U.S. Day Ahead: Investors look optimistic for 2013
Tuesday, January 01, 2013 - 02:24
Dec 31 - Despite the wrangling in Washington over the fiscal cliff, there seems to be a new sense of optimism going into the New Year.
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The final -- -- for a while. Yes and 500 rallied one point 7%. Fits and -- with signs a deal on the fiscal cliff is drawing ever closer. Traders don't get back to work after New Year's Day and despite the wrangling in Washington there seems to be a new sense of optimism and equity market's going to 2013. The NASDAQ SP 500 and -- also double digit gains this year doing much better than twenty mile. Voters of the top money matters about where to chase higher yields earned three suggestions first avoid cash. Savings accounts and money markets yielding lesson for inflation of 2%. -- away from quality. Junk bond yields are hovering around 6%. Well above one point 7% of the ten year -- and check out mortgage backed securities. Defense spending forty billion dollars a month on them to lower rates. Meantime your big -- to crunch and Wednesday will be the latest ISM manufacturing figures. I -- as -- -- got to 51 in December after sinking to a forty month low last month and anything above 52 or below 49 point five would be surprising. The gains partly thanks to consumers replacing vehicles damaged by super storms -- despite that 51 is a mediocre reading. Yet another sign manufacturing is barely growing I watch -- expect heavy industries in neutral until the second quarter. Also pay attention -- fed minutes from the last meeting in a surprise move -- -- to stay near zero until unemployment fell to at least six and half percent. Investors want to know there were any other economic targets on the table and also there's still to expand its monthly 85 billion dollar bond purchasing program. It's already spent 2.3 trillion dollars in the last two rounds QB. Now -- -- fiscal cliff angles make sure to follow us on Twitter Reuters Insider. Catcher interviews with top market movers -- Reuters TV. If you're tired of all the DC drama about her college football special the players of course will -- it. But for the school's head coaches and the bulls themselves it can mean millions of dollars in mostly. Tax free money. We go behind them. I'm Fred Katayama this is --
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