The Fed is expected to hike rates in December as the stars have aligned over the past few weeks: the Fedspeak, the economic data and markets are all priced-in and well anticipated and nobody would be surprised, said John Bellows of Western Asset Management. But the bigger question remains what would drive long-term bond yields and it’s unlikely a 25 …
One Man’s Opinion: Will Negative Reports Before The December Fed Meeting Derail A Rate-Hike This Year?
The latest non-farm payroll report has come as a relief for most market observers and makes Federal Reserve chair Janet Yellen’s job easier, said Diana Swonk, chief economist at Mesirow Financial. The 271,000 job additions in October not only dramatically reduce chances of a dissent (for a rate-hike) in her inner circle, but also among Charlie Evans (out of Chicago …
One Man’s Opinion: Are Inventory Fluctuations Part Of Business Cycles?
The latest headline gross domestic product number might be disappointing, but beyond the visible decline there is positive story as consumer spending was robust and businesses were still investing – albeit at a slower pace than what was witnessed in the second quarter, said Lindsey Piegza, chief economist at Stifel Fixed Income. The big question, however, remains if the US …
One Man’s Opinion: Is Manufacturing The Only Weak Spot In The US Domestic Economy?
The earnings estimate from US companies have been quite encouraging though a relatively small number of S&P 500 companies have reported their results thus far, said Luke Tilley, chief economist at Wilmington Trust. While revenues have failed to meet expectations, earnings have managed to beat expectations although the expectations were revised down a little bit, he noted. Asked to explain …
One Man’s Opinion: Will China’s Growth Cross 7 Percent Again?
Another market sell-off depends on the Fed’s next move, because the current situation very strongly echoes the conditions of 1998, said Jonathan Wilmot, head of macro investments at Credit Suisse Asset Management. Former Fed chairman Alan Greenspan had said America was an island of prosperity in a sea of difficulty and that’s applicable right now. The Federal Reserve better wait …
One Man’s Opinion: Will Consumer Discretionaries Lead In Earnings Growth In Q3?
The S&P 500, according to Estimize, is likely to see a negative earnings growth of 2-1/2 percent and revenues growth of negative 1.7 percent. In the last quarter, earnings growth expectations were 3.5 percent, but it ended up with about 1 percent. The peak-rate currently stands at about 66 percent for about 22 companies that have reported third-quarter results and …