The KUIK Market Update for Friday, January 29:
Markets are up.
Index Direction Change Units Time
Dow Up 181 points 16,251 8:06 AM
S&P500 Up 1.2% percent 1,916
Nasdaq Composite Up 1.2% percent 4,559
30 Year Treasury Down (5) Basis Points 2.74 Annual Yield
The Bank of Japan announced today that it will adopt a negative interest rate policy for the first time, as a sputtering economy, stubbornly low inflation and turbulent global financial markets threaten to undermine Prime Minister Shinzo Abe’s economic-revival plan. The central bank said it cut the deposit rate it pays on cash held at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs and stimulate inflation.
The Chicago Purchasing Managers Inex rose 12.7 points to 55.6, taking it above the 50-mark indicating expansion, accoridng to MNI Indicators. It averaged 47.7 in the fourth quarter, the worst average since the third quarter of 2009. Four of five components rose, including a 20.2-point surge in new orders.
Consumer sentiment fell to 92.0 from 92.6 according to the University of Michigan’s final January reading, below the 92.8 forecast by economists. Current conditions fell while expectations were unchanged.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/bank-of-japan-adopts-unprecedented-negative-interest-rate-2016-01-28
http://www.marketwatch.com/story/chicago-pmi-surges-in-january-2016-01-29
http://www.marketwatch.com/story/consumer-sentiment-weakens-to-920-thanks-to-stock-market-wobbles-2016-01-29
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