Stock futures up ahead of Fed's Jackson Hole symposium

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CNBC 27 August, 2021 - 02:26am 60 views

When is fed Jackson Hole meeting?

The Federal Reserve Bank of Kansas City will hold its 45th annual Economic Policy Symposium virtually this year, as opposed to in its traditional Jackson Hole setting in Wyoming. The event will kick off on Friday, Aug. 27. Fox BusinessFed's Jackson Hole Symposium: What you need to know

What is the Jackson Hole symposium?

The Jackson Hole Economic Symposium is an annual symposium, sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Jackson Hole, Wyo., since 1981. Every year, the symposium focuses on an important economic issue that faces world economies. InvestopediaJackson Hole Economic Symposium Definition

What is tapering in stock market?

Taper refers to a post-crisis asset purchase plan, where the Fed, at a predetermined stated pace, starts to slowly and gradually decrease how many assets it's buying (the process of purchasing securities for stimulative purposes is commonly called quantitative easing, or Q.E. for short). Bankrate.comTaper, explained: How the Fed plans to slow its bond purchases without wrecking the economy

Contracts on the S&P 500 ticked up. Earlier on Thursday, the index closed lower to end a five-session winning streak and pull back from an all-time high. Both the Dow and Nasdaq had also ended in the red.

More hawkish commentary from Fed policymakers ahead of the central bank’s key Jackson Hole symposium on Friday knocked stocks from their upward trajectory earlier this week, and compounded with concerns over the crisis in Afghanistan after explosions at the Kabul airport injured and killed U.S. service members.

Federal Reserve Bank of Kansas City President Esther George told Yahoo Finance’s Brian Cheung she would prefer to begin removing monetary policy accommodation and begin tapering asset purchases “sooner rather than later” as the economy continues to recover. George serves as an alternate voting member of the Federal Open Market Committee this year, and will be a voting member next year.

Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday is set to provide a fuller picture of the central bank leader’s thinking about the pace of the economic recovery in light of the latest Delta variant threat. Despite comments from more hawkish Fed officials lately, Powell’s remarks have to date been more dovish, suggesting he was more inclined to wait to see the further progress made in the economy before adjusting policy.

"We're not expecting a formal definitive announcement tomorrow, given the deterioration in the macro landscape since that July meeting, when the taper debate really unfolded," Candice Bangsund, Fiera Capital Global Asset Allocation vice president and portfolio manager, told Yahoo Finance.

"Obviously, the Delta variant [is] a major downside risk bringing into question the outlook for the economy, and clouding the outlook," Bangsund added. "So we think this will see Chair Powell tomorrow take somewhat of a cautious and patient approach – not providing that definitive guidance, but laying the groundwork for an eventual taper later this year once the Fed can get a little bit more of a sense as to the economic outlook, given these developments on the COVID front."

Even given Thursday’s pullback, the S&P 500 has managed to hold near all-time highs, boosted by a bevy of stronger-than-expected second-quarter earnings results, solid economic data, and still-accommodative policies from the Fed. The index has so far risen 19% for the year-to-date, and is on track for a nearly 2% gain in August.

“One has to be careful about focusing on issues over the short term over volatility and really getting swayed from making proper long-term decision,” Steven Wieting, Citi Global Wealth chief investment strategist, told Yahoo Finance. “Generally speaking, for example, a market that’s fallen 20% is going to generate higher returns than a market that’s rallied 20%. And this conundrum is always with us: We really feel better about markets that have performed well … but they’re really areas where you have to really reestimate what the future returns will look like.”

Here's where markets were trading Thursday evening:

S&P 500 futures (ES=F): +3.5 points (+0.08%) at 4,470.00

Dow futures (YM=F): +28 points (+0.08%) to 35,188.00

Nasdaq futures (NQ=F): +13.25 points (+0.09%) to 15,288.00

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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As COVID-19 cases rise in the Aloha state, Hawaii is urging travelers to reconsider visiting.

Stocks traded mixed Thursday but still hovered near record levels, as traders monitored the start of a key Federal Reserve event.

One of Silicon Valley’s most infamous entrepreneurs, Elizabeth Holmes, is scheduled to stand trial in San Jose, California starting September 7 to defend federal criminal accusations that she used her biotech startup, Theranos, to commit financial fraud. Holmes, 37, once proclaimed the youngest female self-made billionaire — and featured in Yahoo Finance’s new original documentary "Valley of Hype" — faces charges of wire fraud and conspiracy to commit wire fraud tied to the collapse of the blood-testing company.

This expert thinks September might bring a double-digit fall.

At least 13 U.S. troops and dozens of Afghan citizens were killed in two suicide bombings outside the Hamid Karzai International Airport in Kabul on Thursday, U.S. and Afghan officials said. What we know: The "complex attack" that struck in the sunset of the U.S.' longest war involved an explosion at the Abbey Gate entrance to the airport, a second explosion near the Baron Hotel, and gunfire from ISIS fighters, Gen. Kenneth McKenzie told reporters. President Biden blamed ISIS-K for the "vicious

(Bloomberg) -- China has issued its most comprehensive warning yet against the excessive-work culture that pervades the country’s largest corporations, using real and richly detailed court disputes to address a growing backlash against the punishing demands of the private sector. The Supreme People’s Court and Ministry of Human Resources and Social Security published a lengthy essay Friday about labor violations and unreasonable overtime, labeled ‘996’ because of the common practice of working 9

Dallas Fed President Robert Kaplan said he is advocating for the central bank to announce a slowdown of its asset purchases as early as September, with the actual taper happening in October.

