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Investors will be looking for Powell's take on the labor market in a speech at the Economic Club of Washington due later in the day, after a sharp rise in jobs growth last week punctured hopes for a tempered Fed. "We expect Chair Powell to emphasize stubbornness in underlying inflation pressures while highlighting the labor market’s strength and capacity to withstand higher rates." U.S. interest-rate futures show that markets are expecting the Fed funds rate to peak just above 5.1% by June, compared with expectations of a peak below 5% prior to Friday's jobs report. "The Fed still has some progress to make, there are signs of positivity in terms of the disinflationary pressures that are in the pipeline, but there is still a labor market problem." Sterling was last 0.4% down against the dollar at $1.1982, after tumbling to a one-month low of $1.1974 in the previous session.

☆ Traders don't want to believe the Fed, so get used to a lot of choppiness
▼ + stars: | 2023-01-10 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Then Fed officials get on the tape say they're going to keep raising rates and keep them high until hell freezes over. Atlanta Fed President Raphael Bostic on Monday said the central bank should raise interest rates above 5% and stay there for "a long time." Inflation data continues to show signs of cooling, but it's still high, and the Fed doesn't want to declare victory so they keep jawboning the markets down. The source of tension is that the trading community doesn't want to believe the Fed, and many are arguing the Fed is using stale data. "Wall Street does not believe the story being spun by the Fed," Harry Katica from Saut Strategy told his clients.

☆ Wall Street ends lower after latest Fed rate hike
▼ + stars: | 2022-12-14 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

Economic data on Tuesday, which showed cooling consumer inflation for November, had heightened expectations a move by the Fed to halt rate hikes might be on the horizon next year. Nearly all of the 11 major S&P sectors ended the session in negative territory, with healthcare (.SPXHC) the sole advancer. Despite the Fed statement, U.S. Treasury yields were slightly lower after initially jumping in the wake of the announcement. Declining issues outnumbered advancing ones on the NYSE by a 1.39-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored decliners. The S&P 500 posted eight new 52-week highs and two new lows; the Nasdaq Composite recorded 82 new highs and 223 new lows.

☆ Premarket stocks: Powell revives hopes of a Fed pivot. That's a bad thing
▼ + stars: | 2022-12-01 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Federal Reserve Chair Jerome Powell made investors very happy on Wednesday. Powell’s admission that “the path ahead for inflation remains highly uncertain” means that rate hikes could be here for a while. This isn’t the first time investors rushed into markets on the belief that there would be a Fed pivot. Powell said on Wednesday that there is still a chance the economy avoids recession but the odds are slim. But the labor market still remains historically tight despite the Federal Reserve’s efforts to cool demand and bring down inflation.

☆ Premarket stocks: Fed officials crushed investors' hopes this week
▼ + stars: | 2022-11-18 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But messaging from Fed officials this week has brought Wall Street back down to earth. Tech layoffs don’t mean impending recessionA series of high-profile layoffs have rattled Big Tech this month. The series of high-profile layoff announcements prompted fears that the labor market was weakening and that a recession could be around the corner. Those fears aren’t unwarranted: The Federal Reserve is actively working to slow economic growth and tighten financial conditions to rebalance the white-hot labor market. “The main problem in the labor market is still that labor demand is too strong, not too weak,” they concluded.

The net effect was to catapult next year's implied Fed terminal rate well above 5%. Fed vs BoE Terminal RatesNIESR chart on UK variable mortgagesBANK "IN A HOLE"Although the BoE insisted further hikes from 3% would likely be needed, two of the nine person policymaking council voted for a smaller rate rise this week. State Street's EMEA macro strategist Tim Graf also thinks a terminal rate closer to 4% is now "the more likely end state for policy rates." The BoE needs to be super careful about the pound because another withering lurch will simply aggravate import and energy price inflation. by Mike Dolan, Twitter: @reutersMikeD; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ As Xi opens congress, China's state hands keep markets steady
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +4 min

SHANGHAI, Oct 17 (Reuters) - As Chinese President Xi Jinping opened the landmark Communist Party Congress, the country's vast financial bureaucracy has been busily tamping down ripples of turmoil across its currency and stock markets. Scores of companies have announced share buybacks or executive share purchase plans since Friday, when regulators unveiled plans to ease share buyback rules. Investors and analysts believe government pressure on China's largely state-controlled fund sector may have played a role in the stock market rebound. Xia Chun, chief economist at wealth manager Yintech Investment Holdings, said this follows a pattern of China stocks typically rising before a party congress and then likely falling afterwards. On Monday, several state-controlled asset managers including E Fund Management Co, China Southern Asset Management Co and Zhongtai Securities Asset Management said they were investing their own money to buy products, echoing an identical refrain of confidence in China's capital markets.

