Odds of next rate hike slip to April 2016 as Yellen speaks: CME

Now that the Federal Reserve has pulled the trigger and hiked rates, all eyes will be on the future trajectory of additional increases. Before the hike, there was an implied odds of 9.7 percent that the Fed would hike the target rate to 0.75 percent in January. It now stands at 9.5 percent. Not until April, do traders see a ... Read More »

Options activity is surging in the high yield market

The high yield bond market bounced off of multiyear lows this week asequities rallied in the face of Wednesday’s highly anticipated Fed announcement. Despite the move, the high yield corporate bond ETF, the HYG, was still down 10 percent this year, and some traders sense more pain could be coming. On Tuesday, when the HYG was up more than 1 ... Read More »

Top blogger: Here’s your best play for 2016

Editor’s note: David Alton Clark is the No. 1-ranked financial blogger based on pick returns, according to The auto industry has been on fire throughout 2015. Auto sales are on track for the best year since 2000. In November, total industry sales hit roughly 1.33 million vehicles. This translates into a total seasonally adjusted annual rate of roughly 18 ... Read More »

Apple’s stock nears bear market. Buy it?

Shares of the world’s biggest company by market capitalization are about to enter bear market territory, but that feat may present a buying opportunity, if history is any guide. Since reaching a record price of $134.54 on April 24, Apple’s stock fell 17 percent as Wall Street predicts a slowdown in iPhone sales, the firm’s biggest source of revenue. As ... Read More »

The Fed and markets: It’s all about communicating how fast the Fed will raise

Here’s the two questions that matter today: 1) How does the Fed communicate its intentions? The crowded trade is “dovish Fed.” The risk, therefore, is that the Fed appears more hawkish than anticipated. Everyone believes Yellen will reiterate they plan to keep rates low for an extended period. But how to communicate that? Simply saying the Fed is “data dependent” ... Read More »

It’s time to take money off the table: Louise Yamada

On CNBC’s “Futures Now” Tuesday, the veteran technician called this week’s rally leading into the Federal Reserve’s big announcement nothing but a mirage, and she warned against the disturbing price action “beneath the surface” of the broader market. All major U.S. indexes jumped Tuesday, with the S&P 500 seeing its first two-day winning streak since early November in anticipation of ... Read More »

Early movers: VRX, JOY, AMGN, CVS, P, AMC, HAL, BH & more

Valeant Pharmaceuticals — Valeant cut its full-year 2015 earnings outlook, and provided a 2016 outlook below current consensus estimates ahead of its Investor Day, although the tone of the release was optimistic. Separately, CEO Michael Pearson will be called to testify before a House of Representatives panel looking into surging drug prices, according to Oversight Committee Democratic and Republican aides. ... Read More »

Oil at $100? 10 ‘outrageous’ forecasts for 2016

Oil rebounding to $100 a barrel by the end of 2016? A strong euro amid quantitative easing? These are just some of the “outrageous predictions” from Saxo Bank for 2016. The Danish investment bank’s 10 “unlikely, yet perhaps underappreciated” events that could have significant consequences on the financial landscape also include the Russian ruble rising 20 percent versus the US ... Read More »

This is how to trade the Fed’s second rate hike

. Traders believe the first rate rise in nine years by the Federal Reserve is all but certain to come Wednesday. So now they are turning their sights to the second hike and how to trade in between those two moves. A majority of investors believe the second rate increase will come in June 2016, according to the CME Group ... Read More »

The sector that’s already celebrating a rate hike

Financial stocks are widely expected to be the big beneficiaries of a Fed rate hike. And with the Federal Reserve expected to announce the long-expected move on Wednesday, the financials sector appeared to celebrate early, with a more than 2 percent rise on Tuesday. Indeed, within the sector, the clear leaders were the bank stocks, which made up Tuesday’s best ... Read More »