The Federal Open Market Committee (FOMC) meets again this week to review economic conditions and set monetary policy. On whether the Fed should end quantitative easing or extend it, Atlanta Fed chairman Dennis Lockhart recently said that the Fed should remain flexible given the rising energy prices, which could be a sign of coming inflation. Either at this meeting or the next, the Fed could signal that interest rates will rise as a hedge against inflation.

Inflation will also be the focus when the Department of Labor releases the Producer Price Index (PPI) and Consumer Price Index (CPI) this week. Back in January the core PPI (which excludes energy and food costs) had its biggest jump in two years, and the core CPI had its largest uptick in more than year, the second month in a row in which consumer prices jumped.

Continue reading Week in Preview: Inflation, the FOMC and Nike Earnings

Week in Preview: Inflation, the FOMC and Nike Earnings originally appeared on BloggingStocks on Sun, 13 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Up After Dell Reports Upbeat Earnings

U.S. Stock Futures Up After Dell Reports Upbeat Earnings originally appeared on BloggingStocks on Wed, 16 Feb 2011 08:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that quantitative easing will continue with the purchase of "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011."

There were no dissents against the FOMC statement.

The FOMC left its options open for the future and gave no specific guidance as to what actions it will take when QE2 ends.

Continue reading The Fed Decision: It's All about Unemployment!

The Fed Decision: It's All about Unemployment! originally appeared on BloggingStocks on Wed, 26 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve has embarked on a controversial new program of buying $600 billion of U.S. Treasuries to keep interest rates low and spur the economy.

There is some disagreement among some members of the Fed concerning the risks of this new program. Some fear that the economy is growing too rapidly, fueling unwanted levels of inflation, as reported by CNNMoney.

Continue reading Fed Members Differ on Economic Outlook

Fed Members Differ on Economic Outlook originally appeared on BloggingStocks on Wed, 05 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee stated, again, that interest rates will remain low for an extended period of time and that quantitative easing will continue with the "purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month." Thomas Hoenig again voted against the FOMC policy.

The FOMC left its options open for the future and gave no specific guidance as to what actions it will take when QE2 ends next year.

Continue reading The Fed Statement: No News, Just Confirmation of Policy

The Fed Statement: No News, Just Confirmation of Policy originally appeared on BloggingStocks on Wed, 15 Dec 2010 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Fed Holds Rates Steady, Surprises No One

Fed Holds Rates Steady, Surprises No One originally appeared on BloggingStocks on Tue, 14 Dec 2010 17:20:00 EST. Please see our terms for use of feeds.

Among the quarterly results scheduled for this holiday-shortened week, investors may be thankful for the earnings results from Tyson Foods (TSN). The Arkansas-based poultry and meat producer reported on its sustainability efforts and also was named McDonalds' (MCD) supplier of the year during its fiscal fourth quarter. Analysts polled by Thomson Reuters forecast earnings for that period to have doubled from a year ago to 56 cents per share.

Tyson is also expected to post revenue of $7.8 billion for the three months that ended in September, which is 7.4% more than in the same period of fiscal 2009. And the consensus estimate for the full year calls for earnings of $2.08 per share (+87.0%) and revenue of $28.7 billion (+7.3%). Tyson's earnings have been better than expected in recent quarters, beating consensus estimates by as much as 24 cents per share.

Continue reading Week in Preview: Tyson Foods, Analog Devices, Deere Serve Up Earnings

Week in Preview: Tyson Foods, Analog Devices, Deere Serve Up Earnings originally appeared on BloggingStocks on Sun, 21 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds of Treasury securities will continue to be re-invested into additional Treasury securities.

There will also be additional quantitative easing. This will take the form of the purchase of an additional "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month," according to the Fed's statement. This was well within the $500 billion to $1 trillion range expected by many economists and strategists. Thus, the current program appears to be largely discounted by the market.

