Morning Market Report 10/8/2014

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
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