What the Fed Could Say – Analyst Blog
Source: http://www.zacks.com/stock/news/21403/What+the+Fed+Could+Say+-+Analyst+BlogPosted on Wednesday, June 24th, 2009 | In Market Commentary, Stocks to Watch
The Fed will release its statement around 1:15 p.m. this afternoon. (Could be a few minutes earlier.)
As I tweeted earlier, I expect an acknowledgement that the economy has improved as well as an update the Fed’s debt purchase programs. There will be no rate hike.
I’m specifically looking for a change to the phrase “the pace of contraction appears to be somewhat slower.” We are seeing multiple signs that the pace of contraction is clearly slowing. Yesterday’s existing home sales data was just the latest of “less bad” economic indicators. This is why the OECD raised its forecast for 2009 and 2010 this morning.
It’s also worth noting that the guidance from Oracle (ORCL) was better than anticipated and the numbers from Kroger (KR) appear to be pretty good.
I would be cautious about trading stocks before the statement is released because it’s hard to predict how the market will react afterwards.
This said, if the statement contains the changes I’m predicting, I would use the opportunity to look at companies that could benefit from a rebound. Such stocks include National Semiconductor (NSM), IBM (IBM) and Weatherford (WFT).
Read the full analyst report on “ORCL”
Read the full analyst report on “KR”
Read the full analyst report on “NSM”
Read the full analyst report on “IBM”
Read the full analyst report on “WFT”
Zacks Investment Research
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 About Charles Rotblut (http://www.zacks.com/)
Charles Rotblut is the Vice President of Web Content for Zacks Investment Research and the Senior Market Analyst for Zacks.com. He oversees the editorial staff, manages the market-beating Focus List, Timely Buys and Top 10 portfolios, and plays an instrumental role in the development of new products. In addition, Mr. Rotblut is spearheading the development of investment education products, including the recently released Zacks Method for Trading. Mr. Rotblut is a Chartered Financial Analyst (CFA). He has analyzed publicly traded and privately held companies. His experience includes working for INVESTools (an investment education company), Curian Capital (a money management firm) and McClure, Schumacher & Associates (a business valuation firm). Mr. Rotblut holds a journalism degree from the University of Kansas. |
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