Morning Minutes

Last Call For Data Before the Big Fed Decision

federal-reserve-board

Share:

Facebook
Twitter
LinkedIn
Email
Print

Today at 2:00 pm the Fed releases its latest monetary policy decision and statement. Investors are looking for some clarity on whether the US central bank is planning to start tapering back asset purchases this year (like central banks in Canada, Australia, and New Zealand have already), or if it intends to let stimulus continue as is into next year (as the European and Japanese central banks have already decided). Previous hints from the Fed have suggested it could run down asset purchases between the end of this year and the middle of 2022, and then start raising interest rates in the second half of 2022. Any acceleration of this schedule could be seen as hawkish, any slowing of this schedule could be seen as dovish.

The Fed decision arrives at a point when evidence of stagflation (slow economic growth and high inflation) have been increasingly showing up in economic reports. This morning brings the last round of data ahead of the decision. US ADP payrolls showed a resilient economy, coming in stronger than expected (571K vs street 400K and previous 568K). At 10:00 am EDT US ISM Services PMI reports are due with the street expecting readings of 62.0 for the headline number, 63.2 for the forward-looking New Orders component, and 76.9 for the Prices Paid inflation component. US factory orders are also due at 10:00 with the street expecting a 0.1% monthly decline.  

The market reaction to corporate news has been very mixed today. Bed Bath and Beyond is up 53.1% premarket action after the home products retailer announced a new partnership with grocery chain Kroeger. Video game producer Activision Blizzard is down 13.0% premarket after posting disappointing guidance for the upcoming holiday season. Lyft is up nearly 14.0% premarket after posting a surprise profit (+$0.05 vs street -$-0.03). Zillow is down 15.7% premarket after announcing plans to shut down its house flipping business and reporting surprise losses. Later today, results are due from several senior insurance companies including Manulife Financial, Sun Life, Great West Life, and MetLife.

Subscribe to the Morning Minutes:

Today's earnings reports and market activity, delivered right to your inbox.

Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Read More

Legal and Regulatory Disclosures

Terms and Conditions:
This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

INTERNET EXPLORER NOTICE