Fed: Guessing Game
Economists are still split as to whether the central bank will start the tightening cycle in September or wait until its October or December meetings. Rate-hike jitters certainly grabbed hold after Wednesday's job market data. In response, traders in the Fed funds futures pushed up the perceived odds of a September hike to 25% from 20%. Not a super-higher number, but moving higher nonetheless. On the contrary, Goldman Sachs said in a note dated Sept. 9 that its analysts expect the Fed to start the hiking cycle at the December meeting.Brazil: Junk
And just like that, another emerging market newsmaker that could influence global markets. Brazil's bonds landed in junk ratings territory. Standard & Poor's cut Brazil's investment-grade credit rating to junk for the first time since 2008, warning that it could lower the grade again in the coming months. Fitch and Moody's still have Brazil at investment grade. Political uncertainty was one reason for S&P's decision. The impact? First, this tugs on overall market confidence. But it could specifically trigger a pension-fund outflow. The downgrade makes lower-rate paper unacceptable under many funds' rules.Apple's Thud?
Apple AAPL shares fell nearly 2% Wednesday after its product parade failed to inspire investors. The tech giant unveiled a business-oriented iPad Pro, a new set of iPhones with so-called 3-D touch technology, and a new-look Apple TV. Note, will you, there's no shortage of analyst notes peppering the social universe and quite a few of them consider Apple—even a boring Apple—priced at a "bargain" after its recent slide. Separately, Apple said Thursday it will tap the euro-zone bond market to fund buybacks and dividends. AAPL shares are higher in early action Thursday. Good trading, JJ @TDAJJKinahan This piece was originally posted here by JJ Kinahan on September 10, 2015.TD Ameritrade, Inc., member FINRA/SIPC. Commentary provided for educational purposes only. Past performance of a security, strategy, or index is no guarantee of future results or investment success. Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.
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