Stocks are slightly higher and bonds declined today on reports
that Larry Summers is likely to lead the Fed and retail sales
Japan's Nikkei newspaper
that President Barack Obama plans to nominate Larry Summers as
Chairman of the Federal Reserve, citing unnamed White House
sources. The nomination might come out as early as next week,
following the Fed's September policy meeting, where it will decide
the timing and degree to which it will taper off its asset
Though there is some scepticism of the news report, the market
reaction clearly shows that Summers is expected to scale back
quantitative easing faster than Janet Yellen would, the other
front-runner to replace Ben Bernanke.
The dollar rose against other currencies, US bond yields increased,
and US stock index futures rose on news of Summers' potential
(INDEXDJX:.DJI) futures were up 0.10% at 15,261 while futures
contracts on the
(INDEXSP:INX) ticked up 0.02% to 1,678.70.
(INDEXNASDAQ:.IXIC) futures gained 0.15% to 3,174.25. Gold fell
1.36% to $1,312.50/ounce.
Today also brought a large amount of US economic data. August
retail sales missed expectations, rising 0.2% on a monthly basis.
Excluding autos and gas, sales rose just 0.1%. Producer prices rose
0.3% last month, faster than economists expected. Without food and
energy costs, the prices of goods at the factory gate were flat in
Later this morning, we will get the preliminary reading for the
September Reuters/University of Michigan Consumer Sentiment Index,
which economists expect to tick down by 0.1 point to 82. Business
inventories are also likely to have risen 0.3% in July.
Yesterday afternoon, Twitter disclosed (in a tweet, of course) that
it "confidentially submitted an S-1 form to the SEC for a planned
IPO." Twitter is using a rule from the JOBS Act that allows
"emerging growth companies" with less than $1 billion in annual
revenue to file for a public offering on the down low. SkyNews
reported that the offering will be on the
) rather than
) is reportedly Twitter's lead underwriter.
All the News That Didn't Fit in Twitter's IPO
In an interview with Fox Business News yesterday,
) CEO Elon Musk made some off-the-cuff comments that sent the stock
down almost 1%.
"In the past, I said it's really crazy to short Tesla," he told
reporter Liz Claman. "Is it so crazy to short Tesla right now? I
mean, it's not as crazy, but I still think it's probably not a good