Stock Investors Looking Forward For Wall Street Week Ahead

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Stock Investors Looking Forward For Wall Street Week Ahead

Posted on Feb 15 2014 - 12:46pm by Moseti Wilfred M

 

 

 

The Fed has predicted that the United States stock investors will go to zero next week. Technical analysts confirmed the zero stock index while the S&P 500 is about to go its record high.

The minutes of the Fed’s most recent meeting will be published on Wednesday showing its policy setting. This will be a short week as on Monday the United States stock market will close down as it will be the Presidents ’ Day.

The minutes of the meeting are to harbor the interest of the investors as well focus on the discussion surrounding the Federal Reserve’s forward guidance. The central bank holds that the United States unemployment rate has to hit 6.5 percent. The chance for the policy makers to consider an increase in interest rate is stale.

The Fed is not expected to increase the interest rates any time soon maybe towards the end of the year. In the week Wall Street will focus on how the Fed will maneuver over how to adjust the guidance. The guidance is supporting high equity prices.

A market strategist Quincy Krosby said what they want to see is a discussion that will lead us to move away from the thresholds as they are boxing them in. she further says that the good news for the market is to see that the Fed is flexible regarding to data that is expected to continue softening, and the Fed has to ensure that it stops tapering.

The Federal Reserve chair Yellen in her fist testimony to the House of Representatives cold the temperatures when she said that she is concerned with the increasing number of unemployment. Her sentiments may be affecting economic activity in the US and elsewhere thus giving the traders what to smile about.

In December the Fed announced that it will start reducing its purchase of assets by $10 billion as it is trying to support the economy. Ending of the stimulus shifted market focus to fundamentals and economic data.

Next week we will be experiencing the traditionally market moving numbers where on Wednesday we will start with the US housing, on Friday there will be the home sales and the consumer and producer price inflation on Thursday and Wednesday respectively.

In case the pattern goes on, the weakness in the numbers will be disregarded and the cold weather will be blamed but the market will move on.