☆ Analysis: G7 fails to reach intervention deal to ease pain of soaring dollar
▼ + stars: | 2022-10-16 | by ( Leika Kihara | ) www.reuters.com time to read: +7 min

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. With a strong push from Japan, finance leaders of the Group of Seven advanced economies included a phrase in a statement on Wednesday saying they will closely monitor "recent volatility" in markets. "Many countries saw the need for vigilance to the spill-over effect of global monetary tightening, and mentioned currency moves in that context. "I've said on many occasions that I think a market-determined value for the dollar is in America's interest. "It's impossible to reverse the yen's downtrend with solo intervention," said Daisaku Ueno, chief forex strategist at Mitsubishi UFJ Morgan Stanley Securities.

☆ Explainer: Five ways the Fed could calm frazzled markets
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +5 min

Here is a look at how the Fed might forestall market dysfunction should it threaten to emerge, listed roughly from most to least likely to be deployed. TALKING THE TALKIn recent days Fed policymakers have acknowledged some liquidity strains in U.S. financial markets - the Treasury market in particular - and the risk that raising interest rates to combat inflation could exacerbate vulnerabilities both domestically and abroad. Still, Fed policymakers would likely be cautious about taking their jawboning up a notch for fear of delivering perhaps too much calm, and undoing the very tightening they need to bring inflation under control. If taken too far, as happened the last time the Fed pursued so-called quantitative tightening in 2019, it can cause market ructions. Slowing that effort could ease strains, but it could also send a confusing signal to markets that may conclude the Fed is backing away from the inflation fight.

☆ What Cramer is watching Thursday — September to forget and dueling Apple notes
▼ + stars: | 2022-09-29 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Credit Suisse lowers price target on Club holding Constellation Brands (STZ) to $277 per share from $292, without any real reason. Citi cautious on Alibaba (BABA), cuts price target $146 per share from $159. Credit Suisse cuts Paychex (PAYX) price target to $138 per share 150, even though they raised the estimates. Starts with a buy and a $65 per share price target. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

"We are deeply concerned about recent rapid and one-sided market moves driven in part by speculative trading," Suzuki told the news conference. The remarks came after the government's decision on Thursday to intervene in the currency market to stem yen weakness by selling dollars and buying yen for the first time since 1998. read moreKuroda said the government's intervention was an appropriate move to deal with "rapid, one-sided" yen moves. "Monetary policy and currency policy have different goals and effects," he said. "It was a meaningful move that showed Japan's determination it won't leave unattended sharp market volatility," he said.

☆ This market is not the dot-com crash or the financial crisis. Here's how to play it
▼ + stars: | 2022-09-25 | by ( Jim Cramer | ) www.cnbc.com time to read: +21 min

The S & P 500 never really got out of control back then — and, relative to bonds, it didn't either. The Fed chairman, correctly, feared the economy was going to crash, and he would have been right. I think that's certainly how people act. I think that most participants have decided there's no hope and they are using an analogue that's 2000-2001 (dot-com bubble bursting) or even 2007 (before the financial crisis and the Great Recession). Autos have been hurt by supply chain but I think that's coming to an end.

☆ What Cramer is watching Friday — 2-year yield unstoppable as stocks to retest mid-June lows
▼ + stars: | 2022-09-23 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

Our trusted S & P Oscillator is at a minus 7. Goldman cut its year-end S & P 500 target to 3,600 from 4,300. Darden Restaurants (DRI), parent of Olive Garden and LongHorn Steakhouse, had its price target lowered $2 to $129 by Deutsche Bank. Morgan Stanley is concerned that Advanced Micro Devices (AMD) will miss numbers, so it cut its price target to $95 per share from $102. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ BOJ seen sticking to ultra-low rates, defy global rate hike rush
▼ + stars: | 2022-09-20 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

It's becoming hard for the BOJ to keep saying price rises will remain temporary," said Mari Iwashita, chief market economist at Daiwa Securities. At a two-day policy meeting ending on Thursday, the BOJ is set to maintain its short-term rate target at -0.1% and that for 10-year government bond yields around 0%. Market players expect the U.S. central bank to raise rates by at least 75 basis points. The country's fragile recovery has forced the BOJ to remain an outlier among a global wave of central banks tightening monetary policy to combat surging inflation. At the policy meeting, the BOJ is expected to end as scheduled a pandemic-relief funding scheme this month and discuss adjustments to a policy guidance that flags the COVID-19 pandemic as the top economic risk.

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