Also treasury secretary jack lew says the u. S. Government will hit the debt ceiling by mid october unless Congress Votes to increase the limit by the end of the session the dow fell below 15,000 losing 65 points, the nasdaq was unchanged and s p dropped 7. Gold crossed the 1,400 dollar mark and oil is trading around 106. Jc penneys acking stock. Shares fell monday on word hedge fund manageer bill actman is selling 39 million shares. Hes the single largest share holder in jcp. Tony harris of Performance Trust joins us today. Tony, the market shrugged off that durable goods order number yesterday but today were going to be looking forward to that gdp number. What do you see in the bond market . I think that the bond market has had a change in terms of it caught a bid early in the day on monday and it held the gains throughout the day. You had poor new home sales report back on friday and of course them poor durable goods report on monday. So i think that youre catching a little bit of d
Biz for months now. With the economy in clear recovery, how will it pull back without causing long term Interest Rates to spike. The president s pick for the new fed head, janet yellen is moving forward. She went before the Senate Banking Committee Last week. The full senate could vote this week on her confirmation. With all this on the mind of traders, the markets were tepid late last week. They open this morning with the dow and nasdaq both up a fraction but down for the week. The s p down a tad and off 1. 5 last week. Oil dropped below 97 dollars a barrel while gold closed higher friday up a half a percent for the week. As for the long term on gold, analysts at jp morgan have lowered their forecast on gold by 10 percent. They project 1263 an ounce for 2014 and slightly higher the year after. Ok, lets talk with a trader to get some sense about the day and the week ahead. Phillip streible is with rjo futures. Phil, everyone is talking about tomorrow and wednesdays meeting with the fed
News conference by outgoing fed chair ben bernanke. Wall street is on edge over whether he will disclose a wind down of bond buying stimulus program. Ahead of the meeting stocks went wild monday. The dow pushed up by 130the nasdaq 29 and s p by 12. Gold edge higher by 5 dollars. And oil by 71 cents. A report says a vote to approve janet yellen as the next fed chair could happen thursday. Today, president obama meets with top tech leaders to talk about the healthcare. Gov website and nsa spying. Also a snow snarl is expected for commuters from the midwest to the east coast. Take care on the roads. Glenn schultz of Performance Trust joins us now. Glenn, will it be a terrifying tuesday. Everybodys so concerned about this fed meeting. What is the bond market telling you . The bond market is telling me that theyve handicapped the odds of tapering at around 60 70 . If you compare this to the economists predictions thats about 34 of economists polled said theres going to be a taper. But you a
Technical traders. The s p 500 closed last at 17 82. The next important line of support is 1775. If the market ends below that level, the market could continue a rough tumble. What worries the market is the 2 day Federal Reserve meeting getting underway toda and apples earnings outlook was weaker than predicted. Its an extra busy day for the bond market, Glenn Schultz of Performance Trust joins us now and will the bonds be stressing over the fed meeting that gets under way today . And then the president speaks tonight . In terms of the bond market and the quantitative using program of the Federal Reserves,my expectation is that the Federal Reserve will continue on their Quantitative Easing Program and theyre going to continue on the type tapering of that program. So we are likely going to see another 10 billion reduction in the large scale Assets Purchase Program which is gonna put the Federal Reserve on track to end the large scale Assets Purchase Program sometime in the Second Quarte
And oil slipped 1. 35. In earnings after hours, Online Video Company netflix topped forecasts, but subscriber numbers were lower that expected. And chipmaker Texas Instruments beat the street on earnings and revenue. And a Southwest Airlines landing mishap that closed down laguardia aiport last night is under investigation. The boeing 737s nose gear reportedly collapsed. Glenn schultz of Performance Trust is studying the bond market for us today. Good morning glenn, and whats likely to move the market this week . Good morning. The bond market is looking at a couple of things. One of the questions on the bond markets mind is what is higher Mortgage Rate going to do with respect for the demand for housing and the housing recovery Going Forward . So monday we had existing home sales. That was down 1. 2 vs. A consensus of 1. 5 . But the market really came to realize that the decline in the existing home sales was due to tight supply. This morning we have home prices. The market is going to