Charles Payne's Market Commentary

Afternoon Note

Forgone Conclusion

By Charles Payne, CEO & Principal Analyst
10/30/2019 1:32 PM

Central banks around the world have been on a race to the bottom. While our own Federal Reserve got in the mix late, they are catching up. It’s a forgone conclusion that the Fed will cut rates today, but everyone is anxious over next steps.

Today, we got a better than expected GDP report, but one that also continues a declining trend. The consumer is strong, but things like subprime auto delinquencies have some waving yellow flags. There are members of the Fed that believe things are fine, and others that believe it would be a mistake not to be preemptive to fight drifting inflation and a couple of cracks in the consumer. Moreover, the lack of business investment has many worried.

While it’s true, rates are low enough and businesses are mostly on strike, the reversal in rates this year has sparked a revival in U.S. housing. Should the Fed preserve the move?

Name of interest rate	country/region	current rate	direction	previous rate	change
American interest rate FED	United States	2.000 %		2.250 %	09-18-2019
Australian interest rate RBA	Australia	0.750 %		1.000 %	10-01-2019
Banco Central interest rate	Chile	1.750 %		2.000 %	10-23-2019
Bank of Korea interest rate	South Korea	1.250 %		1.500 %	10-16-2019
Brazilian interest rate BACEN	Brazil	5.500 %		6.000 %	09-18-2019
British interest rate BoE	Great Britain	0.750 %		0.500 %	08-02-2018
Canadian interest rate BOC	Canada	1.750 %		1.500 %	10-24-2018
Chinese interest rate PBC	China	4.200 %		4.250 %	09-20-2019
Czech interest rate CNB	Czech Republic	2.000 %		1.750 %	05-02-2019
Danish interest rate	Denmark	0.050 %		0.200 %	01-19-2015
European interest rate ECB	Europe	0.000 %		0.050 %	03-10-2016
Hungarian interest rate	Hungary	0.900 %		1.050 %	05-24-2016
Indian interest rate RBI	India	5.150 %		5.400 %	10-04-2019
Indonesian interest rate BI	Indonesia	6.500 %		6.750 %	06-16-2016
Israeli interest rate BOI	Israel	0.250 %		0.100 %	11-26-2018
Japanese interest rate	Japan	-0.100 %		0.000 %	02-01-2016
Mexican interest rate	Mexico	7.750 %		8.000 %	09-26-2019
New Zealand interest rate	New Zealand	1.000 %		1.500 %	08-07-2019
Norwegian interest rate	Norway	1.500 %		1.250 %	09-19-2019
Polish interest rate	Poland	1.500 %		2.000 %	03-04-2015
Russian interest rate CBR	Russia	6.500 %		7.000 %	10-25-2019
Saudi Arabian interest rate	Saudi Arabia	2.750 %		3.000 %	07-31-2019
South African interest rate SARB	South Africa	6.500 %		6.750 %	07-18-2019
Swedish interest rate	Sweden	-0.250 %		-0.500 %	12-20-2018
Swiss interest rate SNB	Switzerland	-0.750 %		-0.500 %	01-15-2015
Turkish interest rate CBRT	Turkey	14.000 %		16.500 %	10-24-2019

Key Earnings Reports

In addition to the Fed, investors are looking ahead to big earnings releases after the close:

Apple (AAPL)

Apple usually beats consensus, but the reaction has been harder to pin down since that 4Q 2018 report where management announced it would stop breaking out key iPhone metrics while it lowered guidance.

Talk about anxiety, Apple shares are up 54% this year but unchanged over the past five sessions.

Facebook (FB)

FB has missed consensus by miles the last two times the company released its financials, which sent the shares down five percent in the following week last time.

The stock is up 43% for the year, and +0.60% in the past five days.

Comments

When in the course of human events.. does anyone listen, or even do anything?

Gerald Poe on 10/30/2019 2:01:21 PM

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