2 Market Positive Announcements possible by open Monday
There is hope folks- Look who's meeting in Paris and look what the Traders are looking for Sunday night/ Monday morning.
Market Insider: The Week Ahead Posted By: Patti Domm | Executive Editor CNBC.com | 03 Oct 2008 | 07:51 PM ET
So now traders believe the next move belongs to the Fed. "You're going to hear Bernanke out there chirping," said one trader, pointing to Fed Chairman Ben Bernanke's statement Friday endorsing the bill and promising that the Fed would use all its powers to ease the credit crunch.
"We're on alert for Sunday night for one thing. We want to hear that they are going to pay interest on reserves or cut the Fed funds rate. One or the other," said Kevin Ferry of Cronus Futures Management.
Traders expect the Fed to slash the current 2 percent target Fed funds rate by a half point before its next meeting, Oct. 28.
In the past week, the Dow lost 7.3 percent to 10,325, its biggest weekly drop since July 2002. The S&P 500 slumped 9.4 percent to 1099, its lowest close in four years. The Nasdaq lost 11 percent to 1947. While stocks melted, the dollar rose 5.8 percent in its biggest weekly move ever against the battered euro.
In the coming week, there are a few key economic reports, including the Fed's minutes from its last meeting released Tuesday. Consumer credit is also reported Tuesday. Pending home sales are released at 10 a.m. Wednesday, and weekly jobless claims and wholesale trade are reported Thursday. On Friday, international trade and import prices data are released.
Over the weekend, French President Nicolas Sarkozy will host a summit on the financial crises with leaders of Germany, Britain, Italy, and the heads of the European Commission and European Central Bank. Currency traders are watching this gathering closely as the troubled European banking sector becomes an increasing source of problems for global markets and has weakened the euro.
Traders are also watching the U.S. banking sector where Wells Fargo , one of the healthiest U.S. banks, swept in with a merger offer Thursday night to beat out Citigroup's bid for Wachovia. Citigroup is protesting Wachovia's new merger deal. It's own plans to merge with Wachovia , attractive to Citi for its wealth of deposits, was brokered by the FDIC.
Bernanke speaks at the National Association of Business Economists meeting in Washington Tuesday, and Lehman Brothers CEO Richard Fuld will be on Capitol Hill answering questions on his firm's demise before the House Oversight Committee. On Tuesday, former AIG officials come before that committee.