Page 5 - Rate Environment News Today

Increases at some point. thats more of a fluid reason than the saving routes on cds. for shareholders, neil, lastly who own bank stocks, they may see a long-term boost in value because banks do well in a higher rate environment. we know tomorrow well hear from four key banks. j.p. morgan chase, wells fargo, pnc financial. analysts will watch for details about loan growth. thats a key metric. >> neil: thanks, deidra. 1,400 points in two days. 5% of the dow jones. nothing like in 1987 we lost 508 ...

Crazy but its up three times, you know, 25,000. brian: so 25,000. what does that tell you about our economy? >> the economy is very strong, but i think there are some concerns. because we have never been in an environment rising rate environment, huge debt and deficit a protectionist kind of rhetoric and then more importantly this type of dysfunction in washington. brian: therwashington.there are concerns right now but the market feels really good. brian: why is confidence at such a high? >> its...

>> neil: what struck me as interesting, all volatility. the swings that heretofore we havent seen. he said that wont stop me from rate hikes down the road. what did you make of that? >> the fed has been very transparent. that continues. gary is right about this. whoever is coming in was going to be in a rising rate environment. the economy is doing so well, the fed says he may raise them more than expected. that is a very good thing but the market is trying to weigh how much of a negative it is ...

Rates faster than expected. history has shown us when you have a rising rate environment, especially with rates moving faster than expected, that can have an impact on consumer spending. so that of course is a big concern. despite the rebound were seeing on wall street today, yes, the dow is up about 200 points, nasdaq and s&p 500 higher as well, were still witnessing one of the most volatile weeks in wall street history with the dow down about 9% just this week. again, on those concerns not jus...

Dont. experience counts. i think right now were actually moving away from that. theres more analytics. >> neil: and the algorithms are trading. and a push of a button and accentuates the wild swings. >> the higher highs and lower lows. the pendulum swings to the extreme. we had a 1,200 point swing. weve had that a few times other than one direction. so i think were in a new normal and this new normal this year will be high volatility. because the fact is, at the end of the day, we dont know wher...

You can see in the big picture, all 30 of the dow industrials are in the negative on the session. >> let me make a point here that is important. you would expect banks in a rising rate environment of higher inflation to do well. because thats good news for their bottom lines. youre not seeing that today. thats really interesting that companies like goldman sachs, j.p. morgan chase, all of the citi group, the big banks now struggling here. you can see visa down. all of these companies struggling ...

Were going to likely see some selling abroad. when i asked about tomorrow, they said likely to see selling in the morning. at that point did it feel like capitulation? we had heavier volume. we sold off 1,100 points last week. another 1,100 points today. if you loved them where they were, you were looking for a place to get in, you get in. ultimately theres the nervousness when we cross the 1,000 point mark. it was so fast. 3:11, 1,600. it was fast and furious. they picked them back up. thats th...

Going forward. higher mortgage rates. will that slow the market at all and not a lot of supply. people cant get in to housing. wells fargo. the fake account scandal revealed six months ago. the bank is struggling to win back customers. credit card applications plunged 55%. customers opened 43% fewer checking accounts. the head of community banking summing it up like this. we have more work to do. wells fargo stock dropped on the news, but look at this. this is the past six months. it has done we...

Half a percent. there is simply no return on investments in the low rate environment. if you want to knockout our holiday shopping amazon is selling 6 packs of the tablet called the fire. it is meant for reading books and watching movies. if you buy five of them they will throw in a sixth fire for free. if you are flying united you may never have to worry about a weather delay again. they want the planes to be more round trip. it means there will be less crisscrossing the country. the planes wil...

Dramatically, very quickly. >> reporter: ironically, an improving economy is to blame. >> unemployment is down. the stock market is doing well. median house prices are up. people are feeling better, out there buying again so the economy does well, you will see a rising rate environment. >> reporter: you will see it in your monthly payment at 3.5% on a $250,000 home with 20% down, $898. same 30-year fixed mortgage over $1,000 at 4.5%, $115 more a month or more than $1,300 a year. down payment, cr...