Morning Market Report 2/22/2018

The KUIK Morning Market Report for Thursday, February 22:

Markets are up.

Index

Direction

Change

Units

Index

Time

Change

Dow Jones Industrial Average

Up

                    119

 points

          24,916

7:12 AM

S&P500

Up

0.5%

percent

           2,752

Nasdaq Composite

Up

0.5%

percent

           7,256

30 Year Treasury

Down

                       (2)

Basis Points

             3.20

Annual Yield

The Labor Department reports that initial claims for uemployment benefits fell by 7,000 to 222,000 the week ended February 17, for the second lowest level since the end of the 2009 recession. Economists expected 230,000. Continuing claims fell by by 73,000 to 1.88 million the week before.

Minutes of the Jan. 30-31 Federal Open Market Committee meeting released Wednesday show Fed officials see a stronger economy than at the end of 2017 and that more rate hikes then they expected are coming.  The strengthening “increased the likelihood that a gradual upward trajectory of the federal funds rate would be appropriate.” The market was anticipating three quarter point hikes in the Fed Funds rate this year. The minutes show that most officials thought inflation would move up this year towards the Fed’s 2% target. But only a “few” of the Fed’s 12 districts reported that businesses in their regions had pricing power. Minority of dovish Fed members thought inflation would continue to “fall short” of the 2% target because the Trump tax cuts would lead firms to cut prices in order to remain competitive or to gain market share.

Sign up for a  Social Security and Retirement Analysis at brcapitalinc.com/kuik. Serving the West Side first, I am Bill Roller for 1360 KUIK.

www.marketwatch.com/story/us-jobless-claims-drop-7000-to-222000-and-fall-back-to-45-year-low-2018-02-22

www.marketwatch.com/story/fed-minutes-stronger-outlook-increases-the-chance-of-more-rate-hikes-2018-02-21

For today’s Morning Market Report click to listen->