Fed's Unsurprising Hike Gives the Machines Something to Act On

 | Jun 13, 2018 | 2:26 PM EDT
  • Comment
  • Print Print
  • Print

The Federal Open Market Committee raised interest rates a quarter point as expected. The accompanying policy statement is signaling two more rate hikes this year, which isn't unexpected but is more hawkish than some have hoped. Expectations for rates at the end of 2019 are now up to 3.1% from the March forecast of 2.9%.

While the Fed notes that labor markets, economic activity and household spending are solid, there is still no indication of a surge in longer-term inflation.

The algorithms sold the news immediately, but it was quickly bought before the indices rolled over again.

There is nothing very surprising in this news but conditions are good for a "sell the news" reaction. Typically that hasn't lasted for long but the sell programs seem to be operating for now.

Don't forget that there is a press conference coming up and that can change the tone of things very quickly. Right now the sellers have some traction and are pushing, although the news isn't anything that justifies a major reversal.

Columnist Conversations

Although we did see an initial rally off my original CXO setup, there has been no follow through.  Some w...
on Apr 30 right here in CC, I mentioned buying the Spotify Jul 160 call. It's time to move. We have a nice ...
Some say the Diamonds are a girl's best friend. It might be a trader's best friend as our bounce zone is gett...
Today we'll be discussing a couple of important technical tools, the RSI and money flow.  Join me after t...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.