Financial Review

Addiction to Oil


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Closing numbers and economic news, including: FOMC plus earnings on tap; Saudis try to end oil addiction; M&A news; free burritos and Area 120 startups. Financial Review by Sinclair Noe for 04-25-2016 DOW – 26 = 17,977 SPX – 3 = 2087 NAS – 10 = 4895 10 Y + .02 = 1.90% OIL + .26 = 42.90 GOLD + 5.70 = 1238.90   The Federal Reserve FOMC meets this week to determine monetary policy; they are not expected to raise interest rates this week, however they might set the stage for a rate hike in June. Earlier this month, Fed Chair Janet Yellen said the U.S. economy was on a solid course with some hints of inflation, so the Federal Reserve was on track for further interest rate hikes. First quarter GDP, to be released on Thursday, is expected to slump to a paltry 0.7% annual rate from a 1.4% rate in the last three months of 2015. It might be tough for the Fed to sound hawkish if it is followed by a weak GDP report.   Traders are also keeping an eye on the outcome of a Bank of Japan meeting on Thursday, with expectations that Japan could push deeper into negative interest rate territory.   Investors have been assessing first-quarter earnings, FactSet just released its latest update of earnings season stats for S&P 500 companies. And the numbers are pretty bad; 76% of companies have beaten analysts’ estimates, but the aggregate earnings decline is -8.9%. That’s actually worse ...
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Financial ReviewBy Sinclair Noe