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Wednesday, July 11, 2012

Traders Hope for Signals From Fed as Earnings Woes Mount

The wonderful modern and beautiful Marriott Ho...
The wonderful modern and beautiful Marriott Hotel London-Heathrow International Airport - Business hotel and vacation dream at this Landmark Airport! 2008! Beauty in hospitality by Bill Marriott! (Photo credit: || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL ||)
Even the slightest prospect of more Fed easing has provided some of the underpinnings for a stock market that has become increasingly uneasy about the second-quarter earnings period. After Friday's disappointing June jobs report, expectations for more action from the Fed has increased.
“People will look for that, but they are likely to be disappointed,” said Zane Brown, fixed income strategist at Lord Abbett“With 1.5 percent on the 10-year, what else are they going to do?” he said. “Are they really going to be able to buy mortgages or add to their Treasury holdings to lower rates even more than they already are?” Brown said the flight-to-quality trade has pushed the market in the Fed’s direction already and further asset purchases, or quantitative easing [cnbc explains] , would probably not do much.
“Even the most liberal members of the Fed have said that they’re going to wait until there’s more signs of a slowdown,” he said. Besides the Fed minutes, released at 2 p.m. ET, there is international trade data Wednesday at 8:30 a.m. and wholesale trade at 10 a.m. There is also a $21 billion 10-year auction at 1 p.m., and Brown said he expects it to be well bid. The USDA also releases its latest global crop report and U.S. livestock report at 8:30 a.m. ET.
There are a few earnings reports, including Marriott [MAR  38.17    -0.79  (-2.03%)  ] ahead of the bell, and Texas Industries [TXI  39.47    -1.75  (-4.25%)   ], after the close. Chevron [CVX  103.88    -0.58  (-0.56%)   ] reports interim results after the bell. ... Continue to read.
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