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Stock Ideas Investors Daily Edge Fed Counts Bullets, Earnings Dominate Calendar
Stock Ideas Investors Daily Edge Fed Counts Bullets, Earnings Dominate Calendar 
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Rarely are investment markets as volatile as they’ve been during the past month or so. And vital resource stocks have been among the most jaggedly traded. This kind of action comes with the territory. Vital resource stocks are inexorably tied to global economic growth, and anything that seems to threaten that growth invariably triggers a sell-off. |
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| Fed Counts Bullets, Earnings Dominate Calendar |
| Monday, 26 January 2009 | ||||||||
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There is a full economic calendar this week, but all eyes will be on the two-day FOMC meeting and the rate decision on Wednesday. It will be interesting to see how the FOMC approaches this meeting. The current Fed Funds target rate is 0-0.25%, which in and of itself is rather strange. It is a moving target, not a fixed rate. Who determines which rate is used? My guess is this meeting will be used to clarify what the rate is. The Fed will either officially reduce it to 0% in a continued effort to resuscitate the economy, or lock it in at 0.25%. This would at least leave the Fed with one perceived bullet in the gun. The rest of the week has a full slate, which starts this morning with the December Existing Home Sales report. Expectations are for a slowdown of 40k units versus the previous month, and I think that is overly optimistic. The housing reports last week both fell flat on their face so I don’t think this report, or the New Home Sales report on Thursday, will come anywhere close to expectations. Tuesday morning sees the release of the Consumer Confidence report for January, and this one is a tough read for me. It is expected to be the same as the December reading of 38. I am not sure which one will have a bigger impact on the reading: consumers getting excited about a change in leadership, or fearful of more job cuts. I guess it all depends on when the reading was taken. Earnings: Mon: AXP, AMGN, CAT, HAL, MCD, TXN Tues: BMY, DD, GILD, JAVA, YHOO Wed: PFE, SBUX, WFC Thurs: MMM, AMZN, CELG, CL, LLY, JNPR, Fri: CVX, XOM, HON, PG, Make your voice heard -- to let us know your thoughts on this article, you can click here and leave your comments for the IDE community as well as the editors.
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