Daily Delphi

Post: Thursday - Fed looking for 'tiny bubbles.' | Daily Delphi

BlogsPit Talk › Thursday - Fed looking for 'tiny bubbles.' January 9, 2014, 6:50 am

7:30 AM CT
Initial Claims for 01/04
Prior 339K Forecast 340K
Continuing Claims for 12/28
Prior 2833K Forecast 2875K
9:30 AM CT
Natural Gas Inventories for 01/04
Prior -97bcf Forecast -151bcf

After yesterday's mixed bag of trade don't be surprised to see another just like it today. All three major averages closed near flat on good volumes. The initial claims report is always volatile and coming in front of Friday's non-farm payrolls diminishes its importance that much more. Traders will be waiting to see the numbers on Friday before committing one way or the other. It will be interesting to see if the markets start playing the good is bad game again as everyone tries to decide just what Big Daddy considers a "bubble."


The FOMC minutes showed that Big Daddy is looking for a good year in 2014. The minutes seem to be in line with expectations that the Fed will continue reduce the bond buying program by another $10B per month at the January 28-29 meeting. The one point that the Fed Governors did seem to dwell on was the possibility that all their cheap money may be creating "asset bubbles." (Ya think?) That kind of wording may keep the markets on the defensive as equities try to extend the bull run of 2013. The March S&P contract ended up only +1.80 at 1832.50. The Nasdaq added +0.3% and the Dow shed -0.4%.

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