To raise rates it could increase in inflation. He doesnt conclude that would happen but we need to think about that. He repeats kind of the normal argue amount for raising rates and says f1 policy remains extreme and inflation is close to target. Not strictly endorsing but saying thats the normal argument for why rates should be normalized. Former Federal Reserve chairman ben bernanke out with a blog about negative Interest Rates and says the fed is not out of ammunition but there are signs Monetary Policy is reaching its limits. They include lowering rates but not much to do there. A quarter point. Forward guidance could be powerful. More quantityive easing and negative Interest Rates. What does he say sna that evidence from europe suggests they might be more powerful than had previously been thought and argues anxiety over negative rates could be overdone. Banks could still earn a profit by charging a higher rate than they pay. Bernanke also says negative rates have modest benefits a
Right now and thats what the markets rallying on at the moment. Pore sure. Were focused on reopening of the government. Market continuing to see flows into stocks. Take a look at investors cannot take this weekend off. What happens at the white house between president s and republicans could determine what happens when that bell rings monday morning. If the deal goes sideways, so could this market. Well be talking with republican buck mckeon, who was in the room with the president when the talks began in earnest. Jpmorgan, they take a loss. Ceo jamie dimon not at a loss for words. Billions in litigation fees and legal problems swinging his bank to that loss for the quarter. Hes now speaking out, suggesting the government is not being reasonable or fair. Well have more on this still developing story coming up on todays closing bell. Lets check the stock market as we approach the final stretch for the week. Dow jones industrial average shy of the high of the day with a gain of 8 5 85 poi
Helped the group overall. It was the biggest jump we had seen increase in over 33 years, however you are seeing pulling back. Kb homes within a barrel. People buy between now and spring because that is the hot season. Adam Nicole Petallides, thank you very much. Wall streets fear gauge is still gaining ground. In the pits of the cme. A whole lot to talk about. On track trifold largest streakf gains since last year. Phil you consider a market that had no fear. Stocks are going up, the vexed at a low level. All changing, up almost 18 in those last six days and i can see why. The party in the stock market has been going on for quite some time. We had to face important job numbers this weekend as well as a strong possibility the fed is going to lay the groundwork for tapering before ben bernanke leaves office. Might as well give ben bernanke all the heat so janet yellen doesnt have to take it. They have a right to fear. It impacted precious metals. Iif you are not afraid of anything, buy s
Falling 9 points. The commodities fell as well. Gold was down 10 and oil 1. 22. A jury says bank of america is liable for countrywide mortgage fraud. The department of justice called countrywide into quesiton for selling shoddy loans in a program called hustle. Countrywide was a unit of bofa. And t moble is dropping contracts on tablets and instead selling the devices through monthly installments. Todd horwitz of average joe options joins us now. We had a selloff in the market yesterday . Will there be more selling ahead . Good morning angie. It certainly looks like theres gonna be more selling. I think some of the key things you want to take away from yesterdays trading was a little bit of a spike in volatility which we also had on tuesday. I think you wanna take a look at some of the higher fliers who are under a little bit of pressure. So i think that this is just the start of some more selling to come. Were also watching whats going on with crude prices. The price of crude is going
Ukraine. But stronger than expected ism Services Number lifted the mood on wall street. The dow gained 18, the s p 4 trading near a record high and the nasdaq 14. With apple closing above 600 for the First Time Since 2012. Gold is above 1300 per ounce and oil below 100 per barrel. Another high ranking engineer is leaving gm. It follows the delayed recall of small cars with shakey ignition switches. Coke drops the controversial ingredient brominated Vegetable Oil from its drinks. In our trader talk this mornig brian battle director of Performance Trust capital is on the Trading Floor for us. Good morning to you brian. Good morning. Good to be here. Whats your take on treasuries . There was quite a move yesterday. The market is in interesting spot. Were kind of at the lows of rates. Just when you think rates will be higher, the feds leaving the market. We have auctions of threes, tens and thirties and the stock markets at the high so its a very interesting treasury market. Rates might be