David Moenning's Daily State of the Markets: 10/20
Tweet
Share
E-mail
A Festival of Fedspeak
After enduring an absolutely miserable start to the month of October, the Bulls finally pushed back yesterday with a high volume reversal/confirmation day. The day started with the usual move lower and by mid-morning, the feel of the market wasn�t exactly positive. However, just after lunch the cavalry arrived in the form of lower oil prices and the Fed�s Beige Book, and the bulls made the most of their long overdue opportunity.
The key to the day, at least in terms of price movement, was the release of the Fed�s Beige Book report on the current state of the economy. The report showed that economic expansion in September and early October was moderate. While hardly awe inspiring, since the market had been worried that Katrina and Rita would have a negative impact on the economy, the fact that the economy appears to have taken the storms in stride was definitely a positive.
However, one of the biggest events of the day didn�t really impact the market. During the day yesterday, we got not one, not two, but five different comments from Fed officials. It was nothing short of a festival of Fedspeak. In short, it looks like the gang at the Fed got together and decided to �get the word out� that we should expect higher rates, higher inflation, and that the Fed will react to data as it comes in.
Looking ahead to this morning, the earnings news isn�t exactly stellar so far today and it looks like stocks may pull back a bit at the open. However, the real question at this point is just how much upside can there be right now with the specter of inflation and higher rates hanging over the market�s head?
Stocks "In Play" This Morning:
HAS � May receive a bid from MAT
TOT � Upgraded at Lehman
LLY � Beat by $0.02
PFE � Disappointing report
F � Loss for quarter larger than expected
KO � Beat by $0.01
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: none
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
After enduring an absolutely miserable start to the month of October, the Bulls finally pushed back yesterday with a high volume reversal/confirmation day. The day started with the usual move lower and by mid-morning, the feel of the market wasn�t exactly positive. However, just after lunch the cavalry arrived in the form of lower oil prices and the Fed�s Beige Book, and the bulls made the most of their long overdue opportunity.
The key to the day, at least in terms of price movement, was the release of the Fed�s Beige Book report on the current state of the economy. The report showed that economic expansion in September and early October was moderate. While hardly awe inspiring, since the market had been worried that Katrina and Rita would have a negative impact on the economy, the fact that the economy appears to have taken the storms in stride was definitely a positive.
However, one of the biggest events of the day didn�t really impact the market. During the day yesterday, we got not one, not two, but five different comments from Fed officials. It was nothing short of a festival of Fedspeak. In short, it looks like the gang at the Fed got together and decided to �get the word out� that we should expect higher rates, higher inflation, and that the Fed will react to data as it comes in.
Looking ahead to this morning, the earnings news isn�t exactly stellar so far today and it looks like stocks may pull back a bit at the open. However, the real question at this point is just how much upside can there be right now with the specter of inflation and higher rates hanging over the market�s head?
Stocks "In Play" This Morning:
HAS � May receive a bid from MAT
TOT � Upgraded at Lehman
LLY � Beat by $0.02
PFE � Disappointing report
F � Loss for quarter larger than expected
KO � Beat by $0.01
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: none
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
You May Also Be Interested In
- Total Energy Services Inc. Announces Q2 2026 Results
- Morgan Stanley sees Fed on hold through year-end on disinflation
- NANO Nuclear Announces Participation in Several Investor Conferences
Create E-mail Alert Related Categories
ContributorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
