The Wall Street Journal – Surging Nasdaq Pierces 4000 The Nasdaq Composite Index closed above 4000 for the first time in 13 years, the latest milestone in a 2013 stock rally fueled by easy money from the Fed and robust investor demand for a broader swath of fast-expanding companies. A rise of 23.18 points Tuesday… Continue reading The NASDAQ Then And Now
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Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 14:00 GMT) , Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. What are the metrics that will lead the Fed to taper? Will concerns regarding financial stability spur them to cut purchases… Continue reading When will the Fed taper and what happens once they do?
Seeking Alpha – S&P 500 Q3 Earnings Up 3.5%, Q4 May Accelerate The Q3-2013 earnings season is essentially over, with over 90% of the S&P 500 (SPY) companies having reported their results. Earnings growth rate, at 3.5%, continues at the slow pace of the past four quarters…For most of this year, analysts expected future earnings… Continue reading One Final Update On This Quarter’s Earnings
FT Alphaville (FT Blog) – FARPs in progress The reverse repo facility “testing” that began at the end of September has seen the maximum allotment go from $500 million to $1 billion, and the rate has gone from 1bp to 5bp, with the last three increases coming in almost weekly intervals. So far, the biggest… Continue reading An Update On The Fed’s Fixed Rate Repo Facility
MoneyBeat (WSJ Blog) – Inflation Enters the Fed Taper Equation Even if the U.S. economy and jobs market continue to improve, a low inflation environment could keep the Fed’s bond-buying program going to end of the first-quarter, according to Bank of America Merrill Lynch. The firm now sees the Fed announcing a first reduction to… Continue reading Timing The Taper
The Wall Street Journal – M&A Mystery: Why Are Takeover Prices Plummeting? Mergers and acquisitions have been dominated by cheapskates this year. U.S. companies are paying just 19% more, on average, than their acquisition target’s trading price one week before the deal was announced. That’s the lowest takeover premium since at least 1995, as far… Continue reading M&A Activity
FT Alphaville (FT Blog) – IOER cut scepticism In response to the apparent enthusiasm in the latest FOMC minutes for cutting the interest paid on reserves, we noted last week that the Fed would likely wait for certain conditions to be met before taking this step, if it ever does. Those conditions are: 1) The… Continue reading Cutting Interest On Excess Reserves
MoneyBeat (WSJ Blog) – Thanksgiving Could Ring In Some Holiday Cheer for Investors With Thanksgiving only a few days away, stock-market bulls remain adamant that the rally will keep gaining steam in the weeks ahead. One of the reasons for the steadfast optimism is the seasonal tailwind the market has at its back in the… Continue reading Stock Seasonality
Real Time Economics (WSJ Blog) – Whenever Fed Talks, Markets Move Looking at market movements around the release of Fed statements and press conference for 2012, Fernando Duarte and Carlo Rosa concluded that “the June FOMC meeting was an exception, but rather the rule. The stock market moves the most around the release of the… Continue reading This Just In…Markets More Volatile During Fed Meetings
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Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/112613.mp3|titles=Conference Call ] Topics Covered This Week Include: The Purpose of QE Is To Raise Stock Prices The Fed And The Stock Market Worry About Financial Stability Tapering Starts When The Economy Gets Better, Period! S&P 500 Earnings Expectations Small Capitalization Stock Valuation Earnings Expectations – Always Fall… Continue reading Conference Call Presentation/Charts of the Week