Continue reading The Fed Decision: This is Not the End of Quantitative Easing!

The Fed Decision: This is Not the End of Quantitative Easing! originally appeared on BloggingStocks on Thu, 04 Nov 2010 09:30:00 EST. Please see our terms for use of feeds.

It will be a busy week. Republicans are poised to gain control of the House of Representatives and gain governorships in Tuesday's mid-term elections. Also, the Federal Reserve is expected to announce another round of quantitative easing Wednesday, following the FOMC meeting. Major retailers are scheduled to report October same-store sales Thursday, while the October unemployment rate, announced on Friday, is expected to remain at 9.6%.

Toyota's (TM) fiscal second-quarter results will be one of the highlights on the earnings front this week. After three periods of way underestimating Toyota's earnings, have the analysts surveyed by Thomson Reuters got it right this time? The stock sure could use a boost. Teva Pharmaceuticals (TEVA) is in a similar situation; i.e., high expectations for this week's quarterly results but a stock in need of a boost. Marathon (MRO) and Starbucks (SBUX) are also expected to post strong earnings growth this week, but both stocks are riding high.

Continue reading Week in Preview: Election, QE2, Unemployment and More Earnings

Week in Preview: Election, QE2, Unemployment and More Earnings originally appeared on BloggingStocks on Sun, 31 Oct 2010 12:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds of Treasury securities will be continue to be re-invested into additional Treasury securities. There was no additional mention of quantitative easing. Thomas Hoenig again dissented against the FOMC statement.

Although the FOMC mentioned the economic improvement continuing, it indicated increasing concern with high unemployment and depressed housing. It also mentioned that "bank lending has continued to contract."

Continue reading The Fed Decision: Where Is the Quantitative Easing?

The Fed Decision: Where Is the Quantitative Easing? originally appeared on BloggingStocks on Tue, 21 Sep 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The Fed Is All That Counts (CAG, NOK, VVUS)

Closing Bell: The Fed Is All That Counts (CAG, NOK, VVUS) originally appeared on BloggingStocks on Tue, 21 Sep 2010 16:30:00 EST. Please see our terms for use of feeds.

Housing steps into the spotlight again this coming week. The release of the National Association of Homebuilders Housing Market Index starts out the week on Monday morning. Then on Tuesday morning, look for housing starts data from August. Release of the July FHFA House Price Index is scheduled for Wednesday. And numbers for existing home sales and for new home sales in August are due out Thursday and Friday, respectively. Overall, the housing market is expected to have continued to lose momentum in August, but less dramatically than in July.

Also on the economic calendar this week: Tuesday's FOMC meeting on interest rates, the Conference Board's Leading Economic Indicators Index for August on Thursday, initial jobless claims for last week, and durable goods orders data for August on Friday. No significant changes from the Fed are anticipated, but the leading economic indicators may rise a bit.

Continue reading The Week in Preview: Housing Data, Lennar's Earnings and More

The Week in Preview: Housing Data, Lennar's Earnings and More originally appeared on BloggingStocks on Sun, 19 Sep 2010 12:30:00 EST. Please see our terms for use of feeds.

Investors nervous about the possibly stalled economic recovery -- or worse, the beginning of the latter phase of a double-dip recession -- were not pleased with last week's housing numbers. Things were perhaps ameliorated somewhat by durable goods order numbers and a revised GDP that weren't as bad as expected, but that didn't stop the Dow from dipping below 10,000 later in the week, before fighting its way back above the benchmark to end the week, thanks largely to Fed chair Bernanke's comments on Friday.

Though the end of August is usually quiet, this week lots more economic data are due out, including more housing numbers: The Case-Shiller Home Price Index for June on Tuesday, construction spending numbers for July on Wednesday, and NAR's pending home sales for July on Thursday. There's not expected to be much to get excited about in these numbers.

