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The Morning Look

ByGary Kaltbaum

Stock Market Overview:

U.S. stock futures and oil prices are up nicely in the premarket as markets attempt to bounce from oversold levels. Stocks fell hard last week and  bounced on Monday. This came off of a weak morning leading one to believe there is going to be upside testing into the Fed. Keep in mind, last week, we saw a few days where stocks opened higher but sellers showed up and stocks closed near the lows of the day. Later today, the Fed will begin its last two-day meeting of 2015. Most market pundits believe the Fed will raise rates by a quarter point. That said, they have been telling us that all year long. There always seems to be a new reason to kick the can down the road and not raise rates. We’ll see if this time is different.

Gary’s Thoughts:  This morning’s open fits with last night’s thoughts and that upside testing after a reversal is normal. Just keep in mind, more damage has been done but…and we mean but…anything is possible with central banks at the ready with unlimited supplies of conjured up money.  

Economic Data:

  • Two-Day The FOMC Meeting Begins
  • Consumer Price Index will be released at 8:30AM EST
  • Empire State Manufacturing Survey will be released at 8:30 AM EST
  • Redbook will be released at 8:55 AM EST
  • Housing Market Index will be released at 10 AM EST

Gary’s Thoughts:

Highlights Of The Day:

  • US Dollar fell to a seven week low ahead of the Fed  meeting
    Gary’s Thoughts: See us after the meeting on this. 
  • Moody’s, the popular credit agency, lowered its forecast for 2016 Brent crude oil, the international benchmark, to $43 from $53 per barrel and for West Texas Intermediate (WTI) crude, the North American benchmark, to $40 from $48 per barrel. Rating agencies have a lousy history and missed nearly the entire 2008-2009 housing and credit crisis. However, Wall Street likes to pay attention to them.
    Gary’s Thoughts: Thanks for this bit of trivia AFTER it happens.

  • Electronic Cars Continue To Be Released: Porsche announced it will sell an electric sports car. Porsche is the latest car manufacturer to jump on the electric car craze.
    Gary’s Thoughts: The shape of things to come. 
  • The Fifth Republican debate begins tonight in Las Vegas
    Gary’s Thoughts: Yippee. The way the national media is reporting, one might just get rid of every candidate except Trump as 99.9% lf their coverage is on “The Donald!”