Dow went up 59, advancers barely ahead of decliners 2-1 & NAZ lost 1. The MLP index rose 3+ to almost 531 (a new record) & the REIT index added 1 to the 312s. Junk bond funds lost ground after recent gains & Treasuries also pulled back. Oil was higher & gold fell to a 2-week low after
minutes of the Federal Reserve Jul meeting raised the
possibility that interest-rate increases may happen sooner than
anticipated.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.762638867175629)
Photo: Bloomberg
Federal Reserve officials raised the possibility that they might begin removing aggressive stimulus sooner than anticipated, as they neared agreement on an exit strategy, according to minutes of their Jul meeting. “Many participants noted that if convergence toward the committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated,” according to the minutes. Janet Yellen has committed monetary policy to stronger labor markets, which she measures with an array of indicators, so long as inflation remains in check. The minutes said “many participants” still see “a larger gap between current labor market conditions & those consistent with their assessments of normal levels of labor utilization.” In their post-meeting statement last month, Fed officials downplayed recent declines in the unemployment rate, highlighting “significant underutilization of labor resources.” Still, the minutes showed policy makers anticipating further labor-market strength. “Many members noted, however, that the characterization of labor market underutilization might have to change before long, particularly if progress in the labor market continued to be faster than anticipated,” the minutes said. Fed officials, discussing their strategy for eventual “normalization” of policy, expressed a desire to keep the federal funds rate as the key policy rate, targeting a range of 25 basis points “at the time of liftoff and for some time thereafter.” They would use the rate of interest on excess reserves as the “primary tool used to move the federal funds rate into its target range” while “temporary use” of its reverse repurchase facility, which it uses to borrow cash overnight from money-market mutual funds & others, would help set the floor. However, they “generally agreed” that the reverse repurchase facility should be “phased out when it is no longer needed for that purpose,” & that the balance sheet “should be reduced to the smallest level consistent with efficient implementation of monetary policy and should consist primarily of Treasury securities in order to minimize the effect” of the portfolio holdings on credit allocation across different sectors of the economy.
Fed Officials Said Job Gains May Bring Faster Rate Increase
Bank of America's record settlement with the Justice Dept over the sale of mortgage bonds in the run-up to the 2008 financial crisis will be announced as soon as tomorrow, according to 2 leakers. The accord will total $16-$17B. Another leaker said the number will be about $16.6B. The agreement would resolve civil investigations by federal & state prosecutors in California, New York & New Jersey, as well as a lawsuit filed in North Carolina. No comment from BAC. The stock was up pennies. If you would like to learn more about BAC, click on this link:
club.ino.com/trend/analysis/stock/BAC?a_aid=CD3289&a_bid=6ae5b6f7
BofA MBS Accord With U.S. Said Coming as Soon as Tomorrow
AT&T, a Dow stock & Dividend Aristocrat, is out to beat Google (GOOG) in a race to deliver some of the fastest Internet speeds in the country to residential users in the US technology epicenter, Silicon Valley. AT&T got the green light from Cupertino, California, to begin work on its GigaPower fiber-optic-based home internet service, the hometown of Apple (AAPL) & near headquarters of GOOG, will be the first city in California to receive the 1-gigabit-a-second offering & is one of 4 in the Silicon Valley where the company is pursuing plans for the service. Introduction of the service is several months away. While GOOG started selling its own gigabit-speed fiber connections in Kansas City 2 years ago & has since added Provo, Utah, & Austin, Texas, it doesn’t have a similar offering in California. With a connection of a gigabit per second, a user can download a digital movie in less than 2 minutes. AT&T is eager to show it is bringing broadband competition to GOOG's home turf, especially while its proposed $48.5B purchase of satellite carrier DirecTV (DTV) is under review by regulators to determine how the deal will affect competition. “AT&T’s decision to launch and expand the GigaPower network goes well beyond our competitors’ fiber plans,” Eric Boyer, senior VP of AT&T’s U-verse Internet service, wrote in an e-mail. The company has also been approved to start planning service in 10 other cities. AT&T stock was up pennies. If you would like to learn more about AT&T, click on this link:
club.ino.com/trend/analysis/stock/T?a_aid=CD3289&a_bid=6ae5b6f7
AT&T Plots Zippiest Internet Speed in Google’s Backyard
The Fed minutes didn't provide much new information, as usual. Higher interest rates are coming but the timing is unclear because of the changing events in the world. Dow had a good day, but there was little support behind that move & market breadth was not strong. This is part of the last 2 weeks in Aug which typically has some of he slowest trading days. But fighting is intensifying in Ukraine & Gaza while ISIL wants to impress the world with its cruelty. Hamas has told airlines to stop flying to Israel strarting tomorrow to avoid rocket fire (after firing many into Israel today). Anything is possible in the stock market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLU14.NYM | ....Crude Oil Sep 14 | ....96.40 |  ...1.92 | (2.0%) |
