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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.
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December 8, 2014
05:58 EDTOn The Fly: Morning Wrap-Up for December 8
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05:51 EDTDecember front month equity options last day to trade is December 19, 2014
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04:35 EDTFX Action: USD-JPY has dipped to the low 1.21s
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03:15 EDTFX Update: The dollar continued to reign supreme
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December 6, 2014
23:51 EDT 3-Month Bill Announcement to be released at 11:00
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23:51 EDT 4-Week Bill Auction to be released at 11:30
23:51 EDT 6-Month Bill Announcement to be released at 11:00
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23:51 EDT 3-Month Bill Auction to be released at 11:30
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23:51 EDT 4-Week Bill Announcement to be released at 11:00
23:51 EDT 6-Month Bill Auction to be released at 11:30
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16:50 EDTNFIB Small Business Optimism Index level to be reported at 07:30
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04:04 EDTConsumer Sentiment Index to be reported at 09:55
Consumer Sentiment Index will be reported at 09:55 . Current consensus is 89.5
04:04 EDTRetail Sales less autos to be reported at 08:30
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04:04 EDTBusiness Inventories to be reported at 10:00
October Business Inventories will be reported at 10:00 . Current consensus is 0.3% for the month
04:04 EDTPPI-FD to be reported at 08:30
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04:04 EDTPPI-FD less food & energy to be reported at 08:30
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04:04 EDTRetail Sales to be reported at 08:30
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04:04 EDTTreasury Budget to be reported at 14:00
November Treasury Budget will be reported at 14:00 . Current consensus is $[63.0]B
04:04 EDTWholesale Trade Inventories to be reported at 10:00
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16:50 EDTJOLTS Job Openings to be reported at 10:00
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