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    • The Federal Reserve will hold its last policy meeting of the year next week, and two key issues are expected to dominate the gathering and the market's attention -- the expiration of "Operation Twist" and a potential change in interest rate guidelines.

      Implemented in September 2011, Operation Twist was designed to lower rates for mortgages and corporate bonds. The program, which expires at the end of this month, entailed the Fed buying $667 billion (roughly $45 billion per month) in longer-term Treasuries above 6-year durations, while selling the same amount in shorter-term securities under 3-year durations.

      The goal of the monetary twist has been to lower long-term rates to fuel consumer and corporate borrowing and spending.

      "With Operation Twist ending, that means they've run out of short-dated securities to sell in order to purchase more [longer-term securities], so what they've got to move to now is buying up pure $40 billion per month of mortgage-backed securities [QE3]," says Andrew Wilkinson, chief economic strategist at Miller Tabak. "They probably have to compensate for that loss of $40 [billion] to $45 billion per month."

      Rumors of QE4

      Wilkinson is touching on concerns that have recently been addressed by various Fed governors. That is, that simply carrying out the third round of quantitative easing is not enough to boost the economy. QE3 is an open-ended program that has the Fed buying $40 billion per month in mortgage-backed securities.

      So will the Fed turn Operation Twist into another outright securities purchasing program, essentially becoming QE4? Or are they more confident in the economy given the improvement in the November jobs report?

      The market will be watching very closely to see if the Fed changes its tune. The decision on handling Twist's expiration will be very telling as to how the committee views the recovery and how much stimulus will be pumped into the economy in 2013.

      Read More »from Fed Finale: The End of Operation Twist, or the Start of QE4?
    • The World Meets Apple’s Tim Cook

      It's been over a year since Tim Cook succeeded Steve Jobs at Apple (AAPL), but only now, with the stock off 23% from all-time highs reached in September, is he truly opening up about the company. In interviews with NBC News and Bloomberg, Cook spoke about the Apple maps debacle, the advice of Steve Jobs, bringing manufacturing jobs to the U.S. and the future of the company.

      "Our whole role in life is to give you something you didn't know you wanted. And then once you get it, you can't imagine your life without it," Cook told NBC's Brian Williams. When pushed for more details, specifically about the much-rumored foray into television sets, Cook offered only, "It's a market that we have intense interest in, and it's a market that we see that has been left behind."

      Related: Apple Could Fall Below $500 a Share: Barry Ritholtz

      David Garrity of GVA Research thinks the secrecy surrounding an Apple TV may soon come to an end. "Major hints were being dropped," he said, "and I would argue that's something we're gonna be seeing in 2013."

      Speaking of 2013, Cook says more manufacturing will be headed to the U.S. in the coming year. "We've been working for years on doing more and more in the United States," he told Williams. "Next year, we will do one of our existing Mac lines in the United States."

      Related: Apple Is in a Multi-Year Decline, Shares to Fall 50-70% Says Schatz

      Regardless of what products come out of Cupertino and how the manufacturing process is altered, Garrity notes that Apple as a whole is going through a conversion of sorts. "Apple is going to be changing as a company under Cook's leadership versus that under Jobs leadership."

      Read More »from The World Meets Apple’s Tim Cook
    • As much as his fans scream and yell when he walks on water or levitates, most people have a pretty good idea that magician/illusionist Criss Angel is somehow tricking them and not actually defying the laws of physics.

      In much the same why, when this morning's surprisingly strong jobs data came out, professional investors and economists alike knew immediately that something was up. In a month when one of the nation's most disruptive storms in recent history occurred, for the Bureau of Labor Statistics to report that Hurricane Sandy did not have an impact and the unemployment rate fell to a four-year low of 7.7% and 146,000 new jobs were created, that defies the laws of reason.

      "It's a little hard to believe quite honestly," says Dan North, chief economist at Euler Hermes, in the attached video. "If there's any report that deserved caveats and conditions it's this one."

      And he's not alone. Peter Kenny from Knight Capital calls the report a ''head scratcher'' in a note to clients today, saying he never looks a gift horse in the mouth, but just can't get comfortable with the numbers. And Andrew Wilkinson, chief economic strategist at Miller, Tabak & Co., who correctly called for a much stronger than expected number yesterday, is already expecting the 20,000 reduction in construction jobs to be short-lived, reminding clients that "we know what follows any disaster."

      Related: Resist Urge to Panic on November Jobs Report Says Wilkinson

      It's not like the markets weren't ready for a wild pitch, so to speak, of a jobs report. The Wall Street Journal went as far as calling it "the least important jobs report in five years" given the diffused post-election environment and the fact the Fed meets next week.

      Read More »from Unemployment Rate Hits 4-Year Low But Markets Remain Skeptical
    • As Mobile Surges, Can Smaller Companies Beat the Internet Giants?

      Earlier this year, Cisco (CSCO) predicted in its Visual Networking Index that the number of mobile devices in use around the globe would exceed the world's population by the end of 2012. That projection came along with a tally showing a strong 2011, when mobile data traffic surged by 133%.

      The next logical question then, is which companies are best-positioned to succeed in the mobile space from here? Eric Jackson, founder of Ironfire Capital, points to companies like Google, (GOOG), Yahoo! (YHOO) [the publisher of this website] and Facebook (FB) as the winners in terms of total users across both their mobile and desktop platforms. However, he also believes that some powerful smaller players may unseat the big names as mobile use continues to skyrocket.

      "Certain verticals are going to be big winners in mobile," says Jackson. "Music is unquestionably going to be a big winner. Directory information like the kind of stuff you get off of Yelp (YELP) obviously is [also] going to continue to do well."

      With music such a key growth play, it's no wonder Pandora (P) tops the list of companies whose users prefer mobile over desktop. "There are about twice as many people who access the Pandora app from a mobile device only, compared to the size of the people that are plugging in at work and listening to Pandora music on their PCs," Jackson says.

      Still, even though it may be at the head of the pack, Jackson warns that intense competition from Spotify, Songza and perhaps even Apple (AAPL) makes Pandora a slightly risky investment. The truth is in the tape, with Pandora's stock down over 27% in the last six months.

      Read More »from As Mobile Surges, Can Smaller Companies Beat the Internet Giants?

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