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
Stockaholics
20 Sep 14 08:27:18
$ELRA closed up 288.89% on over 315 MILLION Volume! Get our new penny stock picks: http://t.co/qloC4OFNEn $MS $HART $LRDR
chartguy89
20 Sep 14 07:28:28
MS Stock Chart $MS $GILD $NFLX $MS http://t.co/19eGef9nYp http://t.co/8uYGappuVP
leahanne
20 Sep 14 07:02:56
$ONVO Organovo Holdings (ONVO) 6.57 -0.42 (-6.01%) $MS $FNMA $OESX http://t.co/puwBxiLuC6
Investors Hangout
20 Sep 14 06:54:26
danrocks: $CLH any other opinions on this? $MS $XLY $HALO http://t.co/gfhWILjhC0
Investors Hangout
20 Sep 14 06:54:19
danrocks: $CLH any other opinions on this? $MS $XLY $HALO http://t.co/owsakw2zLo
danrocks
20 Sep 14 06:43:21
$CLH any other opinions on this? $MS $XLY $HALO $MS $UGAZ http://t.co/m2mVdLaAOY
Heath Sterling
20 Sep 14 06:17:13
@pinusofafad Thanks For The Follow And Gl Monday Please Ck Member Testimonials Here http://t.co/084C0f60aA $AAPL $FB $TWTR $F $MS $SPY
The Write Resume
20 Sep 14 01:27:14
RT @MorganStanley: $MS works w/@cfed to identify successful #assetbuilding platforms. The #ALC2014 Awards highlight some of the best.http:/…
Stockaholics
19 Sep 14 23:52:21
$ELRA closed up 288.89% on over 315 MILLION Volume! Get our new penny stock picks: http://t.co/qloC4OFNEn $MS $HART $LRDR
CMCMFIN
19 Sep 14 19:43:56
RT @SoberLook: RT : $MS: Global Securitized Products Investor Survey Results: 3Q14: Views on ECB’s ABS Purchases and Credit Easing http://t…
SoberLook.com
19 Sep 14 19:43:41
RT : $MS: Global Securitized Products Investor Survey Results: 3Q14: Views on ECB’s ABS Purchases and Credit Easing http://t.co/kePnWyAmFP
Veronica B
19 Sep 14 17:44:37
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Stock Signaling
19 Sep 14 17:01:14
After Hours Volume Leaders: $MUX $BTU $MS $FOXA $GORO $RAD $HERO $MDLZ $CRM $ORCL $WUBA $MDT $SNE $SNY $LBMH http://t.co/Vtx6dLy0Nw #nasdaq
ETF Trends
19 Sep 14 16:20:14
Broker-Dealer ETF Banks on Strong September Trades http://t.co/v1b3eXL4P1 #brokers #investing #ETFs #financials $IAI $XLF $GS $C $SCHW $MS
Tom Lydon
19 Sep 14 16:15:18
Broker-Dealer ETF Banks on Strong September Trades http://t.co/PVBvO87z1I #brokers #investing #ETFs #financials $IAI $XLF $GS $C $SCHW $MS
Yellen's Yodel ™
19 Sep 14 13:52:56
@CthruHD $LUV - HIGH $LYB - HIGH $MAR - HIGH $MAT - LOW $MDT - HIGH $MHFI - HIGH $MMC - HIGH $MMM - HIGH $MNK - HIGH $MO - HIGH $MS - HIGH
Xristofo
19 Sep 14 13:46:26
RT @JakeCatskill: The @nyse kept the syndicate bid on $BABA today. Monday might be a different story, just saying. $GS $MS closed badly.
Jake Catskill
19 Sep 14 13:37:35
The @nyse kept the syndicate bid on $BABA today. Monday might be a different story, just saying. $GS $MS closed badly.
