CNBC's Rick Santelli discusses bond prices and yields.» Read More
The U.S. economy is poised for moderate growth and lower inflation, but there is no guarantee core inflation will continue to ease, Federal Reserve Vice Chairman Donald Kohn said.
Job growth and worker wages climbed strongly in December, suggesting the labor market remains very tight.
The Dow, Nasdaq and S&P 500 are down this morning after a better-than-expected jobs report. That’s right, healthy employment numbers have caused a dip in the market. Traders appear to be more concerned with the Fed these days, and the robust report could mean there's no rate cut in the near future. William O’Neil’s Stephen Porpora can’t understand why everyone is so surprised. He appeared on "Squawk on the Street."
Bear Stearns Chief Investment Strategist Francois Trahan has the second highest forecast for the market in 2007. He says there will be a different dynamic at work this year compared with 2006, though. While earnings fueled growth last year, look for the first multiple expansion in four years to drive stocks this time around.
Stocks look set to open lower as concerns about the direction of interest rates hangs over the market. Yesterday's turbulent move in stock indexes came on a wave of record trading volume. Some traders are telling us the high level of intraday volatility will be a theme for 2007 after a period of relative calm.
As we end for today, we can safely report it's been a banner year for stocks--by just about everyone's measuring stick. Bonds didn't so bad either. Blue chips were certainly the big standouts of 2006. The Dow Jones industrial average--the index of 30 of the nation’s biggest companies, hit record levels dozens of times since closing at 12,011.73 on Oct. 19. It's since surged to an intra-day high of 12,529.87. All this despite....
His economic forecast for 2006 was spot on – and now he’s been named "Most Accurate Economist of the Year." On today's "Street Signs" CNBC's Erin Burnett revealed who "he" is – and the warning he has for 2007. BusinessWeek has named Kenneth Mayland “Economic Forecaster of the Year.” (He’s is the Chief Economist with Clearview Economics)....
There's been a lot of speculation in the market lately that we've come so far so fast a correction is inevitable. But not according to our "market maven" -- Hennessey Funds President Neil Hennessey. On "Power Lunch," he said the Dow could jump as much as 20% next year, surpassing 15,000 on the upside.
Remembering President Ford: Clearly a story for all audiences, but certainly one with economic and business implications. President Ford’s death recalled an economic era that was high on the Misery Index: a plunging stock market, oil embargoes, a move towards hyperinflation. As Senior Economics Correspondent Steve Liesman pointed out during our special coverage, these were largely problems that Mr. Ford inherited rather than created.
Robert Hormats--who served on the National Security Council during President Gerald Ford’s administration--appeared on “Morning Call” to give his take on the 38th president of the U.S. As we’ve been reporting all morning, President Ford died last night at the age of 93. “He may not have been the greatest president in this country’s history,” Hormats said, “but he was certainly one of the most decent.”
As we told you--President Gerald Ford passed away last night. This morning friends and family are remembering the nation’s 38th president. On CNBC’s “Squawk Box” the team talked more about his life and his legacy. Leo Hindery, Managing Partner at Intermedia Partners said Gerald Ford will be remembered for one single moment in history, taking over as Commander-in-Chief after the Watergate scandal had torn the nation apart.
Look for inflation to improve in the year ahead with the U.S. economy returning to the "comfort zone."
Both the Dow Jones Industrial Average and the S&P 500 ended the day higher – with the Dow setting another record, closing up 30 points and the S&P up 3 – all this despite worrisome economic data coming in the form of a rise in wholesale prices and a decline in housing permits. The NASDAQ couldn’t keep up, falling 6 points on continued weakness in the technology sector.
We told you earlier about the U.S. economic reports out today. And it seems inflation is back or at least it looks that way according to the latest wholesale numbers. November's overall PPI rose to a 32 year high. But looking back at last week--the data suggested consumer inflation was tame. So--can the government's data really be trusted? Is inflation a risk or not? CNBC’s Liz Claman asked two of the nation’s most celebrated economists.
Key U.S. economic data were released this morning. The Producer Price Index climbed 2% in November – 1.3% excluding food and energy. Also, housing starts were up 1.58 million units in November. That’s a 6.7% jump compared with a 13.7% drop in October. CNBC’s Steve Liesman and UBS Investment Research Chief U.S. Economist Maury Harris appeared on “Squawk Box” to break down the numbers.
In the last week before Christmas Scrooge is no where to be seen. The skeptics are being driven from the markets. It is nigh on impossible to find a strategist at the moment prepared to come on TV and tell you not to own lots of stocks going into 2007. Giles Keating, Head of Research at Credit Suisse is a case in point, it doesn't get much more Goldilocks than this: U.S. soft landing then reacceleration of growth in the second half of the year, Europe outperforms the U.S., and Japan (A STINKER THIS YEAR) recovers further. Safe in emerging markets, but hard to find value in bond markets. Inflation doesn’t threaten the party and corporate profits continue to roll along nicely, with partial confirmation from another guest –- Ed Thompson, Gartner (the tech research people) –- that corporate spending on software and IT is, if anything, picking up.
The Factoid Factory: If you’re a regular viewer of CNBC, you’re probably familiar with the dozens of market factoids we put on the screen. “Dow Hits New Intraday High”. “S&P 500 at 6-Year High”. “Nasdaq Could Close At Best Level Since The Dawn Of Time”. etc. T hose factoids are the responsibility of the Breaking News Desk....
Now that economists have had a chance to absorb today’s core CPI numbers, predictions abound as to how the Federal Reserve will react in 2007. Bill Griffeth quizzed two analysts during “Power Lunch.” They seem to agree a rate cut is coming – it’s just a question of when.
As we reported this morning, core inflation was unchanged in November. The market responded by shooting toward another record in the Dow. The index is just 30 points away from 12,500 after hitting a record 12,400 close yesterday. But not all economists trust the numbers. As Brian Sack of Macroeconomic Advisers said on “Morning Call” today, it’s “too early to sound the ‘all clear.’ ”
Inflation in the 12 nations using the euro currency rose to 1.8% in November, up 0.2% point from 1.6% in October, when it stood at its lowest of the year, the EU statistics agency Eurostat estimated on Thursday.