According to New York Times, Apple will be replacing AT&T on Saturday, March 18th. Apple is now one of highest valued companies whose market capitalization of $744 billion (which approximates the GDP of Saudi Arabia). Analyst predicts that it will soon become the world’s first trillion-dollar company.The company will also be added to the Dow Jones industrial average next month. With Apple added to the index, many investors will compete to buy the stock.
Meanwhile, the U.S stock overall fell. On the other hand, the job market is faring better than forecasted (I believe David posted about this in his blog). These two trends are fueling the speculation of interest rake hike. From its interview with Chad Morganlander, the manager at St. Louis-based Stifel, Nicolaus & Co., Bloomberg reports that investors are pretty confident about the raise. I know other students have been posting about this topic in their blog posts as well. As Fed will be meting on March 17th (a day before Apple’s replacement of AT&T) and we will have to keep an eye on what numbers the bank will give.
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See my blog post at Autos and Economics, done as a potential column in a magazine. I’m not a professional Fed watcher, who reads each and every speech and interview of the governors and regional Fed presidents. How many stand as concerned about wage increases rather than headline unemployment? My hunch is most, including Yellen — and Yellen tolerates dissent, which means that the minority who want to raise rates now are merely that, a minority. Bernanke very much wanted consensus, and to the extent that the Fed presidents understood that, that meant that those least flexible had exaggerated influence.
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