BV Financials
19 Sep 14 13:30:06
$MS Certain Morgan Stanley Closed-End Funds Declare Quarterly Dividends.. http://t.co/d79FHLn6Jn
NASDAQ
19 Sep 14 13:01:17
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/sINiwU0DMe
Solo traders
19 Sep 14 13:01:15
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/T58wVggUjo
NASDAQ
19 Sep 14 12:58:09
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/1HZXgf0PvF
Solo traders
19 Sep 14 12:58:08
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/7yG8zNItGQ
Kym L
19 Sep 14 12:38:31
$MS monthly https://t.co/5SN7xxXT9j
Stock Rocket
19 Sep 14 12:32:27
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $MS $HART $LRDR
NASDAQ
19 Sep 14 12:04:06
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/kMcLko0r8v
Solo traders
19 Sep 14 12:04:04
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/VCLjej3dwL
Uldis Zelmenis
19 Sep 14 12:01:30
$MS: Global Securitized Products Investor Survey Results: 3Q14: Views on European ABS http://t.co/Xava0Bb5uK
Uldis Zelmenis
19 Sep 14 11:56:40
$MS: Global Securitized Products Investor Survey Results: 3Q14: Views on ECB’s ABS Purchases and Credit Easing http://t.co/wT0gvejtSV
Steven
19 Sep 14 11:14:06
RT @valuewalk: Big Banks Might Not Like OCC's Heightened Expectations by @MarkMelin http://t.co/jwKWTVHgJ6 $MS $CIT $GS $AXP
Mark Melin
19 Sep 14 10:51:49
RT @valuewalk: Big Banks Might Not Like OCC's Heightened Expectations by @MarkMelin http://t.co/jwKWTVHgJ6 $MS $CIT $GS $AXP
mgillaspie
19 Sep 14 10:49:20
RT @PolitixFireball: Dare we say #Soros? #nmpol RT: @MichaelBHare: That Udall has $Ms is not the issue. The issue is where the $ came fro…
Politix Fireball™
19 Sep 14 10:47:12
Dare we say #Soros? #nmpol RT: @MichaelBHare: That Udall has $Ms is not the issue. The issue is where the $ came from!
ValueWalk
19 Sep 14 10:44:49
Big Banks Might Not Like OCC's Heightened Expectations by @MarkMelin http://t.co/jwKWTVHgJ6 $MS $CIT $GS $AXP
Mike Hare
19 Sep 14 10:10:18
@PolitixFireball That Udall has $Ms is not the issue. The issue is where the $ came from!
Hedge Fund of One
19 Sep 14 10:04:14
Which $BABA underwriter will take lead in supporting low of day? $CS $DB $GS $JPM or $MS (back for another round of fingerpointing). :-)
TalkMarkets
19 Sep 14 09:44:33
Bank Stock Roundup $JPM $CS $COF $MS $DB $WFC $C $GS $BAC... http://t.co/lRH74Zn1qu
WallStreet
19 Sep 14 09:20:27
$MS - Has Morgan Stanley (NYSE:MS) Become A Successful Bank In Post-Financial Crisis? - http://t.co/JJzN0Y2peE
Kym L
19 Sep 14 09:19:11
I'm of the mind that $GS $MS rallies are about M&A and $BABA. That story could be done now and I see resistance on the monthly charts
Loic Jeanjean
19 Sep 14 09:17:40
$MS reached its 2010 level 36$ about. http://t.co/t9qFeTP7rq
Jon Vince
19 Sep 14 09:05:03
Wonder if Baba underwriteers gonna support 92.70 the was $MS supported $FB at $38 on its IPO day @carlquintanilla @ReformedBroker etal
James Collins
19 Sep 14 08:51:44
@BradCabana 3/3 raid health ctr/nursery sch, raid al Aqsa mosque, dismantle monument 4 M. Abu Khdeir... and earn $Ms for reconstruction. !!!
12Stocks.com
19 Sep 14 08:51:32
S&P100 #Stocks Trend $MCD $AMGN $MET $MSFT $USB $DD $ABT $BMY $COF $LMT $BA $JNJ $MS $LLY $UPS $MO $GD $WFC @ http://t.co/n4QZIDxy7w
Barry Scott
19 Sep 14 08:28:03
Mixed performance today among $BABA main bookrunner (Money for Nothin') mini ETF $GS $C $MS $DB $JPM $CS $XLF
Jake Catskill
19 Sep 14 08:26:54
$GS $MS new lows; $BABA.
The Intern
19 Sep 14 08:22:36
I walked my bid up from $69 to $90.50 and I will not go higher, fuck you $GS $C $JPM $MS
Trefis.com
19 Sep 14 08:01:18
Financials Weekly Notes: Morgan Stanley, Citigroup, Credit Suisse And RBS http://t.co/RtGKfkLdY6 by Trefis Team $CS $C $MS
Carpathia Capital
19 Sep 14 07:13:29
Subscribers: we have updated analysis on $XOM, $BAC, $GE, $WMT, $JNJ, $IBM, $GOOG, $AMGN, $AXP, $EMR, $LOW, $MDT, $MO, $T, $MS, $CXV and +
Stock Market Picks
19 Sep 14 07:13:01
StockTradeNyse's Results: $MS opened LONG on 9/16 at $35.14 and closed today's at $36.42 +.64% http://t.co/T3rgcZlJSs $QQQ $SPY $DIA
Green to Gold Group
19 Sep 14 06:56:27
EVENT: Tonight 8pm ET FDIC Bank Closers visit http://t.co/JGhTjwPJAs $XLF $WFC $MS $MET $JPM $GS $C $BAC $AXP $SPY $DIA $QQQ $EURUSD $DX_F
				
				
  +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.