Good thursday morning. Thanks for joining us on squawk alley. Jon fortt, david faber with me at post 9. Carl quintanilla has the day off. We are still within the reach of dow 20,000, although it seems we are gate geting a little further away than we were at the beginning of the week. Blue chip index hovering. A big story in the runup so where we are now has been financials. The sector on a tear since the election and could help us push past dow 20,000 if and when the momentum comes back to the market. Lets bring in jim mcdonald, chief investment strategist at Northern Trust Asset Management and marty, bank and equity strategie strategies. Marty, if you had thought this would be the headline on january 1st of this year, i mean, so many people didnt see this coming for the banks because they had been repressed for so long. But the question now is what is fair value for this group . Well, you need to put in context how you started the year, which was, you know, the downturn of energy, loo
Shrink the feds Balance Sheet. David . David were goined by mr. Campbell who covers banks for bloomberg and alice williams. She was a banker for Morgan Stanley and u. B. S. Lets start with the numbers because they broke 15 minutes ago now. Theyre basically up across the board according to estimates and last year. Mr. Campbell thats right. Really what this is about is the expense story. It looks like thats our initial read, noninterest expenses are lower than analysts had expected so bank of america did better on that. Credit cost provisions are ower than analysts expected. Thats a good story. People may have questions on Revenue Growth. Bank of america came up short on Net Interest Income with Interest Rates rising a bit during the quarter. Theres interest there. Bond trade chg was going to be there were a lot of good expectations for bond trading this quarter. Bank of america came in short on that. David focus on the trading because it came in low. As you point out the Fourth Quarter
And it is just past 8 00 a. M. , liu. i am betty yvonne, the Philadelphia Fed president coming out and saying, wait a minute. The data supports it. Next month, we might see a rate hike. We will see how the markets react to that. Yes, and john williams, what we saw last week, it really moved markets, because this wage number that we saw is still showing that inflation might be in some areas of the economy. There is still some slack there. Ame hard data, we could see rate hike in march and that would be a big thing to watch as we do see some risk off tone, and japan starts to open. This is the latest. And is itht, yvonne, good enough is essentially what we are looking at. This is slightly better in terms of tone. A consolation when you look at goldbach abovend back above its 100Day Moving Average. Was at least a 10 gain in gold prices. That blew past the 100Day Moving Averages, and now, we are watching the 200day. Dollar swissie. And having a look at the equity markets at the moment, we
Front of the new congress. She hints at any rate hike in the next few months. And shares in toshiba nosedive yet again as the japanese conglomerate faces a 6 billion write down. It is Asia Business report. Good morning, asia. Hello, world. Markets have been buzzing overnight as the head of the Us Central Bank said an Interest Rate rise could come as early as next month. In the sme annual testimony to congress, janet yellen set of hawkish tone, saying it is unwise to wait too long to hike rates. Financial stocks in the us lifted. The broader s p index closing higher for a fourth consecutive session. This is how asian shares are trading in early trade on wednesday. All in positive territory. More analysis in a moment but that hear what she had to say. As i noted on previous occasions, waiting too long to remove accommodation would be unwise. Potentially requiring the fomc to raise rates rapidly which could risk disrupting Financial Markets and pushing the economy into recession. At our u
First Abigail Doolittle tells us everything going on in the markets. Small small gains for the nasdaq but nonetheless looking at it caused with the reflation trade, the dow and s p 500 trading lower, the doubt on pace for its worst day in the month of february. Thething else about today, first day in seven trading sessions that we do not have some sort of record high for these three major averages. A bit of a pause in the reflation trade. We have stocks close to the record highs and still do not have a 1 move for the s p 500. ,hen we go into the bloomberg the top orange line is a 1 move up in the bottom line is it one person move down. We are now on day 49 without a move up or down. Day 89 without a move to the downside, the last time that happened was in 2016. Stocks trading to alltime highs on the reflation trade, the risk rally, we do not have any really big conviction behind it or big moves. The last view times the other ranges broke it was on massive volatility so when this tradin