| The KUIK Morning Market Report for Wednesday, October 8: | |||||||
| Markets are flat. | |||||||
| Index | Direction | Change | Units | Time | Change | ||
| Dow | Up | 14 | points | 16,733 | 7:20 AM | ||
| S&P500 | Up | 0.1% | percent | 1,936 | 1.06 | ||
| Nasdaq Composite | Up | 0.0% | percent | 4,387 | 1.88 | ||
| 30 Year Treasury | Down | (1) | Basis Points | 3.05 | Annual Yield | ||
| Many indicators point to more slack in the labor market than indicated by the unemployment rate alone, said Charles Evans, the president of the Chicago Fed,today. In a speech he said “It is hard to imagine a robust labor market without solid growth in wages.” 3% to 4% growth would be more normal than the 2% rate experienced over the past six years. Evans said said he thinks the Fed should be “exceptionally patient” before it raises short-term interest rates for the first time.He will be a voting member of the Fed policy committee next year. | |||||||
| A tough exit from low interest rates by the Federal Reserve risks $3.8 trillion of losses to global bond portfolios, according to the International Monetary Fund in its latest global financial stability report. The IMF came up with the $3.8 trillion figure by assuming a rapid adjustment that causes interest rates to go back to historic norms and credit risk premiums to normalize, with moves of 1%s each. That would trigger losses by bonds of more than 8%, which could “trigger significant disruption in global markets.” | |||||||
| Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK. | |||||||
| http://www.marketwatch.com/story/fed-evans-jobless-rate-overstates-labor-market-health-2014-10-08 | |||||||
| http://www.marketwatch.com/story/the-imfs-38-trillion-warning-to-the-fed-2014-10-08 | |||||||
| For today’s Morning Market Report click to listen-> | |||||||