CNBC's Rick Santelli discusses the latest action in the bond market, including compression in the 10-year Treasury, and a look at the U.S. dollar.» Read More
The Bank of Korea on Thursday raised its key interest rate for the first time in nearly a year, amid expected strengthening economic growth and possible stronger inflation in the second half of the year.
Despite anxiety over subprime loans, tightening credit and weak housing, the U.S. stock market seems to keep bouncing back. Why? On "Morning Call," Bill Schultz, chief investment officer at McQueen, Ball & Associates, and David Dietze, president & chief investment strategist at Point View Financial Services, offered their takes.
The U.S. stock market headed toward an indifferent opening with futures bouncing above and below fair value after Tuesday's selloff. A new round of subprime debt fears on Wall Street spurred selling in equities markets around the world.
European banking stocks were among the hardest hit in a global selloff Wednesday as investors feared U.S. subprime weakness could spread to European mortgage lenders.
The market is on Fed watch today as traders await a speech by Fed Chairman Ben Bernanke on inflation. Stocks are weaker ahead of the open this morning after some negative earnings news. European markets are trading lower and Asia was mixed overnight.
With the U.S. economy creating jobs at a steady pace, the Federal Reserve will need several months of softer price gains and evidence wages are not picking up before its anxiety about inflation subsides.
Peter Andersen, portfolio manager at Dreman Value Management, told CNBC’s “Morning Call” that a slight dip in second-quarter earnings won’t kill the rally. “I think [earnings will] probably will slow down a bit,” Andersen said Monday. “We’ve had a phenomenal rate of increase over the past two years. To take a little bit of a breather in one quarter, I don’t think that’s much of a concern.”
Boom! Monday morning and the Chinese markets notch up 3% intra-session. Oil hangs on to $75 a barrel, the dollar is firm and European bourses are fired up to make early gains. If the de-risking trade is on-going into what traditionally should be a Summer slowdown then it is proving tricky finding the evidence.
Britain's Premier Foods Plc said trading had been hit by interest rate rises and its shares slipped more than 5% to a seven-month low after analysts trimmed their earnings forecasts.
British housebuilder Bovis Homes said on Monday its first-half profit met its expectations but struck a cautious note on prospects and reported a slowdown in visitors and reservations.
Jordan Kimmel, market strategist at National Securities, told CNBC’s “Power Lunch” that the U.S. economy is strong and the market will go higher. Elizabeth Miller, managing director at Trevor Stewart Burton & Jacobsen, agreed that economic conditions are good: “I think we’ve got a stool with all three legs: global liquidity, decent earnings growth, and reasonable valuations.”
Michael Darda, chief economist at MKM Partners, told CNBC’s “Morning Call” that Friday’s strong jobs report probably means the Federal Reserve will increase interest rates. John Ryding, chief U.S. economist at Bear Stearns, believes the Fed will stay "on hold for a while " -- and then likely raise rates.
Market pros will be looking closely at the tech sector in the upcoming earnings season, but for investors seeking a quick pop, they need look no further than the energy sector as oil prices remain at record levels.
Current U.S. interest rate policy should promote a further drop in inflation although risks are still skewed toward higher prices, San Francisco Federal Reserve President Janet Yellen said on Thursday.
Sam Stovall, chief investment strategist at Standard & Poor’s, told CNBC’s “Closing Bell” that he expects the S&P 500 to close the year at about 1,550 -- but those taking a more cautious view peg the index at about 1,510.
Ahead of the U.S. Labor Department's jobs report on Friday, ADP Employer Services predicts that private employers added 150,000 positions for June. But two experts take issue with ADP's calculation. David Wyss, chief economist at Standard and Poor's, and John Silvia, chief economist at Wachovia, joined "Power Lunch" to discuss their weaker job views -- and what they think the Federal Reserve will do about them.
The second half of this year should be better for bonds than the "miserable" first half, said Jack Malvey, a fixed-income strategist at Lehman Brothers, on "Morning Call." "Collectively, investors had half a percent return," Malvey said about the first half of 2007. He added, bond risk will continue until at least September or October.
Walter Gerasimowicz, founder and chief investment strategist, Meditron Asset Management, told CNBC’s “Power Lunch” that a liquidity crunch could take the steam out of the current market.
The European Central Bank kept interest rates steady at 4% Thursday, as widely expected.
A bounce back in takeover activity, including Blackstone's bold $26 billion bid for Hilton, is giving strength to stock futures ahead of the opening on the second leg of this holiday-shortened week.