Market Minute: All Eyes on the Fed this Week with Taper Talk in the Air

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News from and about the Federal Reserve is likely to drive the market this week. The Fed's policy-making Open Market Committee meets on Tuesday and Wednesday. The talk on Wall Street for the past few months has been about when Fed will begin to taper its $85 billion a month bond-buying program. Analysts say a decision to taper now could extend the market's recent decline.

July 14, 2011 - Washington, District of Columbia, U.S. - Federal Reserve Board Chairman BEN BERNANKE testifies before a Senate B
AlamyThis is likely to be Ben Bernanke's last FOMC meeting as Fed chairman.
And this is likely to be Ben Bernanke's last meeting as Fed chairman. The Senate is scheduled to vote this week on the nomination of current Vice Chairman Janet Yellin to replace him. There's also a possibility that President Obama will shortly nominate a successor for Yellin. The leading candidate is said to be Stanley Fischer, a well-regarded former chief economist at the World Bank who recently completed an eight-year stint as head of Israel's central bank. Fischer holds dual U.S. and Israeli citizenship.

Retailers are always a bit nervous at this time of year, and following two straight weekends of snowstorms across much of the nation, everyone from mom-and-pop store owners to giant chains have to be worried. But the weather could prove to have been a boon to Internet retailers, as many holiday shoppers had nothing to do this weekend but surf the web.

Speaking of holiday gifts, UPS (UPS) says today is its busiest pick-up day of the year. About 34 million packages will be picked-up -- and most of them will be delivered Tuesday.

Right before Friday's closing bell, reports surfaced that Sprint-Nextel (S) may be preparing a bid for T-Mobile (TMUS). A deal could be worth more than $20 billion, but it could face opposition from the Justice Department. Two years ago, antitrust regulators blocked AT&T (T) from acquiring T-Mobile from Deutsche Telekom in a bid that was valued at $39 billion.

Here on Wall Street, the Dow Jones industrial average (^DJI) , the Standard & Poor's 500 index (^GPSC) and the Nasdaq composite (^IXIC) all lost more than one percent last week.

Finally, two researchers at Yale have determined that charitable contributions actually go down when charities offer gifts such as tote bags or mugs. However, they tell the Wall Street Journal that those gifts may lead to more giving and more loyalty down the road.

-Produced by Drew Trachtenberg.


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11 Comments

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betty_brock

I'm Evan / somey / notruthseek.
The economy is really bleak.
Obama is ruining the middle class.
Do I still love him? Bet your a--.

December 16 2013 at 8:03 PM Report abuse -2 rate up rate down Reply
betty_brock

FIRE THE FED

December 16 2013 at 7:42 PM Report abuse rate up rate down Reply
jwmgrand

Everybody has become way to fat ........ especially the price of securities ... we wont name names but sandwich shops, elite retailers , computer companies , etc ... are all screaming ( oversold ) ..and I mean... way oversold .... its like the bar patron that has been overserved ... the Fed is going to walk in and say .... we cant tolerate his behavior ..or cover for him any longer ( just cut him off ) ....... expect huge sparks !!! and a flight to gold !

December 16 2013 at 6:49 PM Report abuse -4 rate up rate down Reply
obamasam0r0ntoo

theycallmeroy3
Could I interest you in a cronut filled with Johnnie Walker Blue?******** No but you could interest me in a BOTTLE filled with JW Blue…… e-mail me, I'll give you my mailing address…HO HO HO….. Merry Christmas….. Is that any longer politically correct ? Santa is dead. He died from Obamadon'tcare….

December 16 2013 at 4:38 PM Report abuse -3 rate up rate down Reply
Iselin007

A taper would expose how bad this economy is. The thoughtless acts that changed the job market has destabilized the foundation of this country. Trillions in debt yet no one to pay.

December 16 2013 at 3:52 PM Report abuse rate up rate down Reply
Iselin007

Get ready for another round of job losses as they push for ther Aisian/Pacific Trade Deal.

December 16 2013 at 3:22 PM Report abuse rate up rate down Reply
ranewbould

Watch the 300 point drop on Wednesday.

December 16 2013 at 3:09 PM Report abuse rate up rate down Reply
1 reply to ranewbould's comment
Iselin007

A mear 300 points is only petty cash when the Markets are this high to the 1%.

December 16 2013 at 3:34 PM Report abuse +3 rate up rate down Reply
k4jlp

Taper talk=higher interest rates for the average Joe that needs credit. If banks stop getting their money money for free, they will make it in other ways. Don't worry about Corporate America's profits, nothing to see here, move along....(the Feds say)

December 16 2013 at 3:04 PM Report abuse +3 rate up rate down Reply
1 reply to k4jlp's comment
Iselin007

Soon as they taper the declining classes will take the greatest hit. You can't even shop at the Luxury malls now with out being put to sleep by some hoodlums from Newark NJ. Invest away but the investments won't do you any good if your cut down by some thugs looking to joy ride on your set of luxury wheels.

December 16 2013 at 3:30 PM Report abuse +1 rate up rate down Reply
Mike

It will make the market go back to whatever it\'s normal level should be....not this artificial prop up we have now.

December 16 2013 at 2:40 PM Report abuse +7 rate up rate down Reply
1 reply to Mike's comment
Iselin007

Those that will take their cut of the highs will do so because they know when to get out. After the season the retail drops. It will be interesting to see how much is returned or resold Online. You can always move to NJ an fork over your assets on the crap table or lose it Online. Think of it as shovel ready jobs with a make over!

December 16 2013 at 4:06 PM Report abuse +1 rate up rate down Reply
stevendy1

all good things for the wealthy must surely come to an end--time for the middle class now.

December 16 2013 at 12:46 PM Report abuse +1 rate up rate down Reply
1 reply to stevendy1's comment
obamasam0r0ntoo

The middle class has gotten fantastically wealthier during the past 30 + years....largely because of the net benefits of global trade (with a healthy dose of irresponsible borrowing thrown in as well). Even the bottom of the income scale has air conditioning, multiple TV’s, Cell phones, multiple cars, and lives in twice the living space as their European counterpart. Throughout history only the wealthy could afford to be fat. Now that everyone in the developed world can be fat. Wasting resources is the new insignia of wealth.

December 16 2013 at 2:18 PM Report abuse -2 rate up rate down Reply