A sell-off in chip stocks intensified following a report that chipmakers are cutting ties with Huawei after the Trump administration's ban.Marketsread more
Ford Motor said Monday that it is laying off about 7,000 salaried workers, about 10% of that global workforce, as part of a restructuring plan designed to save the No. 2...Autosread more
President Trump stands a chance of creating a new economic world order in his China trade fight, says the chief economic advisor of Allianz.Economyread more
Most U.S. hedge funds aren't expecting another big stock market sell-off as more firms curb bets on volatility, according to Nomura.Marketsread more
The S&P 500 is only about 3% from its recent record high despite a tariff panic sell-off, negative investor sentiment and stock outflows.Trading Nationread more
More than 170 shoe retailers, including Nike, Under Armour, Adidas, Foot Locker, Ugg and Off Broadway Shoe Warehouse, have penned a letter to the White House asking President...Retailread more
Health officials confirmed another 41 measles cases last week, the Centers for Disease Control and Prevention said Monday, bringing the total to 880 for the year, already the...Health and Scienceread more
People investing in some technology stocks should not expect them to go up anytime soon, warns the "Mad Money" host.Investingread more
Google has suspended business activity involving the transfer of hardware, software and key technical services with Huawei. Analysts say that could be a big blow to the...Technologyread more
Little Caesars will sell a pizza topped with plant-based sausage crumbles made by Impossible Foods for the pizza chain. This marks the first time a national pizza chain is...Restaurantsread more
Wedbush cuts its price target on Tesla shares to $230 from $275.Investingread more
If Fed Chair Janet Yellen has her way, there likely will be two rate hikes this year, contrary to current market expectations.
While Yellen didn't overtly express that desire, there was one key section of the speech she prepared Monday that strongly signaled two hikes on the way:
Next week, concurrent with our policy meeting, the FOMC participants will release a new set of economic projections. Those could, of course, differ from the previous set of such projections in March. But speaking for myself, although the economy recently has been affected by a mix of countervailing forces, I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones.
The translation is fairly simple: Each quarter, the Federal Open Market Committee releases its Summary of Economic Projections, which is basically where members feel the economy is going and what the likely path of the Fed's interest rate target will be.
At the March meeting, FOMC officials indicated that two rate hikes are likely this year. Yellen's remarks indicate her opinion has not changed since then.
"That's still her sense. She's still cautiously optimistic about the economy," said David Blitzer, chairman and managing director at S&P Dow Jones Indices. "She's just watching the data, and right now if anyone could read her mind she's still expecting two rate hikes before the end of the year."
With the chair highly adept so far at consensus building, the likelihood should increase that the Fed will move twice, even though it's something the market currently does not expect.
After the Yellen speech, the market was assigning very little chance of a hike this summer — just a 4 percent probability for June and 31 percent for July. September had a 52 percent probability, just as it did before the speech. But the CME's Fed tracker was indicating just a 21 percent chance for a second hike by December.
"What you're seeing in Yellen's comments today is the Fed is not willing to abandon the promise of at least two rate hikes later this year," said Michael Arone, chief investment strategist for State Street Global Advisors. "The Fed's saying, hold on a minute, there are a number of positives that are occurring and we're holding tight to the idea that we could be raising rates a couple times this year."