Credit Conditions

Global Stocks Hit New Record High, Dollar Mixed After Dovish Fed

In a trend observed every day this week, S&P futures are slightly in the red ahead of a post-open ramp with the VIX rising to 9.91, as Asian shares climb, European stocks are little changed. WTI crude pares recent gains, slipping below $51 after API showed an unexpected crude build.

Key Events In The Coming Week: CPI, Retail Sales And FOMC Minutes

The key economic releases this week are the CPI and retail sales reports on Friday. Additionally, the minutes from the September FOMC meeting will be released on Wednesday. There are several speaking engagements by Fed officials this week, including a speech by Chair Yellen on Sunday.

Two Key Indicators Show The S&P 500 Becoming The New "Cash"

"...the downward slope points to a meager long-term return. In fact, if we use only the scatter plots above to make our estimate, while also accounting for the Fed’s predicted interest rate path, the S&P 500 appears to offer a similar return to cash."

Wall Street Journal Lashes Out At "Our Political Central Bankers"

Janet Yellen didn’t run for President, but you wouldn’t know it from her policy démarche Friday at the Federal Reserve’s annual Jackson Hole retreat. The Fed Chair unleashed a defense of post-crisis financial regulation that shows how political the world’s central bankers have become.

What Financial Conditions Tell Us (Two Charts & A Prediction)

"The poobahs at the Fed would like financial conditions to tighten, but the past year’s loosening in conditions - even as the Fed nudged policy rates higher - seems a happy coincidence... Eventually, policymakers should get their wish. Financial conditions, like many things in life, don’t remain winsome, warm and welcoming forever..."

Small Cap Rout Is Flashing Red Flag For US Economy

The post-election small cap bounce in US stocks has now been completely erased as it seems tax-reforms have now been entirely priced-out of markets. However, as BofAML notes, the demise of small cap stocks relative to the broad market augurs badly for forward-looking economic growth...