The fitness equipment maker also introduced monthly financing options for its Bike+ and Tread products across all regions, as it looks to prevent a slowdown in its business after last year's home fitness boom. Peloton's original bike will now cost $1,495, compared with $1,895 earlier, and the company will also shift its product sales mix towards its treadmill. New York-based Peloton said it expects a return to profitability on an adjusted core earnings basis by the financial year 2023.

Tesla CEO Elon Musk says a Full Self Driving beta will be available to the wider U.S. public in about four weeks.

Traders thinking that volatility might drop while prices stabilize could look at an iron condor trade for Alibaba stock.

'I now have $1 million in my 401(k) and $1 million in company stock. I will have to sell stock to pay off the house.'

During a third banner year for the stock market, there are some surprises among the small number of stocks that are down for 2021.

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The market rally paused with Fed chief Powell on deck. Tesla is trading tight amid Elon Musk's FSD claims. Peloton, Workday were big movers late.

(Bloomberg) -- A flood of Treasury options set to expire Friday may dictate the bond market’s reaction to Federal Reserve Chair Jerome Powell’s long-awaited speech on the economic outlook.More than 2 million options in the September 10-year contract, which is 63% of total options open interest in Treasuries, expire by the end of trading Friday, raising the prospect for volatility in the wake of Powell’s remarks scheduled to start at 10 a.m. New York time.For months, Treasury option traders have

The Dow Jones Industrial Average rallied 50 points Thursday ahead of a Fed summit, as jobless claims missed estimates. Salesforce surged.

The New York City Council on Thursday approved legislation to license food-delivery apps including Grubhub, DoorDash Inc and Uber Eats and to permanently cap commissions they can charge restaurants. The companies say the price controls are unfair and vowed to fight them. The bills limit the amount that companies can charge restaurants to use their platforms to 15% of food orders for delivery services and 5% for advertising and other nondelivery services.

We continue our do-not-draft series with the wide receivers, choosing five we believe might not meet their ADP expectations in 2021.

(Bloomberg) -- Oil rose for a third session after a U.S. government report showed that crude and gasoline inventories fell despite fears that the delta variant’s spread would sap demand. Futures in New York advanced 1.2% on Wednesday to the highest in more than a week, buoyed by bullish stockpile data. Domestic crude supplies slid to the lowest since January 2020, according to data from the Energy Information Administration. Gasoline inventories dropped more than expected. Crude inventories decl

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You should watch this nerdfest if you care about your money

CNN 27 August, 2021 - 04:10am

Updated 10:20 AM ET, Wed August 25, 2021

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What to expect from the Fed's Jackson Hole meeting

Fox Business 27 August, 2021 - 04:10am

Despite his shortcomings, Jerome Powell should be reappointed Fed chairman

The Economist 27 August, 2021 - 04:10am

The fate of Jerome Powell, the incumbent chairman whose term expires in February, lies in President Joe Biden’s hands. It is unclear how history will view Mr Powell’s first term. Before the pandemic, his loose monetary policy helped unemployment reach historic lows without provoking inflation. When the economy locked down in the spring of 2020, the Fed prevented a collapse of financial markets with enormous and swift interventions, some of which, such as the implicit underwriting of the corporate-bond market, were unprecedented. In August 2020 the central bank fine-tuned its 2% inflation target, which it had hitherto mostly undershot, by making it apply on average over the economic cycle, meaning that the Fed would have to compensate for its past misses.

Recently, though, Mr Powell’s hand has looked less steady. By the measure the Fed targets, inflation has surged to 4% on a year earlier, or 6.4% if you annualise quarter-to-quarter price increases. The central bank’s failure to foresee rising prices has made its promises that inflation will subside less reassuring. The Fed could yet be forced into an abrupt reversal of stimulus.

In the short term, the danger is that high inflation proves stubbornly persistent. With Mr Powell in charge, that would look like an honest mistake, one that his record suggests he would try to correct quickly. In 2018 the Fed raised rates as the economy heated up; in June it signalled that it would respond to higher inflation with tighter monetary policy, a plan markets took to be credible. However, with a Biden appointee at the helm, chosen primarily for his or her fondness for stimulus, the Fed might look insufficiently independent and thus have to raise rates more—and thus slow the economy more—to convince investors that it was determined to contain inflation.

Mr Powell got his job four years ago because Donald Trump threw out a precedent, intact since the 1970s, that presidents should reappoint Fed bosses chosen by their predecessors, even those from opposing parties. Mr Biden would do well to reassert that principle, and thereby send the message that the executive branch respects the Fed’s independence.

This article appeared in the Leaders section of the print edition under the headline "The Powell punt"

U.S. Recession, Recovery Cycle Is Unclear, Says MetLife's Matus

Bloomberg Markets and Finance 27 August, 2021 - 04:10am

Jim Cramer Says It’s a Mistake to Focus on Jackson Hole

TheStreet 26 August, 2021 - 09:36am

“It’s a mistake to focus on Jackson Hole,” Cramer told Action Alerts PLUS senior analyst Jeff Marks.

Where should investors be placing their intention instead? “Europe is the driver here,” Cramer said.

Cramer added that as large portions of the world, namely European countries, get their populations vaccinated, “business explodes.”

“When people get vaccinated, you won’t care about [Fed] tapering,” Cramer said. 

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