#beigebook

Federal Reserve rate hike probability is rising.

The last few weeks has seen the US economy produce some very upbeat market data; increasing CPI, PMI. This has caused investors to re-evaluate the possibility of a rate hike happening this year.

The US durable goods orders, personal spending released last week beat expectations. The ADP report, which was released today showed that the private sector job growth surged in January. This report…

The last few days have seen steep declines in the major equity indices.  However, it looks like the futures are points up this morning.  This is most likely just a break in the clouds before the storm resumes.  Earnings season is starting up and if numbers don't meet analyst estimate, we can see some individual stocks drop very hard.

Nokia released a "profit warning" this morning.  They see their profits missing their forecast significantly to the downside.  The result is a large drop in NOK before the market opens.

There are a number of data points coming out today, but none more important than the Fed's Beige Book at 2:00pm.  The formal name of this report gives a little more insight as to what it contains, Summary of Commentary on Current Economic Conditions.  The report will give some more insight as to what Bernanke and the Fed see coming for the economy and the sentiment of the banks.