logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

With Summers Out, Yellen Becomes Fed Chair Frontrunner

  +Follow September 16, 2013 10:50AM
Share:
Tickers Mentioned:

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)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for ms
Heath Sterling
24 Oct 14 20:04:07
@auntshell23 Thanks For The Follow Ck Us @ http://t.co/rAv0QQ0W21 $AAPL $TWTR $FB $SPY $MS $SO @MarketWatch #OptionsTraders
wininstocks2014
24 Oct 14 19:39:04
MS 34.32 Stock Charts $MS Morgan Stanley (NYSE) Last Updated: 10/24/2014 21:39:03 MS Stock Chart - 1 Month htt http://t.co/caNwpzInd1
Jahi Faucette
24 Oct 14 16:30:27
RT @CNBCFastMoney: 19 trades in 67 seconds http://t.co/RR9Sfb9m5P $YHOO $AMZN $MSFT $PG $JPM $XLF $GS $MS $BAC $C $OIH $DAL $SPY & more
DailyStockPicks
24 Oct 14 16:11:51
Attn $MS investors: U.S. government grants five open #Ebola waste permits. $SMED may also procure a contract http://t.co/Qf6xGOhRfA
Investing Philosophy
24 Oct 14 16:10:46
RT @CNBCFastMoney: FINAL TRADE: Your first move for Monday, Oct. 27 http://t.co/1RNm2XiZuX $EWZ $GS $EWG $MS http://t.co/tMsC4PWCDx
CNBC's Fast Money
24 Oct 14 16:09:45
19 trades in 67 seconds http://t.co/RR9Sfb9m5P $YHOO $AMZN $MSFT $PG $JPM $XLF $GS $MS $BAC $C $OIH $DAL $SPY & more
Bruno J. Navarro
24 Oct 14 16:09:27
Stocks for next week: 19 trades in 67 seconds http://t.co/BuilwWXElH $YHOO $AMZN $MSFT $PG $JPM $XLF $GS $MS $BAC $C $OIH $DAL $SPY
DAN BRIGGS
24 Oct 14 16:06:14
RT @CNBCFastMoney: FINAL TRADE: Your first move for Monday, Oct. 27 http://t.co/1RNm2XiZuX $EWZ $GS $EWG $MS http://t.co/tMsC4PWCDx
CNBC's Fast Money
24 Oct 14 16:05:01
FINAL TRADE: Your first move for Monday, Oct. 27 http://t.co/1RNm2XiZuX $EWZ $GS $EWG $MS http://t.co/tMsC4PWCDx
Bruno J. Navarro
24 Oct 14 16:04:08
Your first trade for Monday, Oct. 27 http://t.co/knuf5WlCEZ $EWZ $GS $EWG $MS
4-traders.com
24 Oct 14 15:00:04
Morgan Stanley : Performance Soars During Third Quarter http://t.co/6gE6ztyKaj $MS
FlowerPower
24 Oct 14 14:27:14
#FastMoneyEspresso FINAL TRADES: Tim Seymour—> buy $EWZ Pete Najarian —> buy $GS Brian Kelly —> sell $EWG Guy Adami —> buy $MS
Stockaholics
24 Oct 14 13:51:50
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $MS $HART $LRDR
Rodrigo Alfaro
24 Oct 14 12:54:20
$MS compro 40mil acciones de $ALFA a 41
Day Trade Alerts
24 Oct 14 12:34:54
via #AlertTrade SHORT Seller Alert $MS-A - MORGAN STANLEY #ShortSeller #Stocks http://t.co/VS8RO1bzXJ
Market Int Center
24 Oct 14 11:54:08
Potential Morgan Stanley $MS Trade Targets 4.37% Return ( http://t.co/dI2OpJJTj0 )
4-traders.com
24 Oct 14 11:15:02
Morgan Stanley : Challenge Your Employees to Go Pro Bono http://t.co/VtLkUFr6vA $MS
Samuel Brown
24 Oct 14 10:31:22
$MS Morgan Stanley's earnings illusion http://t.co/GRYRSPSDQh
Monitr
24 Oct 14 10:21:00
Ukraine economic revival hangs on parliament vote #Monitr $MS http://t.co/dOJiVanOrt
TP Strategic Partner
24 Oct 14 10:14:57
Buying $MS $BAC Based on today's activity in HFT they are scalping huge returns
Gordon Gekko
24 Oct 14 10:10:26
Update: Morgan Stanley Q3'14 Earnings $MS http://t.co/FygcndCq6r
Stockaholics
24 Oct 14 09:32:52
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $MS $HART $LRDR
Stock Relay
24 Oct 14 09:24:41
$ACSF E.P.S. Click Here: http://t.co/N8vfkdb78p Also See: $MS $AMRB $IFF $SCSS ~
12Stocks.com
24 Oct 14 08:51:07
S&P100 #Stocks Performance $PG $GILD $BMY $CMCSA $AEP $EXC $PFE $MS $UPS $GS $MMM $INTC $VZ $ABBV $BAX more@ http://t.co/n4QZIDxy7w
