Higher and Higher. Stocks closed decisively higher the first full day after Thanksgiving , fueled by positive sentiments on multiple fronts. In today’s After the Bell, we…
…discuss what to watch for in this week’s Fed speeches;
…take an early look of 2019 market expectations;
…and watch a stock shoot up after a new financial chief is named.
2019: What’s Old and What’s New
The holiday spirit of generosity may have infiltrated the stock market. After the big selloff over the past weeks, all three major indexes closed higher on Monday amid a series of hopeful threads.
The Dow Jones Industrial Average gained 354.29 points, or 1.5%, to 24,640.24, while the S&P 500 increased 40.89 points, or 1.6%, to 2673.45 and the Nasdaq Composite rose 142.87 points, or 2.1%, to 7081.85.
Black Friday again proved American consumers’ purchasing power and the economy’s strength; oil bounced after the latest report of Saudi Arabia’s potential production cut; and EU leaders approved the Brexit deal.
Most importantly, three Fed officials are expected to give speeches this week–Vice Chairman Richard H. Clarida on Tuesday, Chairman Jerome Powell on Wednesday, and John C. Williams, president and CEO of the New York Fed on Friday. Investors are waiting to see if the central bank is turning to a more dovish tone after the recent market rout and economic indicators of slowing growth.
Matthew Luzzetti of Deutsche Bank pointed out four things investors should keep an close eye on in these speeches. Are financial conditions still accommodative? How worrying is slowing global growth? Is confidence wavering in on-target inflation? And lastly, are we close to the neutral rate of interest?
“We will be watching for any signs that Fed leadership may interpret recent market developments and the