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United States. Federal Reserve Board

10 Key Takeaways for Tuesday, February 24: Markets Await Yellen's Testimony and GDP Data

Strategic Insights

— 3 min read

Markets are preparing for Federal Reserve Chair Janet Yellen's Congressional testimony, which may provide insight into the timing of the Fed's anticipated interest rate hike. Meanwhile, the GDP data is expected to be released on Wednesday, which could have a significant impact on the markets. Home Depot reported a 36% increase in fourth-quarter profit, and Target ignited an online shipping price war with Amazon, Best Buy, and Wal-Mart.

Key Takeaways:

  • U.S. stock futures are ticking up slightly ahead of Yellen's testimony, with the S&P 500 (SPY) expected to rise 0.03% to 4,960.97, the Nasdaq (QQQ) expected to rise 0.1% to 4,960.97, and the Dow Jones Industrial Average (DIA) expected to sink 0.13% to 18,116.84.
  • Home Depot reported a 36% increase in fourth-quarter profit, with net sales up 8.3% to $19.16 billion for the quarter.
  • Target has ignited an online shipping price war with Amazon, Best Buy, and Wal-Mart by offering free shipping to all orders of $25 or more.
  • Comcast, Hewlett-Packard, and Office Depot are all reporting earnings on Tuesday, with Comcast down 0.41%, HP up 0.81%, and Office Depot up 2.33% in premarket trading.
  • At least 10 large banks are under investigation for rigging the precious metals market, with the Justice Department's antitrust division looking into the pricing of gold, silver, platinum, and precious metals.
  • Krispy Kreme is opening its 1,000th store, with the company giving away one free doughnut to the first 1,000 customers at each store on Tuesday.
  • The Greek government has taken another step toward locking in its four-month debt extension deal, with the European Commission stating that a list of Greek proposals for changes in the country's economy matches what the eurozone finance ministers want.
  • European stocks are mixed on Tuesday as Greece seeks to finalize a deal for its debt with the E.U. and investors await Yellen's comments on the Fed's plans.
  • Investors are eagerly awaiting the beginning of Yellen's Congressional testimony, with some commentators predicting that the Fed will raise interest rates in June, while others suggest it may be September.
  • The Fed will likely delay raising interest rates if the larger economy does not seem to be doing well, with Yellen's terminology and tone being closely parsed throughout the market.

Statistics:

  • U.S. stock futures are ticking up slightly ahead of Yellen's testimony, with the S&P 500 (SPY) expected to rise 0.03% to 4,960.97.
  • Home Depot reported a 36% increase in fourth-quarter profit, with net sales up 8.3% to $19.16 billion for the quarter.
  • Target is offering free shipping to all orders of $25 or more, while Amazon and Best Buy don't offer free shipping unless customers buy $35 worth of merchandise, and Wal-Mart requires a $50 purchase for free shipping.
  • At least 10 large banks are under investigation for rigging the precious metals market, with the Justice Department's antitrust division looking into the pricing of gold, silver, platinum, and precious metals.
  • Krispy Kreme now has stores in 24 countries and is giving away one free doughnut to the first 1,000 customers at each store on Tuesday.
  • The Greek government has taken another step toward locking in its four-month debt extension deal, with the European Commission stating that a list of Greek proposals for changes in the country's economy matches what the eurozone finance ministers want.

Sources:

  • TheStreet: "Stocks in Wait-and-See Mode Ahead of Yellen's Congressional Address" (http://www.thestreet.com/story/13055134/1/stocks-in-wait-and-see-mode-ahead-of-yellens-congressional-address.html)
  • Reuters: "US Fed's Yellen to testify before Congress on Tuesday" (http://www.reuters.com/article/2015/02/24/us-usa-fed-idUSKBN0LS0BD20150224)
  • TheWall Street Journal: "Big Banks Face Scrutiny Over Pricing of Metals" (http://www.wsj.com/articles/big-banks-face-scrutiny-over-pricing-of-metals-1424744801)
  • Fortune: "Target's Online Shipping Price War Aimed at Amazon" (http://fortune.com/2015/02/23/target-amazon-ecommerce/)
  • CNBC: "Big Banks Face Scrutiny Over Pricing of Metals" (http://www.cnbc.com/id/102449598)
  • Twitter: @Noticker (https://twitter.com/noticker)

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