Money Minute: Markets Await Fed Decision; Yahoo to Follow Apple's Fall?

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It's Fed day, and that might add to the jitters of an already volatile market.

The Federal Reserve's policymaking arm wraps up a two-day meeting. The big unknown: will it continue to cut back on the amount of bonds it buys each month to stimulate the economy. It announced in December that it would start that process this month by trimming -- buying $75 billion worth instead of the $85 billion it had been buying each month. Word from the Fed comes at 2 p.m. Eastern time, so keep an eye on the market around then.

Another interesting note: this is Ben Bernanke's final meeting at the helm of the Fed. Janet Yellen takes over next week.

Shares of Apple (AAPL) tumbled 8 percent Tuesday on disappointing results.
Investors could switch the ire to Yahoo (YHOO) today. Its net missed expectations and ad revenue was weak. The company also issued a disappointing outlook for the current quarter. Yahoo shareholders should be a little bit forgiving though. The stock is up nearly 90 percent over the past year as investors put their faith in CEO Marissa Mayer, but her honeymoon period may be coming to an end.

The Dow Jones industrial average (^DJI) snapped a five-day losing streak Tuesday. Blue chips gained 90 points, the Standard & Poor's 500 index (^GPSC) rose 11 and the Nasdaq composite (^IXIC) added 14.

President Obama wants to help workers save for retirement, even if they don't have access to IRA accounts at their jobs. In his State of the Union address last night, the President called for the establishment of a new "starter" account, that he's dubbed a MyRA. Workers would be able to contribute part of the wages into a government guaranteed savings account. Only half of the American workforce has access to company sponsored retirement accounts right now.

-Produced by Drew Trachtenberg.


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16 Comments

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Iselin007

Imagine if the middle class hadn\'t been in decline the money that would of been earned and saved would of been larger than their retirement plans could of ever achieved in their life time. You wouldn\'t have to worry about not having a plan your pay check would of automatically taken care of it.

January 29 2014 at 6:03 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
majorsujet

Wishful thinking.

January 30 2014 at 10:48 AM Report abuse rate up rate down Reply
jhrooney

Good bye and good riddenance Benny

January 29 2014 at 4:32 PM Report abuse rate up rate down Reply
1 reply to jhrooney's comment
Iselin007

He could go on talk show circuit like Greenspan .

January 29 2014 at 5:46 PM Report abuse rate up rate down Reply
kolblh

A start. Maybe, hopefully, us non Wall Street investors, will get a little help in CD's and money accounts. I, for one, got killed in the market twice and have no desire to try again.

January 29 2014 at 4:13 PM Report abuse +3 rate up rate down Reply
Iselin007

Humpty Dumpty sat on the wall. Everybody sing!

January 29 2014 at 4:10 PM Report abuse +3 rate up rate down Reply
pm0501

LOL... Just alst week I ran into a post from a guy bragging about what a great job Obama has done to bring the DOW up into 16,000 terretory. That didn't last long now did it? Must be an uptick from that wonderful SOTU speech Tuesaday night.

January 29 2014 at 4:09 PM Report abuse rate up rate down Reply
betty_brock

Dictator: One who holds complete autocratic control.

Obama, "I will make all decisions without input from Congress."

Same thing ( yes, this is on subject)

January 29 2014 at 3:13 PM Report abuse +1 rate up rate down Reply
Iselin007

Time for a History lesson:
When I was a small child in the 1950's my mom enter me into the Easter hat contest at the Easter Parade. My mom had put flowers in the hat she made me wear. The Judge was the famous Mayor of Woodbridge Township NJ the one and only Walter Zirpolo. I won a ribbon which the Great Walter Zirpolo gave me. Now if you don't remember who this great man was because you were too young I will tell you. Mayor Zirpolo and Jacks were part of the Texas Eastern Pipeline Scandal. All I know is Mr Zirpolo shook my hand and gave me a ribbon.

January 29 2014 at 2:54 PM Report abuse rate up rate down Reply
Iselin007

Do you think if they tie the minimum wage to the inflation of the DOW average it would help the middle class? Sure the DOW might be down now but it will rise again an so should wages which would keep the economy humming.

January 29 2014 at 2:10 PM Report abuse rate up rate down Reply
yurday6

This is all fixed for the Fed meeting, the stocks are down so they have another excuse not to stop printing money and not to raise interest rates. The unemployment numbers are fudged the same way.

January 29 2014 at 1:52 PM Report abuse +3 rate up rate down Reply
1 reply to yurday6's comment
Iselin007

yurday6
This is all fixed for the Fed meeting, the stocks are down so they have another excuse not to stop printing money and not to raise interest rates. The unemployment numbers are fudged the same way.

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If you have downloaded the monthly BLS employment reports you will notice the working age population is age 16 and up.Those not institutionalized are able to join the labor force. If there are 91.8 million not in the laborforce due to the lack luster job market along with 10.4 million unemployed not working it shines the truth on the the real unemployment rate.

January 29 2014 at 2:27 PM Report abuse +1 rate up rate down Reply
Iselin007

Amazing they are waiting for a Fed decision on taper as if that matters as much as the 1% pillaging the economy for 3 decades.

January 29 2014 at 1:26 PM Report abuse +1 rate up rate down Reply