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MarketWatch.com – MarketWatch Breaking News BulletinsMarketWatch.com – MarketWatch Breaking News BulletinsU.S. stocks end higher Friday, but notch second straight week of declinesFed's Yellen sees possible benefits from running economy with tight labor marketConsumer sentiment sinks to 13-month low as election uncertainty takes a toll

https://feeds.marketwatch.com/marketwatch/bulletins MarketWatch, a leading publisher of business and financial news, offers users up-to-the minute news, investment tools, and subscription products. 60 https://feeds.marketwatch.com/marketwatch/bulletins https://www.marketwatch.com/rss/marketwatch.gif https://feeds.marketwatch.com/~r/marketwatch/bulletins/~3/DvdJhYWbnuo/bulletinredir.asp U.S. stocks on Friday finished barely higher as an early rise, buoyed by gains in bank shares, faded into the close. The three main equity benchmarks finished the week with a second-straight weekly loss. On the day, the Dow Jones Industrial Average <a class=”qt-chip trackable” data-fancyid=”IndexDJIA” href=”https://www.marketwatch.com/investing/index/djia” data-track-mod=”MW_story_quote”>DJIA, +0.22%</a> ended up 0.2% at 18,138, closing well of its highs of the session, the S&P 500 index <a class=”qt-chip trackable” data-fancyid=”IndexSPX” href=”https://www.marketwatch.com/investing/index/spx” data-track-mod=”MW_story_quote”>SPX, +0.02%</a> wrapped up little-changed at 2,132 and the Nasdaq Composite Index <a class=”qt-chip trackable” data-fancyid=”XNASIndexCOMP” href=”https://www.marketwatch.com/investing/index/comp” data-track-mod=”MW_story_quote”>COMP, +0.02%</a> was flat at 5,214. Better-than-expected quarterly results from the likes of J.P. Morgan Chase & Co. <a class=”qt-chip trackable” data-fancyid=”XNYSStockJPM” href=”https://www.marketwatch.com/investing/stock/jpm” data-track-mod=”MW_story_quote”>JPM, -0.32%</a> delivered an initial jolt to the banking sector and the broader market, with strength in J.P. Morgan’s trading unit hinting at a possibly solid quarter for trading powerhouse Goldman Sachs Group <a class=”qt-chip trackable” data-fancyid=”XNYSStockGS” href=”https://www.marketwatch.com/investing/stock/gs” data-track-mod=”MW_story_quote”>GS, +1.85%</a> Goldman’s rise led gains for the Dow industrials. Goldman is set to report its results Oct. 18. Although financial institutions set an upbeat tone, Wells Fargo & Co.’s <a class=”qt-chip trackable” data-fancyid=”XNYSStockWFC” href=”https://www.marketwatch.com/investing/stock/wfc” data-track-mod=”MW_story_quote”>WFC, -0.09%</a> fake-account scandal overshadowed its solid results. Comments from Federal Reserve Chairwoman Janet Yellen midday Friday, where she suggested the fed could overshoot its 2% inflation target, and a strengthening dollar <a class=”qt-chip trackable” data-fancyid=”IFUSIndexDXY” href=”https://www.marketwatch.com/investing/index/dxy” data-track-mod=”MW_story_quote”>DXY, +0.55%</a> up 0.6%, helped to limit gains for U.S. equities. For the week, the Dow closed off 0.6%, the S&P 500 ended with a weekly decline of 1% and the Nasdaq Composite closed off 1.5%. Meanwhile, the buck ended up 1.5% on the week. A rising dollar can be viewed as a headwind for multinational companies, which rely on selling goods abroad. <a href=”https://blockads.fivefilters.org”>Let’s block ads!</a> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a> Fri, 14 Oct 2016 20:02:04 +0000 article https://www.marketwatch.com/story/wall-street-early-rally-losses-steam-as-stocks-log-weekly-decline-2016-10-14 Wall Street’s early rally losses steam as stocks log weekly decline https://mw3.wsj.net/mw5/content/logos/mw_logo_social.png en-US text/html https://www.marketwatch.com/story/wall-street-early-rally-losses-steam-as-stocks-log-weekly-decline-2016-10-14?siteid=bulletrss https://feeds.marketwatch.com/~r/marketwatch/bulletins/~3/Kb_5IGyubyI/bulletinredir.asp <div class=”article-image-wrap shareable” data-share-text=”Fed’s Yellen sees benefits in letting inflation exceed central bank’s 2% target” data-share-modprefix=”mw_image_”><img class=”article-image MG” src=”https://ei.marketwatch.com//Multimedia/2016/09/28/Photos/MG/MW-EW746_yellen_20160928092944_MG.jpg?uuid=9e359d06-857f-11e6-9972-00137241c023″/><cite>Reuters</cite> </div> Federal Reserve Chairwoman Janet Yellen spoke in favor of a ”high-pressure” economy. BOSTON (MarketWatch)—It may be wise to run a “high pressure” economy with a tight labor market to reverse some of the negative effects of the Great Recession, Fed Chairwoman Janet Yellen said Friday. <a href=”https://www.federalreserve.gov/newsevents/speech/yellen20161014a.htm” target=”_new” class=”icon”>In a speech at a Boston Fed conference</a> on the “not-so-great recovery,” Yellen said a disappointing economy may force economists to think about the economy in new ways. Before the crisis, most economists thought the amount of output of goods and services was primarily driven by supply, Yellen said. “This conclusion deserves to be reconsidered in light of the failures of the level of economic activity to return to its prerecession trend in most advanced economies.” Her remarks suggest that Yellen agrees, at least in some part, with former Treasury Secretary Larry Summers, who said that secular stagnation, or a lack of demand, is pushing down global growth. “For the Fed chair to openly discuss the merits of a “high-pressure economy” is a sign of how far this idea has progressed into the policy mainstream,” said Krishna Guha, an analyst for Evercore ISI. Thomas Simons, an economist at Jefferies, said Yellen’s comments “show she is willing to let inflation