Financial Review

Dovish Indeed


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Fed minutes mixed with a hint of dovishness. Trade deficit grows on stronger dollar. ISM service side up. UK RE funds halt redemptions. Keep calm and move to Berlin or Paris. Gold up. Medivation on the block. PBGC and Central States Pension going broke. Messi messed up but misses another penalty. Financial Review by Sinclair Noe for 07-06-2016   DOW + 78 = 17,918 SPX + 11 = 2099 NAS + 36 = 4859 10 Y + .02 = 1.38% OIL + 1.27 = 47.87 GOLD + 7.00 = 1364.20 Silver + .14 = 20.16   The Federal Reserve released the minutes of the June FOMC meeting. When the central bank met in mid-June, an abysmal May jobs report (just 38,000 new jobs in May) had just startled markets, and the upcoming British referendum on European Union membership loomed large – an event that certainly had the Fed worried. But beyond that, what was the Fed thinking? Were they confident of a recovery and chomping at the bit to hike rates, or were they more concerned that the economy was still too fragile for higher rates?   Turns out, the Fed was mixed. Some of the policymakers thought the weak jobs report was an aberration; others thought “the lower rate of payroll gains could instead be indicative of a broader slowdown in growth of economic activity.”  Even though retail sales were strong in April and May, “a few participants expressed caution.” Some officials thought business investment could pick up, particularly ...
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Financial ReviewBy Sinclair Noe