4-traders.com
24 Oct 14 08:30:05
Lloyds Banking Group plc 3Q 2014 -- Forecast http://t.co/UItVhfj7Nv $LLOY $MS $FP $C
4-traders.com
24 Oct 14 08:25:03
BP plc 3Q 2014 -- Forecast http://t.co/6iwQIEFhkB $BP. $GLE $MS $KN $C
4-traders.com
24 Oct 14 08:20:06
BBVA SA 3Q 2014 -- Forecast http://t.co/F1ODLzbEeW $BBVA $BES $MS $BPI $C
4-traders.com
24 Oct 14 08:20:05
BG Group 3Q 2014 -- Forecast http://t.co/YRZTuD65lh $BG. $GLE $MS
4-traders.com
24 Oct 14 08:20:03
Total SA 3Q 2014 -- Forecast http://t.co/EPvGkEPH7r $FP $GLE $MS $KN $C $BARC
4-traders.com
24 Oct 14 08:20:02
Royal Dutch Shell 3Q 2014 -- Forecast http://t.co/jCcp1GixBz $RDSA $GLE $MS $KN $CIGHL
mike
24 Oct 14 07:41:35
RT @SeekingAlpha: Morgan Stanley - After A Solid Quarter, Only Buy On Dips http://t.co/lL6pt9pCmJ $MS
mike
24 Oct 14 07:40:56
@whutrades never thought on those lines - there is an investment even in a disaster ! #ebola $spx $smed $VIX $MSFT $ms
Nate Griffin
24 Oct 14 07:35:27
$MS showing more strength than some of the other financials.
FonsieTrader
24 Oct 14 04:47:04
Bullish MACD Crossovers 2/3 $GGB $HAL $HES $HZNP $IDTI $ING $JASO $JCP $LGF $LPI $MACK $MS $NFX $NOK $ONNN $PQ $PTEN http://t.co/qVDoY7yvof
Davide Del Gaudio
24 Oct 14 04:05:19
RT @SeekingAlpha: Morgan Stanley - After A Solid Quarter, Only Buy On Dips http://t.co/lL6pt9pCmJ $MS
Traffic Generator
24 Oct 14 03:34:34
RT @SeekingAlpha: Morgan Stanley - After A Solid Quarter, Only Buy On Dips http://t.co/lL6pt9pCmJ $MS
Quantpost Financial
24 Oct 14 03:29:48
$MS News: "Morgan Stanley - After A Solid Quarter, Only Buy On Dips $MS …" http://t.co/c48F00Ccbv Board view: https://t.co/1yfmWAzRqe
Seeking Alpha
24 Oct 14 03:29:46
Morgan Stanley - After A Solid Quarter, Only Buy On Dips http://t.co/lL6pt9pCmJ $MS
NASDAQ
24 Oct 14 03:07:15
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/bV8i30wc81
NASDAQ
24 Oct 14 03:07:14
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/sC6aOFJXy4
Solo traders
24 Oct 14 03:07:13
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/uo7Gfc9l1k
Solo traders
24 Oct 14 03:07:11
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/TnNldxoD98
Fuck Buddy Finder
24 Oct 14 02:13:29
#fuckbuddies ★ $ms sprinkle$★come eat my spirkles if u like spirkles on ur icecream u well… http://t.co/CfOTqFvgwq http://t.co/IWMO4aX5DI
Polyticks
24 Oct 14 02:11:42
RT @MooreMichaelJ: Amid Fed scrutiny of phys. commods, $MS set up a nat gas compression and shipping business. Now it's looking to sell htt…
4-traders.com
24 Oct 14 01:55:02
Weaker travel and leisure stocks push FTSE lower http://t.co/nGGLJOvSbs $MS $PFE $BLUE $IAG $AZN $TSCO $0QA1
DailyStockPicks
23 Oct 14 22:17:32
During this #Ebola outbreak, $MS investors will also want to buy $SMED. They handle medical and hazardous waste http://t.co/vTV3wPBONo
Bidness Etc
23 Oct 14 20:15:05
The Wall Street bank is looking to exit the physical commodities business by selling its natural-gas exports unit http://t.co/y5lmvrMzI2 $MS
wininstocks2014
23 Oct 14 17:45:15
MS 33.96 Stock Charts $MS Morgan Stanley (NYSE) Last Updated: 10/23/2014 19:45:15 MS Stock Chart - 1 Month htt http://t.co/PYQ8eOJhAt
wininstocks2014
23 Oct 14 17:45:14
MS 33.96 Stock Charts $MS Morgan Stanley (NYSE) Last Updated: 10/23/2014 19:45:14 MS Stock Chart - 1 Month htt http://t.co/MNHLc291mf
Jody Kaminsky
23 Oct 14 17:11:55
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
				
				
  +Follow September 16, 2013 10:50AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.