The KUIK Market Update for Wednesday, September 20:
Markets are mixed.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Down
(11)
points
22,360
7:26 AM
S&P500
Down
0.0%
percent
2,506
(0.43)
Nasdaq Composite
Down
-0.1%
percent
6,454
(7.59)
30 Year Treasury
Unchanged
–
Basis Points
2.81
Annual Yield
The Federal Reserve is set to take a leap into the unknown this week by beginning to sell-off some of its $3.7 trillion of bonds and mortgage securities it amassed during the financial crisis. The Fed meets today and tommorw. It’s expected at the end of the meeting to announce it plans to shrink its massive balance sheet beginning in October. Fed Chairman Janet Yellen will hold a press conference to explain the decision.
According to a poll from accounting firm Deloitte, only 8% of companies that are considering going public have moved to the new revenue recognition requirements for for public companies beginning in January 2018. The new rules established by the Financial Accounting Standards Board standardize how companies report revenue, but have a greater impact on companies that have contracts or deferred revenue such as software and technology companies. More than half of companies surveyed believe it will take less than one year to make the accounting changes. Accountants disagree, setting a timeline of 18 to 24 months for full integration of the new standards into their operations.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
