Stocks Under Pressure as Risk Returns
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The Dow fell below 15,000 mid-day Wednesday as risk has returned to the market given the carnage witnessed in Japan over the past 10-days and concerns about Fed tapering.
Heading into the 1PM hour, the Dow is down 189, the Nasdaq is down 43 and the S&P 500 is down 21.
Not only have U.S. market participants stood by to watch a 17% slide in Japan's Nikkie since May 23rd, but are also bracing for hawkish commentary when the Fed's Beige Book is released later this afternoon. Recent commentary from Fed heads have centered on tapering of QE.
On Monday, Atlanta Fed President Dennis Lockhart said the Fed is approaching a period in which QE tapering can be "seriously considered". Kansas City Fed President Esther George echoed these thoughts on Tuesday. In her view, this would begin to "lay the groundwork for a period when markets can prepare to function in a way that is far less dependent on central bank actions."
Commentary on Fed easing comes in conjunction with economic data that has been somewhat weaker-than-expected. Earlier this week, the ISM manufacturing index showed contraction for the first time 2012. Today, the ADP report showed the U.S. added 135,000 jobs in May, which was 30,000 below the 165,000 job additions estimated by economists.
Heading into the 1PM hour, the Dow is down 189, the Nasdaq is down 43 and the S&P 500 is down 21.
Not only have U.S. market participants stood by to watch a 17% slide in Japan's Nikkie since May 23rd, but are also bracing for hawkish commentary when the Fed's Beige Book is released later this afternoon. Recent commentary from Fed heads have centered on tapering of QE.
On Monday, Atlanta Fed President Dennis Lockhart said the Fed is approaching a period in which QE tapering can be "seriously considered". Kansas City Fed President Esther George echoed these thoughts on Tuesday. In her view, this would begin to "lay the groundwork for a period when markets can prepare to function in a way that is far less dependent on central bank actions."
Commentary on Fed easing comes in conjunction with economic data that has been somewhat weaker-than-expected. Earlier this week, the ISM manufacturing index showed contraction for the first time 2012. Today, the ADP report showed the U.S. added 135,000 jobs in May, which was 30,000 below the 165,000 job additions estimated by economists.
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