Fed Funds Futures market was pricing in a 78.5% chance of a 25 basis point cut in the...The financial markets–and especially Treasuries–continue their September trend reversal
One way to understand of the recent market action--one way that makes sense to me--is to think of it as a big short squeeze. The drop in Treasury yields and the climb in Treasury prices went to far in August with Treasuries showing their biggest monthly gain in the...
August jobs report disappoints; more evidence that U.S. economy is slowing
The U.S. economy added 130,000 jobs in August. Economists surveyed by Briefing.com had expected 171,000 new jobs. Once you subtracted the 25,000 new temporary jobs added by the government for the 2020 census, the results were even more disappointing with the private...Jim’s Stock Alerts
Download Jim’s eBook for Free
