"All of the animals except man know that the principal business of life is to enjoy it." - Samual Butler
Morning News of Note: (I am having trouble getting my normal news feed, so today's news will look different)
- HANS reported very strong earnings this am ($1.26 vs. $0.90 est.); sales rose 85%, and gross margins rose to 52.6%. The stock also split 2-for-1 today.
- US productivity was up a respectable +2.2% last quarter (vs. +2.0% consensus)
- The FOMC meets today, and is expected to hike rates for a 10th consecutive time to 3.50%. The market seems to be pricing in a 4.0% fed funds rate by year-end, as the Fed keeps its foot on the brakes due to an accelerating economy.
- The NAR is tempering its forecast, saying that they expect the housing market to cool from current levles. They even went as far as to say that now is a better time to sell, while buyers should hold off.
Market Comments: The market opens higher this am, but I wouldn't make too much of the action. The Fed will raise rates another 25 bps today, and then we will see how the market reacts. While it seems silly to have to wait, considering everyone in the world knows what the Fed is going to do, the important action will be how the market closes today.
After a strong run, energy stocks are pulling back in early trade, despite oil nearing $64. Homebuilders and retailers are bouncing. I think it will be interesting to watch the yield plays (REITs, Utes, etc), considering how hard they have been sold over the last few days.