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With Summers Out, Yellen Becomes Fed Chair Frontrunner

  +Follow September 16, 2013 10:50AM
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While investors had already braced for some tapering of the $85 billion a month quantitative easing program, fears that QE would be reduced drastically were abated on Sept 16 when Larry Summers withdrew from his bid to become the new Federal Reserve Chairman. On the news of Summers’ withdraw, the Dow, the Treasury, and financials all rallied.

While Summers’ exact plans were he to become the Fed Chair were uncertain, investor perception was that he would aggressively curtail government stimulus at a much faster rate than current chair Ben Bernanke, who is set to step down in Jan. 2014.

With Summers out of the picture, current Vice Chair of the Board of Governors of the Federal Reserve Janet Yellen is now the clear frontrunner for the position. Yellen was a vocal proponent of government stimulus, and is widely expected to continue Bernanke’s programs more or less as he would have.

As opposed to the intellectual, liberal Yellen, Summers is much more hawkish and has a reputation as a wildcard prone to “outside-the-box thinking” which tends to make investors skittish.

The Fed is expected to meet on Sept 18, where it is believed they will announce they are scaling back quantitative easing. However, the market has already prepared for a tapering in the neighborhood of $10 to $15 billion a month, and that “the tapering is (already) widely discounted,” wrote strategists at KBC Bank in Brussels.

The markets, both domestically and internationally, rallied on the news of Summers’ withdraw and the presumptive maintaining of the status quo. US Treasuries were up significantly, and the Dow neared a new all time, rising over 150 points in early trading.

Investment banks Morgan Stanley (MS) and Goldman Sachs Group (GS) were both up on the day, as the majority of the financial sector rose with the good tidings. Morgan Stanley gained 2.4 percent to hit $28.81 a share. Goldman was up 2.07 percent to hit $167.40 a share.

 

(image of Larry Summers courtesy of WIkimedia Commons)

