US Markets swimming In the red and Janet Yellen is getting closer to raising interest rates, signaling that a rate hike this year is still on the table, but she was vague on timing. It is unlikely the Fed would raise rates right before the U.S. elections. Consumer sentiment from the University of Michigan came in at 89.8, down from the preliminary reading of 90.4.
Here is the current market situation from CNN Money
North and South American markets are mixed. The Bovespa is higher by 0.18%, while the IPC is leading the S&P 500 lower. They are down 0.93% and 0.24% respectively.
JACKSON HOLE, Wyo. (Reuters) - The case for a U.S. interest rate hike has strengthened in recent months because of improvements in the labor market and expectations for solid economic growth, Federal Reserve Chair Janet Yellen said on Friday.
WASHINGTON (Reuters) - U.S. economic growth was slightly more tepid than initially thought in the second quarter as businesses aggressively ran down inventories, offsetting a spurt in consumer spending.
(Reuters) - Wall Street reversed course to trade lower on Friday afternoon after hawkish comments from Federal Reserve Vice Chair Stanley Fischer raised the specter of a rate hike as soon as next month.
NEW YORK (Reuters) - A federal judge on Friday granted a request by Uber Technologies Inc and its chief executive Travis Kalanick to put a price-fixing lawsuit against them on hold, while they appeal his denial of their bid to compel arbitration.
DUBLIN (Reuters) - U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen.
Prediction: If Hillary Clinton wins, within a year of her inauguration, she will be under investigation by a special prosecutor on charges of political corruption, thereby continuing a family tradition.
For consider what the Associated Press reported this week:
The surest way for a person with private interests to get a meeting with Secretary of State Clinton, or a phone call returned by her, it seems, was to dump a bundle of cash into the Clinton Foundation.
Of 154 outsiders whom Clinton phoned or met with in her first two years at State, 85 had made contributions to the Clinton Foundation, and their contributions, taken together, totaled $156 million.
Conclusion: Access to Secretary of State Clinton could be bought, but it was not cheap. Forty of the 85 donors gave $100,000 or more. Twenty of those whom Clinton met with or phoned dumped in $1 million or more.
To get to the seventh floor of the Clinton State Department for a hearing for one's plea, the cover charge was high.
Among those who got face time with Hillary Clinton were a Ukrainian oligarch and steel magnate who shipped oil pipe to Iran in violation of U.S. sanctions and a Bangladeshi economist who was under investigation by his government and was eventually pressured to leave his own bank.
The stench is familiar, and all too Clintonian in character.
Recall. On his last day in office, Jan. 20, 2001, Bill Clinton issued a presidential pardon to financier-crook and fu ...
Remember when Obama toured around the country telling everyone that Obamacare was going to increase competition and lower premiums? If not, here is an example to help jog your memory (comments taken from Obama remarks delivered at Prince George's Community College on 9/26/13):
Now, this is real simple. It's a website where you can compare and purchase affordable health insurance plans, side-by-side, the same way you shop for a plane ticket on Kayak -- (laughter) -- same way you shop for a TV on Amazon. You just go on and you start looking, and here are all the options.
It's buying insurance on the private market, but because now you're part of a big group plan -- everybody in Maryland is all logging in and taking a look at the prices -- you've got new choices. Now you've got new competition, because insurers want your business. And that means you will have cheaper prices. (Applause.)
Well, as we've pointed out numerous times things are not really playing out as Obama had hoped with premiums skyrocketing (see "Obamacare On "Verge Of Collapse" As Premiums Set To Soar Again In 2017") and "competition" collapsing (see "Tennessee Insurance Commissioner Warns Obamacare "Very Near Collapse"").
Despite Yellen's hawkish tone, market participants clung to dovish hopes in her words... but Stan Fischer just clarified "Yellen's comments are consistent with a possible September hike" and that has spoiled th eparty in stocks, bonds, gold, and the dollar...
*FISCHER: I DON'T THINK FED IS BEHIND THE CURVE
*FISCHER: ECONOMIC PICTURE IS VERY COMPLEX
*FISCHER: YELLEN'S COMMENTS CONSISTENT WITH POSSIBLE SEPT. HIKE
*FISCHER: BIG ISSUES IN GROWTH ARE INVESTMENT, PRODUCTIVITY
*FISCHER: ON EMPLOYMENT, WE'RE DOING WELL
*FISCHER: FED IS RESOLUTELY NOT A POLITICAL BODY
*FISCHER: WE AREN'T ELECTION FORECASTERS; LOOK AT ECO. SIGNALS
*FISCHER: IN FOMC MEETINGS WE DO DISCUSS SUBGROUPS OF EMPLOYMENT
*FISCHER: NOT TOO CONCERNED ABOUT ASSET BUBBLES NOW
So to summarize:
Yellen: Hawkish titled speech but offered this dovish bone: "future policymakers may wish to explore the possibility of purchasing a broader range of assets."
Fischer: Hawkish tone confirmation "Yellen's comments are consistent with a possible September hike"
Which broke the tie for the algos... and the market reacts...
Unlike many of the sentiment indicators we've looked at recently, traders on one options exchange recently exhibited a record show of nervousness.
We've written a fair amount recently about the growing level of optimism, or complacency, evident in many corners of the stock market. Indeed, overly exuberant sentiment is probably the most troublesome factor in the markets right now. There is nary a time, however, when all signals and indicators are in alignment with one another. The present is no exception. And in fact, the traders on one options exchange recently demonstrated a record level of cautiousness.
We have covered options ratios from the International Securities Exchange (ISE) on numerous occasions in the past. While it does not clear the level of volume seen on other exchanges, the ISE data can still be quite useful as a measure of trader sentiment. Part of its effectiveness stems from the fact that the ISE only includes opening customer long positions (calls or puts) in its ratio calculations. This practice, argues the ISE, makes for a more accurate gauge of investor sentiment than when incorporating more complicated trades by large firms and market makers as well.
Typically, we prefer to look at the ISEE, "ISE Equity", call/put ratio for a read on sentiment out of the exchange (unlike most sources, the ISE lists their options ratios with calls as the numerator and puts as the denominator). Today's Chart Of The Day, however, looks at the ISE "All Securities" ratio. This includes index and ETF options trades as well. The reason for highlighting this ratio today is that on Tuesday, August 23, it registered its lowest reading ever recorded, 31, since inception in 2002. I ...
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