Monday | November 17, 2014
- Economic data for the week was somewhat mixed. Applications for U.S. unemployment benefits rose more than forecasted last week, reversing the trend that brought claims close to a 14-year low. The Commerce Department's Retail Sales figure climbed 0.5% in October after being little changed in the prior month. Retailers are expected to add temporary positions to help assist with the year-end holiday rush.
- On Thursday, New York Federal Reserve President William Dudley stated that market expectations of a rate increase in mid-2015 or later are reasonable. U.S. policy makers have kept their benchmark target for overnight lending between banks in a range of 0.00% - 0.25% since December 2008.
- WTI crude dropped to a four-year low, settling below $75 per barrel on Thursday. Oil has collapsed into a bear market as OPEC continues to relinquish its price-setting role and reduce export prices to the U.S. where output has climbed to its highest levels in more than three decades. OPEC is scheduled to meet next in Vienna on November 27th.
- The market will anticipate the secondary release of 3rd quarter GDP on November 25th. The first print displayed a strong 3.5% QoQ growth, exceeding expectations of 3.0%. While Fed speak recently has been dovish, members continue to reference key indicators such as labor markets, economic growth, and inflationary data as a basis for revising their current policy stances.
- Minutes from the Federal Reserve's October meeting will be released on Wednesday, and market participants will look for further guidance on when the first rate hike may occur. Fed members Evans, Kocherlakota, Tarullo, Mester, and Williams all will be on the speaking circuit this week.
The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.