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Stock Market & Financial Investment News

News Breaks
January 2, 2013
14:45 EDTMoody's: 'Cliff' deal not basis for meaningful improvement in U.S. debt ratios
Moody's Investors Service said that the fiscal package passed by both houses of Congress yesterday is a further step in clarifying the medium-term deficit and debt trajectory of the federal government. It does not, however, provide a basis for a meaningful improvement in the government's debt ratios over the medium term. The rating agency expects that further fiscal measures are likely to be taken in coming months that would result in lower future budget deficits, which are necessary if the negative outlook on the government's bond rating is to be returned to stable. On the other hand, lack of further deficit reduction measures could affect the rating negatively. Notably, yesterday's package does not address the federal government's statutory debt limit, which was reached on December 31. The need to raise the debt limit may affect the outcome of future budget negotiations. Moody's said the macroeconomic effects of the package are positive, since it averts the recession that would likely have occurred had personal income taxes gone up for all income levels. However, the increase in the Social Security payroll tax from 4.2% to 6.2% of income that became effective on January 1 will likely be a constraint on growth in coming quarters. Furthermore, expenditure cuts that may be decided in coming months could also affect the rate of GDP growth in the near term. Overall, therefore, the recent package mitigates part of the fiscal drag on the economy associated with the fiscal cliff but does not eliminate it. Moody's added that it believes that the debt limit will eventually be raised and that the risk of default on Treasury bonds is extremely low, this confluence of events adds uncertainty to the outcome of negotiations. However, the spending measures that result from the negotiations will form part of the medium-term outlook for the budget deficit. Moody's will need to consider these measures in assessing the rating outlook. Further revenue measures may also form part of the negotiations. The debt trajectory resulting from this process is likely to determine whether the Aaa rating is returned to a stable outlook or downgraded to Aa1, as Moody's previously stated.
News For NOSYMBOL From The Last 14 Days
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January 27, 2016
10:01 EDTNew Home Sales data reported
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09:55 EDTU.S. New Home Sales Preview
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09:50 EDTU.S. corporate bond update: the calendar is light but is expected to build
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09:41 EDTApple, Boeing, oil all weigh on stocks in early trading
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09:35 EDTWas China's GDP growth 4% and not nearly 8% over the past five years?
Was China's GDP growth 4% and not nearly 8% over the past five years? So says the Conference Board, which used an alternative model of Chinese growth in its latest global economic outlook. The alternative series of GDP estimates adjust for "overstated official Chinese data," says the Board, according to a write-up on Bloomberg. While there have been rumbling for years over the validity of the official growth figures, this is the first time a well respected agency has adopted an alternative model Chinese growth. The Conference Board's model shows growth already slowing significantly since 2011, suggesting that the economy may have already reached a hard landing, notes the article. Of course, such a scenario heightens the need for fundamental reform, as productivity growth would be running at a much slower pace than implied by the official GDP figures.
09:30 EDTEuro$ interest rate futures are mostly lower
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09:08 EDTHouse Budget Committee to hold a hearing
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08:35 EDTEnergy Action: NYMEX crude took a tumble
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08:20 EDTU.S. equities turned more defensive
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07:55 EDTFed funds are opening in the 0.38% area
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07:50 EDTN.Y. FX Outlook
N.Y. FX Outlook: The dollar traded on a mostly softer footing overnight, with the downdraft in oil prices weighing on global equities, and paring back risk appetite. The markets are liable to remain relatively quiet ahead of the 14:00 EST FOMC announcement, where focus will be on the degree of dovishness the Fed reveals. In the meantime, December new home sales are due at 10:00 EST, followed by weekly EIA petroleum inventory data at 10:30 EST.
07:40 EDTU.S. MBA mortgage market index rose 8.8%
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07:30 EDTTreasury Market Outlook: Treasuries are little changed
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07:28 EDTEarnings and oil have futures lower
Stock futures are pointing to a lower open as they continue to follow oil prices, which are down in early trading. Not helping the situation is Apple (AAPL), which is down more than 4% in pre-market trading after issuing disappointing revenue guidance, and shares of AT&T (T), which are down as well following its earnings report last night. The earnings parade will continue today, which will keep investors busy, but they will be waiting on the conclusion of the Fed's two day FOMC meeting and its policy statement which will be released at 2:00 pm ET. In early pre-market trading, Dow futures are 66 points below fair value, Nasdaq futures are 34 points below fair value and S&P futures are 11 points below fair value.
07:05 EDTFX Update: The has dollar traded modestly softer
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07:01 EDTMBA Mortgage Applications Composite Index data reported
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05:45 EDTFX Action: The yen has been trading comparatively neutrally
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05:13 EDTOn The Fly: Morning Wrap-Up for January 27
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05:10 EDTFebruary front month equity options last day to trade is February 19, 2016
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02:30 EDTFX Update: The main currencies are near net unchanged
FX Update: The main currencies are near net unchanged, with the yen having given back intraday gains as most stock markets in Asia rallied, and with oil prices consolidating yesterday's gains. The biggest mover has been the Aussie dollar, which is up 0.4% versus the greenback and by 0.7% against the Kiwi dollar. Australia Q4 CPI came a little hotter than expected, rising to 0.4% q/q, above the median forecast for 0.3%. This contrasted last week's NZ inflation for the same period, which undershoot expectations in falling to 0.1% q/q, propelling AUD-NZD to a seven-week peak at 1.0870. Most dollar pairings, meanwhile, have remained well within respective ranges from yesterday. USD-JPY dipped to a low of 118.04 before recouping above 118.30, and EUR-USD remained mired in the 1.08s. The CNY remained steady, while Chinese December data showed industrial profits contracting 4.7% in December while consumer sentiment ticked up. Moody's said that Beijing's policy support in the pursuit of growth in 2016 will have a credit-negative effect of postponing deleveraging and the reduction of excess capacity.
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