run a little bit higher than [2%] target for a time and that the Fed is going to err on the side of being a little too slow in [raising rates] rather than too fast.” If one assumes that demand is holding back outlook, “the natural next question is to ask whether it might be possible to reverse these adverse supply-side effects by temporarily running a ‘high-pressure economy,’ with robust aggregate demand and a tight labor market,” Yellen said. Quincy Krosby, market strategist at Prudential Financial, said Yellen’s speech could be seen as adding another reason for holding off raising rates in December. For now, December remains on the able “as this speech can be interpreted as purely economic theorizing and thinking aloud,” Krosby added. Policy makers want to keep policy more easy during recoveries than would be called for under the traditional view that supply is largely independent of demand, she said. At the same time, Yellen noted an easy interest-rate stance “could have costs that exceed the benefits by increasing the risk of financial instability or undermining price stability.” The strategy remains hard to quantify, and other policies might be better suited to address damage to the supply side of the economy, the Fed chairwoman added. Sal Guatiere, senior economist at BMO Capital Markets, said he thought the Fed was still on track to raise rates in December as long as the economic data cooperate. Yellen said the idea of a high—pressure economy is one question for economists to answer. <div class=”inset external-content-inset”> <blockquote class=”twitter-tweet”> <a href=”https://twitter.com/hashtag/Yellen?src=hash”>#Yellen</a> speech basically a wish list of macro-economic research topics important for longer-term monetary policymaking — Joseph A. LaVorgna (@Lavorgnanomics) <a href=”https://twitter.com/Lavorgnanomics/status/786992839985094656″>October 14, 2016</a></blockquote> </div> She laid out a few other questions, such as whether the persistent rise in the personal-savings rate since the crisis might be “transitory.” And getting at the root of the financial crisis, Yellen asked the economic profession to study what can Fed interest-rate policy and financial oversight do to reduce the frequency and severity of future crises. She also asked economist to try to contemplate why the influence of labor-market conditions on inflation seems to be weaker than had been thought before the financial crisis. And the Fed chairwoman asked how a central bank might influence the public’s expectation of future inflation. Yellen said more study was needed on how the Fed could influence expectations of future interest rates and inflation. She said the Fed guidance that it would hold rates low, which lasted from 2011 through 2014, might be needed again, given that it remains unlikely that reductions in short-term interest rates alone will be an adequate response to a future recession. <div class=”module” id=”related-articles”>More from MarketWatch </div> <a href=”https://blockads.fivefilters.org”>Let’s block ads!</a> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a> Fri, 14 Oct 2016 17:35:56 +0000 Fed Chairwoman Janet Yellen says there may be some benefits to running a ”high-pressure economy.” article https://www.marketwatch.com/story/feds-yellen-sees-some-possible-benefits-from-running-economy-with-tight-labor-market-2016-10-14 Fed’s Yellen sees benefits in letting inflation exceed central bank’s 2% target https://s.marketwatch.com/public/resources/MWimages/MW-EW746_yellen_ZG_20160928092944.jpg en-US text/html https://www.marketwatch.com/story/feds-yellen-sees-some-possible-benefits-from-running-economy-with-tight-labor-market-2016-10-14?siteid=bulletrss https://feeds.marketwatch.com/~r/marketwatch/bulletins/~3/oeZNy_DABe4/bulletinredir.asp Consumer sentiment took a hit as concerns about the presidential election began to weigh, the University of Michigan <a href=”https://www.sca.isr.umich.edu/” target=”_new” class=”icon”>said Friday</a>. Its index for early October slid to 87.9 from 91.2, below expectations of a 92.0 reading among economists surveyed by Econoday. The sub-index of consumer expectations fell to 76.6, its lowest level in two years, mostly from households with incomes lower than $75,000. The index of current economic conditions ticked up to 105.5 from 104.2 last month. “It is likely that the uncertainty surrounding the presidential election had a negative impact, especially among lower income consumers,” survey director Richard Curtin wrote in a release. “Without that added uncertainty, the confidence measures may not have weakened.” Long-run inflation expectations fell to the lowest on record in the October index. Over the next five to 10 years, survey respondents expect inflation to run at 2.4%, down from 2.6% in the prior month. <div class=”module” id=”related-articles”>More from MarketWatch </div> <a href=”https://blockads.fivefilters.org”>Let’s block ads!</a> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a> Fri, 14 Oct 2016 14:09:50 +0000 Confidence is being dinged by worries about the election, especially among lower-income Americans. article https://www.marketwatch.com/story/consumer-sentiment-tumbles-to-13-month-low-as-election-uncertainty-takes-a-toll-2016-10-14 Consumer sentiment tumbles to 13-month low as election uncertainty takes a toll https://s.marketwatch.com/public/resources/MWimages/MW-ET739_Shoppi_MG_20160811154055.jpg en-US text/html https://www.marketwatch.com/story/consumer-sentiment-tumbles-to-13-month-low-as-election-uncertainty-takes-a-toll-2016-10-14?siteid=bulletrss

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