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Results for ms
Carri Degenhardt
18 Apr 15 09:40:26
@RaymondJames Advisor: "Dysfunctional management is the primary reason I left $MS years ago to go Independent" http://t.co/K5Cx9pptZA #RIA
Robert Graham
18 Apr 15 09:30:14
@RaymondJames Advisor: "Dysfunctional management is the primary reason I left $MS years ago to go Independent" http://t.co/b1qzYg37Hp #RIA
Andrew Parish
18 Apr 15 09:20:07
@RaymondJames Advisor: "Dysfunctional management is the primary reason I left $MS years ago to go Independent" http://t.co/xJ9TuCX2X1 #RIA
AdvisorHub
18 Apr 15 09:10:08
@RaymondJames Advisor: "Dysfunctional management is the primary reason I left $MS years ago to go Independent" http://t.co/cUF47SqO2o #RIA
AdvisorHUB Rumors
18 Apr 15 09:00:22
@RaymondJames Advisor: "Dysfunctional management is the primary reason I left $MS years ago to go Independent" http://t.co/h3UcvoCJ6X #RIA
Kym L
18 Apr 15 07:59:48
Earnings Monday $CNI $HAL $IBM $LRCX $MS $STI $STLD (via Zacks)
Briefing.com
18 Apr 15 07:48:15
Upcoming #earnings conference calls/webcasts http://t.co/RAJvTVuBaK $HAS $MS $IBM $VZ $HOG $KMB $CMG $AMGN $CREE $YHOO $ABT $YUM
Bharathquick
18 Apr 15 07:45:29
RT @robwilliamsNY: Bulls and Bears: A collection of Wall Street opinion from http://t.co/dWMyh7TuYf http://t.co/y7na1l2uVD $SPY $GS $BAC $…
CFA Institute Events
18 Apr 15 07:44:00
RT @leahbennett4: Learn to thrive in the workplace & #StrategizetoWin with @CarlaAnnHarris of $MS this June http://t.co/JZVDwV1vNR http://t…
TalkMarkets
18 Apr 15 07:39:03
Revenue Weakness Stands Out In Q1 Earnings Season $YHOO $VZ $T $STT $PG $MS $MSFT $MCD $LYB $HAL $GOOGL $GM http://t.co/s8mVsMjBwe
LCI
18 Apr 15 07:38:09
RT @TravisMKnight: $MS Buy At $36 If Markets Hold... Nice.. http://t.co/QFfI7P4n4T
Tad Doughty, CFS
18 Apr 15 07:29:03
Great @WSJ graphic; big bank profits: http://t.co/9sRyme9GgU $MS $GS $C $BAC $WFC $JPM http://t.co/y5e8M0oynm
FinSentS SP500
18 Apr 15 07:12:41
$MS:US Morgan Stanley (MS) Scheduled to Post Quarterly Earnings on Monday #MORGAN STANLEY http://t.co/1QFz19PCGX #SP500
PennyStock Zone
18 Apr 15 07:02:08
[SALE!] http://t.co/nLHWZlk4HX <<-- 50% -75% SALE on all profitly stock trading gurus and DVDs!! $BLDR $MS $MDCO $RMTI $SDRL $GREK
Rob Williams
18 Apr 15 06:26:12
Bulls and Bears: A collection of Wall Street opinion from http://t.co/dWMyh7TuYf http://t.co/y7na1l2uVD $SPY $GS $BAC $BCS $CS $MS $JPM
Leah Bennett
18 Apr 15 05:58:38
Learn to thrive in the workplace & #StrategizetoWin with @CarlaAnnHarris of $MS this June http://t.co/JZVDwV1vNR http://t.co/7XwBDK7b6e
scott
18 Apr 15 04:09:15
RT @CML_VisualFeed: Largest Diversified Financials Debt Level 1: $GS 2: $MS 3: $AXP Chart: http://t.co/2vbbvEEmTO http://t.co/GJfltVB4gL
Capital Market Labs
18 Apr 15 03:44:30
Largest Diversified Financials Debt Level 1: $GS 2: $MS 3: $AXP Chart: http://t.co/2vbbvEEmTO http://t.co/GJfltVB4gL
Gotham City Capital
18 Apr 15 03:08:07
$MS Buy At $36 If Markets Hold... Nice.. http://t.co/QFfI7P4n4T
Nick Curran
18 Apr 15 02:04:14
RT @TheStreet: The volatility the market has witnessed so far in 2015 may help $MS grow revenue and profits at a faster rate http://t.co/cT…
TalkMarkets Recap
18 Apr 15 01:39:03
Revenue Weakness Stands Out In Q1 Earnings Season $YHOO $VZ $T $STT $PG $MS $MSFT $MCD $LYB $HAL $GOOGL $GM http://t.co/62Cv53CM0o
Margaret McCrohon
18 Apr 15 01:37:31
RT @PurAndTell: @MargMcCrohon Abbott/Hockey cld start by putting back $Ms they're stealing from the states so they can fund rejects like Li…
Rhondda Purtell
18 Apr 15 01:35:51
@MargMcCrohon Abbott/Hockey cld start by putting back $Ms they're stealing from the states so they can fund rejects like Limborg @Matristik
