You're watching...
John Canally, investment strategist and economist for LPL Financial, on the upcoming Fed announcement, the Greek election and this week’s market.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
I will between the Greek elections the G-20 summit -- -- -- meeting this Wednesday this week may have been most market moving events.
So -- expect from all this joining us now John finale EP an investment strategist for LPL financial John which one.
Or can you pick one that is most important to our markets here at home.
Four player -- the -- all of them all all the above.
I think that the next real big one would be the Fed tomorrow.
And the Fed has the ability to either be a positive for the market if they decide to do a full blown QE3.
Where they can really disappoint the market if they decide to do nothing -- was a big range of things they could do.
But I think -- those two extremes kind of set the boundaries.
Everything in between that might be less of a problem for the markets but -- the Fed just comes out with the same statement they did.
The -- they FOMC met -- meeting in April I think the market might react negatively to that.
But -- expecting them to announce some sort of stimulus program aren't yet Operation Twist ends on Thursday that's where the Fed was buying back mortgage backed securities that will end on Thursday.
The day before you're expecting to hear something aren't you.
Yes I mean at the minimum they're gonna extend Operation Twist -- operationally there they might have to.
Go out and purchase or sell some more although there.
Shorter dated treasury notes they've done that up to three years they might have been well before year's food do that's so I think at least don't do that -- stand Operation Twist.
And then I think -- positive surprise for the markets may be.
If they actually do announced some kind of balance sheet expansion so they could do both that they could do a little bit of Operation Twist to and they might -- won't do a little bit of balance sheet expansion to -- QE3 but.
You know if they didn't do that they do they could incur the wrath of politicians in Washington this is an election year and you know whatever the Fed does that everything in an election year it might draw some attention to -- -- -- about inflation these days.
-- thinking the Fed is less worried about inflation right now than they are about.
There -- other part of their dual mandate which is the full employment -- so I think together fed is always gonna talk that they're worried about inflation.
Lately though they've been acting like they're not and I think I would expect this week they're gonna act like they're not worried about inflation I that I think in general.
Inflation free will contain inflation expectations are relatively low yeah.
Lot of slack in the job market so not a lot of killing for inflation if you will but the Fed's got to be ready once that starts to -- -- respect.
We saw the most recent Consumer Price Index numbers are coming down right quickly we get an early glimpse of earning season this week we get FedEx on Tuesday -- -- on Thursday.
What are you expecting.
Well I think it's great news that we get those now we're we're gonna start at least see.
What kind of impact your assessment having.
On big global company so those two companies are big global companies they operate all over.
If we hear from them that the turmoil in Europe the slowdown in China is beginning to hit earnings I think that might.
Knock down earnings of expectations even a bit further than they already have been I typically what you get that in the in the two weeks before the beginning of the earning season.
Is generally a pick up a pretty positive.
The stock market you -- usually get pretty sizable gains -- the first two weeks after.
The beginning very -- you get pretty good gains in stocks that have he has so little bit more Dicey -- if it before we we do it's.
Day by day game giant now adelphia finances and thank you very much for -- an attack.
