[video] Markets Pause, Wait for Fed Decision
The video this transcript is based on appeared on December 18.
NEW YORK (TheStreet) -- Trading volume is light as investors are waiting to see if the Federal Reserve will announce a pullback from quantitative easing today.
I'm Debra Borchardt and this is your mid-day market update. Well for nowwe are in the green territory in the DOW and the S&P 500 both trading higher, however the Nasdaq is a little bit lower today. But really what's happening obviously is everybody's waiting for the Fed, there's of course a lot of discussion about whether they're going to announce any tapering today or tomorrow or even if it's gonna happen in 2014. Buying is very low ahead of this announcement. Joining me now is Alan Valdez of DME Securities. So Alan, you know lots of debate, a lot of people missed on the whole September 18th call where they thought they were gonna taper then or make some kind of announcement. So everybody's very leery about saying anything about this week.
Yeah, you know it's really a coin to us. I mean if you look at the numbers, some of the numbers have been good, order numbers have been moving in the right direction. Unemployment 200,000, still a far cry from say the regular covering when we were doing two million a month, but still it's trending in the right direction. My belief is that you know they will cut, it's no t a matter of if, it's a matter of when. So they are gonna start cutting back, I don't see it though til March, and I think couple reasons: one, the budget, still a little flux there, I mean it looks like it's gonna pass but it hasn't yet. Miss Yellen confirms later this week so she's not even confirmed. I think Bernanke will defer to Miss Yellen. And so I think her first chance to make a move would probably be late February or early March. So I think that's what you're gonna see. But most of all it's the numbers that trouble me, they're not that conclusive where you know, yeah, the economy's on sound, sound footing. Because if, you mentioned early before we started speaking, that, you know, if you look at the housing numbers say glance are great, but if you look into revisions from last month and a month before, they're not that good at all.
Right, as Alan's saying, when you do you look at those housing numbers the headline looks great but when you drill down the revisions were substantial, and so makes November stick out like a sore thumb. I would expect those are gonna get revised down as well. We will keep you updated of course on any decision and word out of the Fed. That's Alan Valdes from DME Securities and I'm Debra Borchardt with TheStreet.
Written by Debra Borchardt in New York.
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