U.S. futures rose on Sunday, Oct. 15, after comments by Federal Reserve Chair Janet Yellen bolster speculation that a third rate hike is in the works.
Dow Jones Industrial Average futures rose 0.04% on Sunday, below the S&P 500's 0.07% increase and the Nasdaq's 0.09% increase. The euro fell 0.05% against the dollar to $1.1814 Sunday, while the pound was up 0.06% against the dollar to $1.3293. The dollar also rose 0.05% against the yen.
Despite persistently low inflation, the U.S. economy is in strong shape, Federal Reserve Chair Janet Yellen on Sunday, hinting that the Fed's third interest rate hike this year could come in December as many predict.
"Economic activity in the United States has been growing moderately so far this year, and the labor market has continued to strengthen," Yellen said, noting that the impact from hurricanes is probably ephemeral. "The ongoing strength of the economy will warrant gradual increases" in interest rates, she added.
The Fed raised short-term rates in March and June and expects another increase this year, three in 2018, two in 2019 and one in 2020.
Yellen, along with European Central Bank President Mario Draghi and Bank of England Governor Mark Carney, said at the International Monetary Fund's annual meetings that inflation should start to accelerate soon.
Yellen's tenure as chair ends in February, and President Donald Trump has indicated that he's considering reappointing her, in addition to other candidates like Stanford economist John Taylor, Fed Board of Governors member Jerome Powell, former member Kevin Warsh and Trump economic adviser Gary Cohn.
Trump this week announced two executive orders on healthcare to dismantle the Affordable Care Act's cost-sharing reduction subsidies. His efforts to replace his predecessor's signature legislative achievement have been stymied by infighting in the Republican Party.
The move, he noted, prompted a fall in healthcare stocks, including insurers Centene Corp. (CNC) , Molina Healthcare Inc. (MOH) and Anthem Inc. (ANTM) and providers Acadia Healthcare Co. Inc. (ACHC) and Tenet Healthcare Corp. (THC) , which all fell at least 3%.
Health Insurance stocks, which have gone through the roof during the ObamaCare years, plunged yesterday after I ended their Dems windfall!— Donald J. Trump (@realDonaldTrump) October 14, 2017
In Austria, the conservative People's Party (OVP) gained about 31% of seats in the country's parliament. OVP is led by 31-year-old Sebastian Kurz, but with only a plurality of the vote, the party will need to form a coalition to govern. OVP was part of a coalition with Chancellor Christian Kern until May.
An immigration hard-liner, Kurz called for "a new political style in our country."
Twin bombings in the Somalian capital of Mogadishu killed at least 276 this weekend, the country's information minister said.
Earnings season heats up this week, with Netflix Inc. (NFLX) reporting earnings on Monday, CSX Corp. (CSX) , Goldman Sachs Group Inc. (GS) , Harley-Davidson Inc. (HOG) , Johnson & Johnson (JNJ) , Progressive Corp. (PGR) and UnitedHealth Group Inc. (UNH) on Tuesday; Alcoa Corp. (AA) , American Express Co. (AXP) and U.S. Bancorp (USB) on Wednesday; Alliance Data Systems Corp. (ADS) , AthenaHealth Inc. (ATHN) , Dover Corp. (DOV) , KeyCorp (KEY) , Philip Morris International Inc. (PM) and Verizon Communications Inc. (VZ) on Thursday; and General Electric Co. (GE) , Kansas City Southern (KSU) and Schlumberger Ltd. (SLB) on Friday.
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