Show Entire Article
Politics the hot topic on trading desks this morning. Democrats lost gubernatorial races in Virginia and New Jersey.
TraderTalk is that: 1) this will change the tenor of the healthcare debate, and 2) put more onus on the Fed to help the economy because the fiscal side of economic assistance—another stimulus plan, for example—is now out the window.
The Fed statement really matters now. The key phrase for the Fed decision revolves around interest rates and whether the Fed will keep language promising to keep rates exceptionally low "for an extended period." Commentary on the economy will also be watched--some comment on mild improvement is expected.
Elsewhere:
1) IPOs: another one bites the dust. Aviv REIT, which focuses on ownership of healtchare properties, pulled its $300 million IPO, which was supposed to price last night. This, a few days after international natural gas company AEI also shelved its $800 million IPO. The problem: picky buyers looking for lower prices, and a change in market sentiment.
Next test for the IPO market: tonight, when Hyatt (H) is expected to price 38 million shares at $23-$26 (about $931 million).
Page 1 of 3 | Next PageShow Entire Article
More Top Stories