Market Recap 10/08/15:
U.S. stocks rose on Thursday as the latest commentary out of the Federal Reserve gave further credence to the idea that the Fed would hold off on raising interest rates until 2016. In minutes from the Fed’s September meeting, the central bank said that while it considered the U.S. economy strong enough to withstand higher rates, it wanted to see whether slowing global growth would be enough to change the domestic equation. The comments were win-win for investors, who have struggled to weigh the benefit of low rates for longer against the suggestion that the economy remained weak. That the Fed believes the U.S. to be strong while still not raising rates was enough to push major indexes to multi-week highs. Energy shares were especially strong, rising alongside oil prices.
U.S. stock index futures were flat on Friday, though the S&P 500 was on track for its biggest weekly gain since December. Notable gains from current levels may be difficult to come by, however, if companies fail to impress in the coming earnings season. Alcoa (AA) fell after the aluminum company reported a larger-than-expected drop in quarterly sales late Thursday. As the former Dow component is unofficially seen as setting the tone for the earnings season, disappointment over the results could spread throughout the market. Gap (GPS) is also lower in the wake of disappointing monthly sales data. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, which airs Sundays at 11 on WOR710. Gary’s guest this week is economist Dr. Thomas Sowell. Visit our website www.ggfs.com for more details.