Federal Reserve officials raised the possibility that they might begin removing aggressive stimulus sooner than anticipated, as they neared agreement on an exit strategy, according to minutes of their Jul meeting. “Many participants noted that if convergence toward the committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated,” according to the minutes. Janet Yellen has committed monetary policy to stronger labor markets, which she measures with an array of indicators, so long as inflation remains in check. The minutes said “many participants” still see “a larger gap between current labor market conditions & those consistent with their assessments of normal levels of labor utilization.” In their post-meeting statement last month, Fed officials downplayed recent declines in the unemployment rate, highlighting “significant underutilization of labor resources.” Still, the minutes showed policy makers anticipating further labor-market strength. “Many members noted, however, that the characterization of labor market underutilization might have to change before long, particularly if progress in the labor market continued to be faster than anticipated,” the minutes said. Fed officials, discussing their strategy for eventual “normalization” of policy, expressed a desire to keep the federal funds rate as the key policy rate, targeting a range of 25 basis points “at the time of liftoff and for some time thereafter.” They would use the rate of interest on excess reserves as the “primary tool used to move the federal funds rate into its target range” while “temporary use” of its reverse repurchase facility, which it uses to borrow cash overnight from money-market mutual funds & others, would help set the floor. However, they “generally agreed” that the reverse repurchase facility should be “phased out when it is no longer needed for that purpose,” & that the balance sheet “should be reduced to the smallest level consistent with efficient implementation of monetary policy and should consist primarily of Treasury securities in order to minimize the effect” of the portfolio holdings on credit allocation across different sectors of the economy.
Fed Officials Said Job Gains May Bring Faster Rate Increase
Bank of America's record settlement with the Justice Dept over the sale of mortgage bonds in the run-up to the 2008 financial crisis will be announced as soon as tomorrow, according to 2 leakers. The accord will total $16-$17B. Another leaker said the number will be about $16.6B. The agreement would resolve civil investigations by federal & state prosecutors in California, New York & New Jersey, as well as a lawsuit filed in North Carolina. No comment from BAC. The stock was up pennies. If you would like to learn more about BAC, click on this link:
club.ino.com/trend/analysis/stock/BAC?a_aid=CD3289&a_bid=6ae5b6f7
BofA MBS Accord With U.S. Said Coming as Soon as Tomorrow
Bank of America (BOA)
AT&T, a Dow stock & Dividend Aristocrat, is out to beat Google (GOOG) in a race to deliver some of the fastest Internet speeds in the country to residential users in the US technology epicenter, Silicon Valley. AT&T got the green light from Cupertino, California, to begin work on its GigaPower fiber-optic-based home internet service, the hometown of Apple (AAPL) & near headquarters of GOOG, will be the first city in California to receive the 1-gigabit-a-second offering & is one of 4 in the Silicon Valley where the company is pursuing plans for the service. Introduction of the service is several months away. While GOOG started selling its own gigabit-speed fiber connections in Kansas City 2 years ago & has since added Provo, Utah, & Austin, Texas, it doesn’t have a similar offering in California. With a connection of a gigabit per second, a user can download a digital movie in less than 2 minutes. AT&T is eager to show it is bringing broadband competition to GOOG's home turf, especially while its proposed $48.5B purchase of satellite carrier DirecTV (DTV) is under review by regulators to determine how the deal will affect competition. “AT&T’s decision to launch and expand the GigaPower network goes well beyond our competitors’ fiber plans,” Eric Boyer, senior VP of AT&T’s U-verse Internet service, wrote in an e-mail. The company has also been approved to start planning service in 10 other cities. AT&T stock was up pennies. If you would like to learn more about AT&T, click on this link:
club.ino.com/trend/analysis/stock/T?a_aid=CD3289&a_bid=6ae5b6f7
AT&T Plots Zippiest Internet Speed in Google’s Backyard
AT&T (T)
The Fed minutes didn't provide much new information, as usual. Higher interest rates are coming but the timing is unclear because of the changing events in the world. Dow had a good day, but there was little support behind that move & market breadth was not strong. This is part of the last 2 weeks in Aug which typically has some of he slowest trading days. But fighting is intensifying in Ukraine & Gaza while ISIL wants to impress the world with its cruelty. Hamas has told airlines to stop flying to Israel strarting tomorrow to avoid rocket fire (after firing many into Israel today). Anything is possible in the stock market.
Dow Jones Industrials
I’m a huge fan of INO & from what I have seen so far, their service Marketclub! This isn’t a stripped down version, everything in MarketClub is available to you. I don’t want to give everything away, but you’ll have unlimited access to my favorite 3 tools: Trade Triangles, Smart Scan & Alerts! The best part is that the MarketClub customer support team will be providing UNLIMITED support! You can call or email for an instant response to any question, comment or concern.
Here’s that link:
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I’d recommend you jump on this now.
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