Ahead of the annual economic symposium in Jackson Hole, Wyoming, markets have enjoyed a nice rally over the past two weeks. DJIA, S&P 500 and NASDAQ all bounced off support (green dashed line) in early August and have all blown through resistance (red dashed line) recently. S&P 500 closed at a new all-time high today, NASDAQ at a new recovery high and DJIA is about 100 points from its previous high close back in mid-July.
With Fed Chairwoman Yellen scheduled to give the keynote speech tomorrow morning the question everyone is looking for an answer to is; when will the Fed begin to raise interest rates? I am going to guess later, rather than sooner. Why? Because the headline topic for this year’s Jackson Hole symposium is “Re-Evaluating Labor Market Dynamics.” I expect Chairwoman Yellen will attempt to deliver a speech that somehow says the labor market in the U.S. is improving and a positive trend is firmly in place while at the same time offering supportive information that it is still quite sick and in need of continued central bank support. It is the classic two-handed economist argument.
As for tomorrow’s trading, the day that the Fed Chair speaks has had quite a bullish history from 2007 to 2012 (Ben Bernanke skipped last year) with the S&P 500 averaging 1.3% on the day. However, in those years the market was not nearly as strong as it is this year. Having “bought the rumor” this year, it would not be surprising to see traders “sell the news” tomorrow.
Recommended for You
Back in April, a study of the fiscal implications of illegal immigration made the notable finding that millions of undocumented workers were paying billions of dollars in state and local taxes and that considerably more revenue might be generated if President Obama succeeded in protecting many of…The Fiscal Times
Are you trying to decide if you need an emergency fund, looking to start saving, or have one but want to save smarter? Here are several things to consider.Credit.com
Mebane Faber’s market-timing model says to get out of the market completely. He may be right, says Brett Arends. But here’s why he’s not selling.MarketWatch
PARIS (AP) — French investigators have formally identified a washed-up piece of airplane debris found in July on a remote island in the Indian Ocean as part of Malaysia Airlines Flight 370, a Boeing 777 that disappeared more than a year ago with 239 people aboard.Associated Press
In a note titled Choose Your Own Adventure, Credit Suisse analyst Gregory Lewis and team expect the offshore-drilling sector--which includes Seadrill (SDRL), Transocean (RIG), Noble (NE), Diamond Offshore Drilling (DO) and Ensco (ESV)--"to recover" but worry that it won't happen until 2018 at the…Barrons.com
The rules for required minimum distributions from your retirement savings plans are complicated. Making one or more of these errors could cost you a bundle.Kiplinger
Even though India's second-quarter GDP growth disappointed, it is still the fastest growing emerging market among the BRIC countries. Bank of America Merrill Lynch had a note out today saying India is ...Barrons.com
There’s a $47,851,500 reason that hotel and casino magnate Steve Wynn put his home in Bel-Air on the market recently after only eight months of ownership.Los Angeles Times
Toshiba was just caught after cooking its books for the last six years, but plenty of other companies are doing the same exact thing.The Motley Fool Videos4 mins ago
- Money NewsSponsored
Penny stocks might be the key to getting rich in a recession. Smart investors are buying their dream homes using this penny stock secret.
An initial look Altria's stock chart might lead you to believe it's headed lower, but a closer look shows the stock is headed for higher prices.TheStreet.com
WASHINGTON (AP) — Almost 12,000 students are asking the federal government to discharge their college loan debt, asserting that their school either closed or lied to them about job prospects, according to government data released Thursday.Associated Press
Cramer says Linn Energy did it the wrong way and if you like Tesla's cars, go ahead and buy the stock.TheStreet.com
Battery drain can happen after software updates, due to out-of-date settings or holdovers from previous versions. Cory Bohon explains how to fix these battery drains after performing a software update.TechRepublic
Bob Evans is a company in the midst of a major transition and somewhat of a corporate identity...Business Insider
Just how rich is Donald Trump?The Motley Fool Videos19 mins ago
Nicolas Maduro has once again flown to China in order to secure yet more loans from China, but it won’t be long before Venezuela’s economy defaultsOilprice.com
Tesla Motors Inc said on Wednesday it would begin delivering its first luxury electric crossovers, the Model X Signature series, on Sept. 29 to customers who have already reserved the sport utility vehicles. Chief Executive Officer Elon Musk tweeted that the first production cars would be handed…Reuters
A credit score is just a credit score, right? Well, no. It's unfortunately not that simple. Here's an overview of why those numbers can mean many things.Credit.com
Google is shaking things up again, rolling out a new logo that indicates where the company is going even as it keeps the colored letters that have become so familiar. The company’s most significant redesign since 1999 does away with the old font and its serifs (those little lines at the end of each…The Fiscal Times