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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
ProTradersNews
28 Jul 15 12:37:04
$GOOGL $MS: Google Inc (GOOG): Come For The Growth, Stay For The Dividend: http://t.co/QsV5v0jIxP
Solo traders
28 Jul 15 12:34:03
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/LuezGT0DUe
Solo traders
28 Jul 15 12:34:02
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/selHDgvNLY
Solo traders
28 Jul 15 12:31:04
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/WGp1h0hBnJ
Solo traders
28 Jul 15 12:31:03
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/59gRcGRTFO
Solo traders
28 Jul 15 12:31:03
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/YoY71iawZB
Solo traders
28 Jul 15 12:31:02
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/PxEFBgR1zc
Breaking News
28 Jul 15 12:31:02
$MS: Market Update (NYSE:MS): China fund buys Australian office blocks ...: http://t.co/EUTOhyctNa
Solo traders
28 Jul 15 12:28:01
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/iJlW3fgnfb
Solo traders
28 Jul 15 12:25:02
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/iVPao3PfBX
Solo traders
28 Jul 15 12:22:03
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/0xafwEj7wQ
Solo traders
28 Jul 15 12:19:02
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/fXsRx9kj2b
Solo traders
28 Jul 15 12:19:01
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/uVx4jwS6Eq
Solo traders
28 Jul 15 12:16:02
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/ibNcyPnU2V
BreakingStocksNews
28 Jul 15 12:15:02
$MS: New SEC Filing for MS: Form FWP (No. 0000950103-15-005872): http://t.co/yBYg2hDcwA
SEC Filings Reporter
28 Jul 15 12:14:11
NEW SEC Filing for $MS filed a moment ago: http://t.co/bMvuDX3Enr http://t.co/KLrkPU8oa4
Alex Ihnen
28 Jul 15 12:07:33
@cipmedina The quote/saying really means that ideas without $Bs, or $Ms, or even thousands behind them need cheap, flexible places.
PamphletShop
28 Jul 15 11:57:30
$MU Micron Technology Inc http://t.co/UKZ3MRGmpH $AMZN $GOOGL $BMY $EBAY $ACN $MCD $SBUX $MA $TWX $FB $AGN $AIG $NKE $DIS $DOW $MS $CEMEX
DR JAMES CABOT
28 Jul 15 11:18:03
RT @carletonenglish: What does my best friend @kartarr have in common w/ the former CFOs of $MS & Blackstone? http://t.co/aCKY7bzAMi
Zubeyr Kamil Açıksar
28 Jul 15 11:11:19
RT @carletonenglish: What does my best friend @kartarr have in common w/ the former CFOs of $MS & Blackstone? http://t.co/aCKY7bzAMi
Carleton English
28 Jul 15 11:10:57
What does my best friend @kartarr have in common w/ the former CFOs of $MS & Blackstone? http://t.co/aCKY7bzAMi
Michael Cook
28 Jul 15 11:05:36
This New Website Offers A Simple Way To Make Money From Home! Subscribe Here For Free: http://t.co/KX0R6ZkETQ $MS $HART $LRDR
Paul Henry
28 Jul 15 11:05:32
Our Penny Stock Picks Have Gained 3,600% In 10 Months! Join Our New Money Making Platform: http://t.co/BuGVmTyfbY $MS $HART $LRDR
Michael James
28 Jul 15 11:03:00
Our Stock Alert On $GEQU Gained As Much As 525% In The Past 4 Weeks! Huge News: http://t.co/LPmbrSUYJp $MS $HART $LRDR
John L. Bair
28 Jul 15 10:36:24
$BBRY #Faucettes #Simona $MS $GS $CS baby IPO & $BB.CA #1 competitor $MOBL melting down nicely as it should B4 lack of earnings report JMHO
John L. Bair
28 Jul 15 10:11:02
#BBFactCheck $BBRY You would think after a few decades, folks would catch on to the likes of $MS $CS $GS Faucette Simona, quite pathetic
Midnight Society Ent
28 Jul 15 10:02:25
RT @TradeBlueOyster: $bbry @blackberry true valuation is starting to show. Even the perpetual bear $MS thinks that this company has legs. @…
Tad Doughty, CFS
28 Jul 15 09:50:44
#Brokers are trusted less than #Uber drivers. Thankfully I'm a fiduciary #advisor! http://t.co/nJt7kgf3A8 $STUDY $MS $BAC $UBS
John L. Bair
28 Jul 15 09:43:49
$BBRY To me the gang at $MS isn't any different than the mob, the same at $CS $GS too JMHO History & ongoing developments speaks volumes
Taylor
28 Jul 15 09:41:02
$AAPL and banks $BAC $GS $MS etc etc not participating in this rally. Just an observation.
