Tuesday, December 13, 2011
Fed steps up to the mic
The chase by Marty Cej:
Monetary policy will be front and centre at BNN today. Bank of Canada Governor Mark Carney sits down with Howard Green at 12:30 p.m. ET for a conversation about the European morass, global economic challenges, financial regulation and how Canadian companies must step up and save the world… or else.
The Federal Reserve is expected to make some indication today -- however subtle -- that another round of quantitative easing is not a done deal. Recent U.S. economic data has been surprisingly robust, helping to stoke optimism that while European leaders shuffle towards a solution to their debt crisis, the world’s largest economy is slowing but surely regaining its composure.
Chairman Bernanke has been trying to improve the transparency of the Fed’s operations and provide clearer signals to markets, companies and consumers. Today, he is likely to take another big step in that direction. The statement is scheduled for 2:15 p.m. ET.
We have several corporate stories we’ll have to pursue through the morning, including the biggest-ever order for Boeing jets. Southwest Airlines ordered 150 737 MAX airplanes and 58 “Next-Generation” 737s.
The dollar value is about $19 billion. The new orders speak to the global push by airlines to cut costs with more fuel efficient planes. We need to ask again where Bombardier fits in this story.
Best Buy missed third-quarter earnings expectations by 4 cents but reiterated its full-year forecast.
Its numbers come just as investors digest a smaller than expected increase in U.S. retail sales. Shoppers drove sales up 0.2 percent last month, compared with expectations for a gain of 0.6 percent. The preceding month was revised higher to 0.6 percent from 0.5 percent. The question now is whether an early surge in holiday shopping will persist through the actual holidays.
With Research In Motion’s earnings just two days away, analysts at JPMorgan say the company is “increasingly likely” to delay the launch of its BlackBerry 10 phones in the second half of next year, a disappointment the company and shareholders can hardly afford just now. We will test JPMorgan’s assumptions and question the persistent speculation about a sale of the company with analyst Pierre Ferragu of Sanford Bernstein at 9:50 a.m. ET.
Newsletter writer Dennis Gartman goes to great pains to reiterate that he is a trader and that he will hold a position until that position is no longer profitable. In his words, “a trend in motion tends to stay in motion… until it stops.” After selling his gold holdings yesterday, he proclaims this morning “the death of a bull.” We gotta talk gold today. It has dropped down through its 50-day and 100-day moving averages but still has a long way before it bounces against the resilient 200-day moving average. Has Gartman sold too soon? Let’s find out.
I’m running late and the make-up people are breathing down my neck. And brandishing brushes and puffs.
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