If it seems like not much happened in the U.S. stock market in the first week of May 2016, that's because not much happened. The S&P 500 pretty much continued to follow the trajectory it has been following, tracking along with the path associated with investors being mostly focused on 2016-Q4.
Now, for the sake of documenting the news that barely moved the market, at least as measured by its daily closing values, here are the headlines of note from Week 1 oof May 2016.
- 2 May 2016:
- Fed may need more powers to support securities firms during crises: Dudley - This news actually came out on Sunday, 1 May 2016. Dudley's proposal would, in the case that liquidity in the markets were to unexpectedly dry up, provide a method of bailing out financial firms who would be at risk, and whose balance sheets would put other firms at risk. What Dudley perhaps does not very well appreciate is that once the Fed opens Pandora's box like this, it will need to keep it open. Just ask any central bank that has taken the path of ZIRP, NIRP and QE, which have all contributed to the increased dangers of such limited liquidity.
- Wall St. rebounds; Nasdaq breaks seven-day losing run
- 3 May 2016:
- Futures lower after weak Chinese economic data
- Fed's Lockhart: Two rate hikes this year 'certainly possible', flags Brexit risk - In just over a month's time, Lockhart has officially reduced his projection of three rate hikes in 2016 to two! Meanwhile, he's concerned about potential repercussions if Britain opts to leave the E.U., which he cites as a factor that might affect his new version of the Fed's plans to hike rates twice in 2016.
- Wall St. loses ground on growth fears, oil slide
- 4 May 2016:
- Wall St. lower as tepid data adds to growth worries
- Stocks retreat a second day on growth worries, copper slips - recurring headlines like this will eventually prompt the Fed's Lockhart to trim back his rate hike projects to just one!
- 5 May 2016:
- U.S., Europe shares rise with oil prices; dollar gains
- Fed's Bullard says global headwinds appear to have waned - Bullard's comments are mainly remarkable because it is the first time a senior Fed official has said that they don't expect any significant negative repercussions should the U.K. vote to exit the European Union - pretty much contradicting what the Fed's Lockhart was going on about earlier in the week....
- Wall Street ends little changed ahead of jobs report
- 6 May 2016:
- Wall Street rebounds to close higher after jobs report - ZeroHedge has a funny take on the market's recent reactions to the monthly jobs reports.
- Dollar edges higher as Fed's Dudley offsets weak U.S. jobs data - the Fed's jawboning at its finest, overshadowing his other comments suggesting that it would be "reasonable" to expect two rate hikes in 2016. To give you an idea of how much Dudley's thoughts are really worth, we think it would be reasonable for Fred Willard to play the Fed's Dennis Lockhart in the upcoming over-the-top dramatization of Money for Nothing: Inside the Federal Reserve.
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