WASHINGTON, Feb 27- U.S. economic growth braked more sharply than initially thought in the fourth quarter as businesses slowed their pace of stock accumulation and the trade deficit widened, but the underlying fundamentals remained solid. Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month,...» Read More
Underlying inflation in Australia was surprisingly subdued in the first quarter while consumer prices rose at their slowest pace in two years, radically lessening the risk of a rise in interest rates.
The Federal Reserve should leave interest rates on hold for now to achieve sustainable economic growth while getting inflation under control, a top central bank official said.
Robert Pavlik, chief investment officer for Oaktree Asset Management, told CNBC’s “Power Lunch” that he wouldn’t put new money into the market.“I believe this market wave is going to crest soon,” Pavlik said. “I think the market has been driven largely by the earnings reports of some of the largest S&P 500 names that have been able to beat their lowered expectations – lowered being the key word.”
What's in store for the market? Alec Young, equity market strategist at Standard & Poor's, and Edgar Peters, chief investment officer at PanAgora Asset Management, gave their forecasts on "Morning Call."
Investment strategists and economists have weighed in on China's uncanny 11% growth. How does the Bush Administration view the Asian powerhouse? Rob Portman, of the Office of Management and Budget, joined CNBC's Maria Bartiromo on "Closing Bell" to talk about the "good news."
Where are U.S. markets headed if China cools down inflation? Art Hogan, managing director at Jefferies, and Sam Stovall, chief investment strategist at Standard & Poor's, gave "Morning Call" viewers their answer: "We go higher."
Bill Strazzullo, chief market strategist for Bell Curve Trading, told CNBC’s “Closing Bell” that first quarter earnings estimates may have been too low.
Dean Maki, chief U.S. economist for Barclays, told CNBC’s “Power Lunch” that consumer spending is strong, but inflation is still a concern.
Gasoline costs in March helped push up overall U.S. consumer prices at the steepest rate in almost a year. Will American consumers tighten their belts? On "Morning Call," two economists debated the matter.
Ned Riley, chief executive officer of Riley Asset Management, told CNBC’s “Morning Call” that the Dow Jones Industrial Average will soon top 13,000 and 14,000 is possible. But Peter Schiff, president of Euro Pacific Capital, disagreed. “It’s not liquidity – it’s inflation,” Schiff said. “The new (market) high is meaningless. It’s an illusion created by inflation."
A surge in gasoline costs helped drive overall U.S. consumer prices up at the sharpest rate in nearly a year during March, though so-called core prices that exclude food and energy items rose at a muted pace, the Labor Department said. In a separate report, housing starts rose unexpectedly in March.
Philadelphia Federal Reserve President Charles Plosser Monday lauded the benefits of formal inflation targets but said it was too early to tell if the Fed would move in that direction as part of a study on its communications.
Consumer prices in Germany rose slightly more than expected during March on higher gasoline and electricity prices, the Federal Statistics Office said Monday, confirming its previously released initial estimates.
Euro-zone inflation rose to 1.9% for March, the European Union's statistics agency said Monday.
Get your paddles ready – Jim's putting the only publicly traded auction house on the block. Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Scott Kays, president of Kays Financial Advisory, told CNBC’s “Closing Bell” that the equities market isn’t overpriced.“What a lot of people have missed is that this market is not over-valued despite the strong trend upward we’ve had over the last several months,” Kays said Friday. “Earnings have been very strong. The P/E ratio is very reasonable. Even though the economy has slowed down, it still appears to be solid in 2% to 3% range going forward. I think conditions are good right now.”
Angel Mata, managing director of equity trading at Stifel, Nicolaus Capital Markets, told CNBC’s “Power Lunch” that investors should keep an eye on bank earnings next week.“On Monday and Tuesday, a lot of the banks reporting,” Mata said Friday. “The banks have clearly been one of the most underperforming groups since the beginning of the year. I have a hard time believing that the market can sustain any kind of upward momentum without the banks turning around.”
Federal Reserve policymakers were unanimous in the view last month that their predominant focus should remain on inflation rather than economic weakness. According to minutes of their deliberations released Wednesday, "all members agreed the statement should indicate that the committee's predominant policy concern remains the risk that inflation will fail to moderate as expected."
Subodh Kumar, chief investment strategist at Subodh Kumar Associates, told CNBC’s “Morning Call” that investors need to see increased corporate earnings and a Fed rate cut before putting more money into the equity markets. “I don’t think either of them is going to happen,” Kumar said Friday. “Consensus hopes it will happen by year end, but I think that’s too soon.”
The Federal Reserve should adjust its inflation expectations considering current economic factors, two economists told Liz Claman on “Morning Call.” “My concern in this whole discussion is the whole issue of what is a reasonable range for the Fed,” said Joel Naroff, chief economist at Commerce Bank. “The problem is that we rarely have inflation, a core inflation below 1.5% and almost never have it below 1% so I think the Fed has got a problem here.”