THE BIG PICTURE |
Updated: 06-May-13 Analysis of major issues impacting the financial markets.
Fed Policy as Easy as 1-2-3 It is said that a picture is worth a thousand words. In the case of the Federal Reserve's monetary policy, though, some pictures are worth $3 trillion and perhaps much more. How do we know? The Fed has said as much in its policy directives, which remain long on promises of policy support because the economic data continue to show the Fed is falling short of meeting its dual mandate of maximum employment and price stability. Three items in particular last week exposed that shortcoming: The PCE Price Index for March, which showed inflation rising just 1.0% year-over-year The latest policy directive from the FOMC, which reiterated the Fed's intent to purchase $40 bln of agency MBS and $45 bln of longer-term Treasury securities per month in an effort to support a stronger economic recovery; and The 7.5% unemployment rate for April Several weeks ago in a piece we labeled, Fed Up, we decried the overanalysis that is commonplace on Fed days. In that piece, we provided the reminder that...
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In cases where the release is a revision to an earlier estimate, as
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last actual refers to the preliminary estimate for the same period.
After a report is released, the Prior column reflects the prior figure
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16:30 ET. Trading Impact Briefing.com’s opinion of the trading impact of this particular release.
Briefing.com Consensus estimate provided by Retail Metrics.
Price Reaction is
the percentage price change of the stock on the
first day of trading following the release of
Same Store Sales. The purpose of this data point
is to identify the price sensitivity of a stock
to its monthly same store sales report.
whether company issued upside, downside, in-line
or mixed revenue or EPS guidance in this month's
same store sales release.