Continue reading The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations

The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations originally appeared on BloggingStocks on Sun, 29 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The Bears Found Some Bulls (ABK, JASO, MBI, NFLX, INTC)

Closing Bell: The Bears Found Some Bulls (ABK, JASO, MBI, NFLX, INTC) originally appeared on BloggingStocks on Tue, 10 Aug 2010 16:00:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds from agency debt and agency mortgage-backed and Treasury securities will be re-invested into Treasury securities. Thomas Hoenig dissented against the FOMC statement and wants a tighter monetary policy.

The FOMC mentioned the economic improvement continuing albeit at a reduced pace but indicated that it was a mixed picture with high unemployment and depressed housing. It also mentioned that "bank lending has continued to contract."

Continue reading The Fed Decision: Quantitative Easing Continues!

The Fed Decision: Quantitative Easing Continues! originally appeared on BloggingStocks on Tue, 10 Aug 2010 15:30:00 EST. Please see our terms for use of feeds.

Federal Open Markets Committee (FOMC) meets again on Tuesday. Though the August meeting of the FOMC is generally uneventful, this time there is speculation about whether the FOMC will resort again to some quantitative easing -- a way of pumping additional money into the financial system.

Fed chairman Ben Bernanke has already hinted at such a move, given that economic growth has clearly slowed. Last week's disappointing employment numbers are the latest confirmation of that. The question is whether the Fed's decision to take action will happen at this week's meeting, perhaps aggravating deflation fears, or it may wait until the September meeting, at which point it risks impacting the upcoming mid-term elections.

Continue reading The Week in Preview: FOMC Meeting, Consumer Sentiment, Retail Earnings

The Week in Preview: FOMC Meeting, Consumer Sentiment, Retail Earnings originally appeared on BloggingStocks on Sun, 08 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time. Thomas Hoenig dissented against the FOMC statement and wants a much tighter monetary policy. He still remains the only voice against the statement but is said to favor a change in language, not an immediate rise in interest rates.

The FOMC mentioned continued economic improvement but indicated that it was a mixed picture with high unemployment and depressed housing. With unemployment expected to remain elevated for the foreseeable future and little inflationary pressure from the CPI thus far, it is in no rush to tighten.

Continue reading The Fed Decision: Not the Time to Take Chances!

The Fed Decision: Not the Time to Take Chances! originally appeared on BloggingStocks on Wed, 23 Jun 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The Big Coin Toss (BP, ADBE, RAD, RGLD)

Closing Bell: The Big Coin Toss (BP, ADBE, RAD, RGLD) originally appeared on BloggingStocks on Wed, 23 Jun 2010 16:20:00 EST. Please see our terms for use of feeds.

Among the coming week's most prominent quarterly reports are those from Oracle Corp. (ORCL), Bed Bath & Beyond Inc. (BBBY) and Nike Corp. (NKE). Analysts surveyed by Thomson Reuters are looking for healthy year-over-year earnings and revenue growth from each of them.

Analysts on average expect enterprise software giant Oracle to report that its fiscal fourth-quarter earnings rose 14.8% from a year ago to $0.54 per share. Revenue for the three months that ended in May is expected to have risen about 38.1% in the past year to $9.5 billion. Oracle's per-share earnings have not fallen short of consensus estimates in the past five quarters. The First Call recommendation of 37 analysts is to buy ORCL and has been for more than 90 days. Shares have retreated recently from the 52-week high of $26.63 and closed the week at $23.20.

Continue reading The Week in Preview: Expectations for Oracle, Nike, Interest Rates

The Week in Preview: Expectations for Oracle, Nike, Interest Rates originally appeared on BloggingStocks on Sun, 20 Jun 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Headwinds More Dominant Than GDP (DHI, NDAQ, GS, MFE)

Closing Bell: Headwinds More Dominant Than GDP (DHI, NDAQ, GS, MFE) originally appeared on BloggingStocks on Fri, 30 Apr 2010 16:30:00 EST. Please see our terms for use of feeds.