Darrell Cronk, Wells Fargo, and Ethan Harris, BofA Merrill Lynch, give their perspective on the market's outlook.» Read More
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.
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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.”
Inflation data could play a big role in setting the course for stocks, which so far are looking for direction ahead of the opening. Asia markets were mostly lower, while Europe's stock markets this morning are mostly higher.
Finland's annual inflation rate surged to 2.6 percent in March, the highest figure in almost six years, the government statistics agency said Friday.
U.S. import prices jumped a larger-than-expected 1.7% in March as petroleum prices rose sharply. Jobless Claims rose 19,000 to 342,000 --more than predicted.
Quincy Krosby, chief investment strategist at The Hartford, told CNBC’s “Closing Bell” that a Federal Reserve rate hike probably would push the economy into recession. “I think they have moved closer to neutral than a bias to hike,” Krosby said. “I don’t think they want to hike. If they are forced to, they may. But the repercussions of a hike are going to be, I think, pushing us toward a recession.”
Jim Glassman, senior U.S. economist for JP Morgan Chase, told CNBC’s “Street Signs” that the Federal Reserve’s minutes show concern for growth and inflation.“Inflation concerns aren’t new,” Glassman said Wednesday. “What’s new is the recognition that there are some downside risks to growth. I think the minutes show that (the Fed) is a little more cognizant of the two risks and it’s not just a debate about how much and when to tighten.”
Central banks should only try to minimize unemployment by keeping inflation at bay, Richmond Federal Reserve President Richard Lacker said on Wednesday.
Vinny Catalano, global investment strategist for Blue Marble Research, told CNBC’s “Morning Call” that first-quarter earnings will be “all over the map,” and this will force investors to become highly selective.
Peter Beutel, president of Cameron Hanover, told CNBC’s “Power Lunch” that an agreement to release captured British sailors doesn’t yet remove the “Iranian premium” on the price of crude oil. “I’d say that we added about $6 during the run-up,” Beutel said Wednesday. “So, (the premium) is not out yet. Even though we’ve solved this problem, the larger problem remains-- (Iran’s) nuclear issue. Iran and the West seem to be on a collision course long-term.”
Amanda Kurzendoerfer, commodity analyst at Summit Energy, told CNBC’s “Squawk on the Street” that the surprisingly large drop in gasoline supplies and low refinery capacity could send prices at the pump over $3 a gallon by mid-July.“We could see a three handle,” Kurzendoerfer said Wednesday. “I don’t think it will last long, but it definitely a possibility.”
Thomas Atteberry, analyst and portfolio manager for First Pacific Advisers, told CNBC’s “Power Lunch” that investors might consider large-cap, multi-national companies when picking stocks.“Try to stay away from the financial sectors of the market because they’re very exposed to the consumer,” Atteberry said Tuesday.
St. Louis Fed President Poole said he would lean toward a further rate increase should inflation fail to come down and if the economy was only moderately weak.