Alpha Maven
18 Apr 15 01:18:12
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
stockmarketnow
18 Apr 15 00:49:24
RT TheStreet: The volatility the market has witnessed so far in 2015 may help $MS grow revenue and profits at a fa… http://t.co/MH6Tm6u6t2
Alysia Sarkisian
18 Apr 15 00:36:53
RT @TheStreet: The volatility the market has witnessed so far in 2015 may help $MS grow revenue and profits at a faster rate http://t.co/cT…
TheStreet
18 Apr 15 00:35:20
The volatility the market has witnessed so far in 2015 may help $MS grow revenue and profits at a faster rate http://t.co/cT0KZfcxav
FinSentS SP500
17 Apr 15 23:10:42
$MS:US Morgan Stanley (MS) Scheduled to Post Quarterly Earnings on Monday #MORGAN STANLEY http://t.co/xssg6kzu8v #SP500
US Banking News
17 Apr 15 23:02:20
Morgan Stanley $MS Scheduled to Post Quarterly Earnings on Monday http://t.co/02yS8No2XN
Breaking News Now
17 Apr 15 23:00:11
$MS: Morgan Stanley (MS) Scheduled to Post Quarterly Earnings on ...: http://t.co/qmYDOygEMf
Ticker Report
17 Apr 15 22:56:36
Morgan Stanley $MS Scheduled to Post Quarterly Earnings on Monday http://t.co/FnUWrsAdUP
Jennifer Gillooly
17 Apr 15 22:08:50
RT @GreenBuckaroo: Taxpayers give zoo $Ms, Zoo gives public the finger #Seeya @dowc @seattlecouncil @ http://t.co/UCsZPnAM7S via @KING5Seat…
Molly
17 Apr 15 22:04:00
RT @GreenBuckaroo: Taxpayers give zoo $Ms, Zoo gives public the finger #Seeya @dowc @seattlecouncil @ http://t.co/UCsZPnAM7S via @KING5Seat…
Paige Heggie
17 Apr 15 21:43:52
Taxpayers give zoo $Ms, Zoo gives public the finger #Seeya @dowc @seattlecouncil @ http://t.co/UCsZPnAM7S via @KING5Seattle
Paige Heggie
17 Apr 15 21:17:06
@petesteinbrueck My city is helpless against well written zoo press releases. As @SeattleCouncil would u allow the $Ms to keep flowing?
Kevin Zueger
17 Apr 15 20:48:27
@HotPatriotChick @RedNationRising I think the word is sympathetic. He needs to fire whomever booked this event. He just lost $Ms and fans.
Donald W.
17 Apr 15 19:31:20
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
leahanne
17 Apr 15 19:12:27
Volume Alert - MS 36.75 Morgan Stanley $MS Hit a high today of 37.07 Closing the day 04/17/15 at 36.75 -0.61 - http://t.co/niI8Sr49Dj
leahanne
17 Apr 15 19:12:05
$MS Volume Alert - MS Stock 36.75 Morgan Stanley $MS Hit a high today of 37.07 Closing the day 04/17/15 at 36.75 - http://t.co/3ws69Xijy0
TalkMarkets
17 Apr 15 18:56:14
Revenue Weakness Stands Out In Q1 Earnings Season $YHOO $VZ $T $STT $PG $MS $MSFT $MCD $LYB $HAL $GOOGL $GM http://t.co/s8mVsMjBwe
stockmarketnow
17 Apr 15 18:07:07
RT TheStreet: What $GS earnings teach us about $MS potential http://t.co/ULBzefkREv
John Michael
17 Apr 15 18:02:03
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
Alysia Sarkisian
17 Apr 15 18:01:58
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
Andrew Parish
17 Apr 15 17:59:33
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
Nicholas Grambas
17 Apr 15 17:55:29
RT @TheStreet: What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
TheStreet
17 Apr 15 17:55:03
What $GS earnings teach us about $MS potential http://t.co/tjNMB8t9c7
Usman zahid
17 Apr 15 16:41:30
RT @Bidnessetc: Morgan Stanley Earnings Preview - http://t.co/X5q9Cgpg9T $MS http://t.co/daqPro9Xjg
Breaking News Now
17 Apr 15 16:19:18
$HON $AMZN $MS: Investors look to earnings for market direction: http://t.co/P0PeiHJaTE
WICOM  LLC
17 Apr 15 14:47:19
RT @LaMonicaBuzz: Plethora of earnings next week! $MS $IBM $VZ $YUM $CMG $YHOO $BA $KO $MCD $T $QCOM $FB $EBAY $GM $PEP $CAT $PG $MMM $AMZN…
aznboi27
17 Apr 15 14:41:54
4/20 (MON) Earnings - Before $MS // After $IBM
				
				
  +Follow September 16, 2013 10:50AM
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