Sweet Platform
28 Jul 15 09:36:16
MS Top news - Jul 28th, 2015 $MS http://t.co/ORcSEoltqZ
Ronnie Matrix.
28 Jul 15 09:14:47
RT @LaMonicaBuzz: #StupidStock Move of the Day! $BBRY up 6% on $MS upgrade to equal weight? Price target still just $7. Yes, $BBRY has cash…
Stock Prop
28 Jul 15 09:03:41
Added a 5th horseman to my financial basket by picking up some $C this morning. Looks good long term. Now long $C $GS $JPM $MS and $WFC.
BrutusMaximus
28 Jul 15 09:02:03
wow $BBRY up 6% on $MS upgrade to equal weight ? Price target still just $7.
Paul R. La Monica
28 Jul 15 09:00:47
#StupidStock Move of the Day! $BBRY up 6% on $MS upgrade to equal weight? Price target still just $7. Yes, $BBRY has cash. That's not news.
John L. Bair
28 Jul 15 08:56:50
$BBRY No buyout rumors, so $MS finally had to recognize $3.3 billion of COH. Amazing they have been buying while downgrading = pathetic
Blue Oyster
28 Jul 15 08:48:21
$bbry @blackberry true valuation is starting to show. Even the perpetual bear $MS thinks that this company has legs. @johnchen for president
Blue Oyster
28 Jul 15 08:47:05
@amberkanwar This is a way for $MS to cover its own ass before the stock breaks the ceiling back to 10.
Bruce H Snyder
28 Jul 15 08:44:51
$TXN $MS and $F going #ExDividend tomorrow. Contact your broker to discuss early assignment risk if you are short ITM Calls.
John L. Bair
28 Jul 15 08:30:25
$BBRY Morgan Stanley knew all along of the cash pile! What nonsense! @ $MS Typical #Faucette Bologna !!!
Mike
28 Jul 15 08:24:16
$BBRY Wow the powerful upgrade from $MS.
Chris Lau
28 Jul 15 08:15:06
$BBRY: Welcome to the dark side, $MS's James Faucette. Buy. http://t.co/vxpPKhmkcL
John L. Bair
28 Jul 15 08:14:34
"@chrispycrunch $BBRY: Welcome to the dark side, $MS's James Faucette. Buy. http://t.co/EKdXFM2Pbu" You mean the criminal side???
StockenheimerSchmidt
28 Jul 15 07:52:51
Huge Gains On Stock Picks, Plus A Major Announcment: http://t.co/L7DCrvU4Ev $MS $HART $LRDR
PamphletShop
28 Jul 15 07:52:18
$APPF AppFolio Inc http://t.co/UKZ3MRGmpH $AMZN $GOOGL $BMY $EBAY $ACN $MCD $SBUX $MA $TWX $FB $AGN $AIG $NKE $DIS $DOW $MS $ABT $AAPL
wsnewspublishers
28 Jul 15 07:29:30
Active Stocks in the Spotlight: http://t.co/xQrFaZ5Qm3 $MS $UNP $NOAH
WKRB News
28 Jul 15 07:14:51
Morgan Stanley to Issue Quarterly Dividend of $0.15 on August 14th $MS http://t.co/blHdKIxiPn
Best Trader
28 Jul 15 07:08:03
@RTTNews #rate hike from #yellen not looking too promising with these numbers, no? @cnbc $GS $BAC $WFC $MS
DailyStockPicks
28 Jul 15 07:04:25
$OCLS cheap health care stock. Price target of $5. 200%+ upside $ORCL $MS $NOV $CF $PRGO $AZO investors read http://t.co/rWpJvFmAFr
John L. Bair
28 Jul 15 07:01:14
Commented on StockTwits: $MS $BBRY http://t.co/XSnrsE7ZBa http://t.co/5CQIBNZiVm
				
				
  +Follow September 16, 2013 10:50AM
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