The KUIK Morning Market Report for Tuesday, November 22:
Markets are up.
Index
Direction
Change
Units
Time
Dow
Up
42
points
18,998
9:06 AM
S&P500
Down
-0.2%
percent
2,195
Nasdaq Composite
Up
0.0%
percent
5,370
30 Year Treasury
Down
(3)
Basis Points
2.98
Annual Yield
Marketwatch reports the Federal Reserve is definitely lifting interest rates in December if the market has priced a key contract correctly. According to the trading in federal funds futures contracts, there’s a 100% chance that the Fed will lift interest rates a quarter point to somewhere between a half-point and three-quarters of a point. There’s a slight chance the Fed could be even more aggressive. Last week Fed Chairman Janet Yellen said the central bank may lift interest rates “relatively soon.”
Goldman Sachs says S&P 500 companies will spend about $780 billion on share buybacks in 2017, 30% higher than 2016, helped by corporate tax reform and profits coming from overseas. Buybacks will account for the greatest use of cash for just the second time in 20 years, according to a team of analysts led by David Kostin in a research note. They expect companies to spend $2.6 trillion next year, with 52% investing for growth, in the form of capital spending, research & development, and mergers and acquisitions. The remaining 48% will go to shareholder awards, in the form of share buybacks and dividends.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
