As Expected, the Federal Reserve Cuts the Fed Funds Rate

On September 18, 2019, the Federal Reserve Open Market Committee voted to cut the fed funds rate one quarter of a point to a range of 1.75-2.00%. The vote was 7-3, with one governor voting to cut by one-half of a point and others voting to keep rates unchanged. In addition, the Fed released its...

While most investors and analysts have been focused on the stock market’s recovery to levels near all-time highs, the fixed-income market has made a sharp move of its own. Looking at the key Treasury market, the ten-year Note yield has risen from 1.43% in early September to the 1.80% level today. Similarly…

On September 11, 2019, the Bureau of Labor Statistics announced producer price inflation data for the month of August. Final demand prices rose 0.1% in August, compared to an increase of 0.2% in July and 0.1% in June. The Core rate, excluding food and energy, rose 0.4% in August, after a 0.1% decline…

On Friday, September 6, 2019, the Department of Labor reported the August employment situation. Job growth for August came in at 130,000 well below the June figure of 178,000 and the July number of 159,000. The June and July figures were also adjusted downward by a total of 20,000 from the original estimates…

As part of our continuing scrutiny of the S/P 500 Index earnings forecasts, our latest update shows slow earnings growth in 2019 and an increased rate for 2020. Specifically, the FACTSET estimate for 2019 is $165.36, up 2.4% from the 2018 level. For next year, the forecast expects earnings of $182.72…