Trading Volume To Shrink This Summer, June Rate Hike A Remote Possibility – Economic Highlights

Fed Vice Chair Stanley Fischer over the weekend said it was “misleading” for investors and economists put too much emphasis on when the initial interest rate raise will be; much more prudent would be to consider where the short-term rate will be over the next few years. Fischer indicated the short-term rate will reach 3.25 – 4 percent over the next 3 – 4 years. That said, he did not give any indication that the Fed was looking to push back the initial rate rise past its September session.

One actionable piece of news for stocks revolves around the agreed-upon merger between Charter Communications (CHTR) and Time Warner Cable (TWC). The $55 billion deal in both cash and stock must still face possible regulatory hurdles, and if memory serves, it was these regulatory threats which dissolved the proposed deal between TWC and Comcast (CMCSA).

With the final companies reporting quarterly earnings coming through this week, AutoZone (AZO) posted an earnings beat on its Q3 results before the bell today. The auto parts retailer reported improved same-store sales year over year.

April Durable Goods came in at -0.5 percent — exactly in-line with expectations. This follows a revised-higher March durable good number of +5.1 percent (originally reported at 4 percent). Ex-transportation, durable goods reached +0.5 percent — non-defense, ex-aircraft was +1.0 percent, indicating the importance of the sale of a few planes from quarter to quarter.