Summers Says ‘Energizer Bunny’ Economy Signals Fed Hikes Failing
Christopher Anstey Bloomberg October 6, 2023 Ex-Treasury chief says Fed hikes may not be working as in past Summers says supply-demand imbalance helping drive yields up Former Treasury Secretary Lawrence Summers said the surge in US job growth last month is “great news” for now but also suggests the Federal Reserve’s interest-rate hikes aren’t working as they used to, […]
Underlying US inflation pressures subside in August
Lucia Mutikani Reuters September 29, 2023 Consumer spending increases 0.4% in August Core PCE price index gains 0.1%; up 3.9% year-on-year Underlying U.S. inflation pressures moderated in August, with the annual rise in prices excluding food and energy falling below 4.0% for the first time in more than two years, welcome news for the Federal […]
The Fed’s New Dot Plot After Its September Policy Meeting: Chart
Vince Golle Bloomberg September 20, 2023 The Federal Reserve’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate is 5.6%. The estimate for the end of 2024 increased to 5.1%. Fed policymakers on Wednesday held […]
Bank of America raises year-end S&P 500 price target, says rally will broaden out from here
Sarah Min Bloomberg September 20, 2023 Bank of America’s Savita Subramanian raised her 2023 year-end S&P 500 price target to 4,600, saying the rally will broaden out from here. The equity and quant strategist increased her S&P 500 target to 4,600 from 4,300 — placing it among the higher forecasts in CNBC’s Market Strategist survey. The […]
Rising Rates Make Big Companies Even Richer
James Mackintosh The Wall Street Journal September 15, 2023 The amount companies earn from cash in the bank is going up even as interest costs fixed during the pandemic stand still. The Federal Reserve jacked up interest rates to slow the red-hot economy. At some of the biggest and most secure companies, the moves had the opposite […]
Earnings Estimates Are Rising, a Welcome Sign for 2023 Market Rally
Karen Langley The Wall Street Journal September 10, 2023 Stock advances have surprised many investors, partly because expectations for company earnings hadn’t kept up. Wall Street expects corporate earnings to rebound after three quarters of year-over-year declines, a development that could put the stock market’s faltering rally on firmer footing. When the next reporting season […]
US services sector picked up in August, along with prices
Ann Saphir Reuters September 6, 2023 The U.S. services sector unexpectedly gained steam in August, with new orders firming and businesses paying higher prices for inputs — potential signs of still-elevated inflation pressures. The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI rose to 54.5 last month, the highest reading since February […]
Fed Officials Set to Double Growth Forecast Amid Strong Data (1)
Steve Matthews Bloomberg September 6, 2023 Resilience may lead to fewer rate cuts penciled in for 2024 Separate tracker from Atlanta Fed is at 5.6% for third quarter The US economy has been looking so solid lately that Federal Reserve officials will probably need to double their projection for growth in 2023 when they publish […]
Strategists Scramble to Catch Up as S&P 500 Rally Rumbles On
Farah Elbahrawy Bloomberg August 25, 2023 Oppenheimer’s Stoltzfus raises year-end target to 4,900 Morgan Stanley’s Wilson turned less bearish on Monday There’s a shift in tone happening across Wall Street. Oppenheimer Asset Management’s Chief Investment Strategist John Stoltzfus lifted his target on the S&P 500 index to a Street high, a day after Morgan Stanley’s Michael Wilson, one of […]
Powell Signals Fed Will Raise Rates If Needed, Keep Them High
Catarina Saraiva and Craig Torres Bloomberg August 25, 2023 Fed in position to ‘proceed carefully’ at upcoming meetings Stronger economy could push up inflation, warrant more hikes Federal Reserve Chair Jerome Powell said the US central bank is prepared to raise interest rates further if needed and intends to keep borrowing costs high until inflation is on […]