CNBC's Tyler Mathisen looks back at the week's top business and financial stories.» Read More
On "Morning Call," two strategists agreed--naturally enough--that interest rates are a prime stock market mover. But they split on where rates and stocks are headed as the economy enters the fiscal year's second half. Ned Riley, CEO of Riley Asset Management, and Alan Lancz, president of Alan B. Lancz & Associates, offered their predictions to CNBC's Carl Quintanilla.
European equity markets were poised to rally higher next week as the interest-rate tightening cycles in Europe and Britain threatened to rain-in longer term gains.
Stocks may open higher after early weakness on this final day of the second quarter. European markets are mostly lower, and Asia was mixed with Tokyo up 1%. The discovery of an explosive device in a car in London impacted market tone in Europe.
The Federal Reserve left its benchmark interest rate unchanged at 5.25% and said core inflation has "improved modestly," dropping its previous description that inflation as "elevated." However, the Fed reiterated that its main concern was that inflation might fail to moderate.
Growing concerns about credit quality are likely to delay some big leveraged buyouts over the next few months, CNBC's David Faber reported. “It doesn’t mean that any of the announced deals are not going to close, but they may ultimately cost more,” Faber said.
David Sowerby, chief market analyst at Loomis Sayles & Co., told CNBC’s “Squawk Box” that the Federal Reserve will leave interest rates unchanged on Thursday while maintaining their concern about inflation.
U.S. Federal Reserve policy-makers resumed their meeting Thursday and were expected to announce in early afternoon that after two days of deliberation they were leaving target borrowing costs unchanged.
Stocks are flat ahead of the opening, though stock markets worldwide are springing higher on the back of Wall Street's gains Wednesday. The focus today is on the Fed.
Shares of Northern Rock plummeted 12% after the U.K. mortgage lender cut its 2007 profit expectations Wednesday, as higher interest rates weighed on funding costs and the prospects for real estate in Britain.
The Federal Reserve’s two-day meeting on interest rates, inflation and the economy started Wednesday. Is the Fed overly concerned with inflation? Carl Tannenbaum, chief economist at LaSalle Bank, and Paul Kasriel, senior vice president and director of economic research at Northern Trust Company, offered their insights on “Morning Call.”
Stock futures point lower this morning after a weak showing in equities markets worldwide. European stocks are trading lower, and Asian markets were mostly down overnight. Volatility will no doubt be the tone of the day, as the Fed starts its two-day meeting. Durable goods fell 2.8%, below expectations. The dollar slid after the report and Treasurys rallied.
U.S. mortgage applications fell for a second straight week as interest rates remained near recent highs, an industry group said Wednesday.
Keeping inflation under control as the economy emerges from a yearlong sluggish spell is certain to be a matter of lively debate for Federal Reserve policymakers.
Julia Coronado, senior U.S. economist at Barclays Capital, told CNBC’s “Power Lunch” that she believes the Federal Reserve’s primary concern is still inflation -- but that doesn't mean there won't be a rate cut down the line.
It’s unclear how far subprime debt woes will spread, but the fallout is likely to hit Main Street harder than Wall Street, Pimco Founder Bill Gross told CNBC.
Jason Schenker, an economist at Wachovia, told CNBC’s “Morning Call” that he believes 2007 will mark the bottom of the housing market, in starts and sales of new and existing homes. But he expects housing prices to remain flat for the next two or three years -- despite solid economic and demographic growth.
"Risk appetite has started to abate expressed by lower equity markets, rising credit spreads and continued steepness of bond curves."
I got some interesting email replies to my previous post on housing numbers. Take a look: I've returned to California after a six year corporate move to find my Southern California tract house selling for $1 million more than I sold it for in 2001? I am not in the market. The house was barely worth what I sold it for in 2001. I have an excellent credit rating, equity in the bank and am leasing for now. We are Leasing a new 3,100 square foot home in a new development for the price of an apartment. Why buy?
Leon Cooperman, founder of Omega Advisors and former Chair of Goldman Sachs Investment Policy Committee, said he expects stocks to do well the rest of this year and into next year.
With the second half beginning next week, two market analysts joined "Morning Call" to give their outlook for stocks for the remainder of 2007. Charles Bobrinskoy, vice chairman and director of research at Ariel Capital Management, is "somewhere between cautious and bearish," while Patricia Chadwick, president of Ravengate Partners, "is not as worried."