Fed Hires Bailout Baron

Markets closed the day mixed on slightly lower than average volume. The Dow led the day in gains, closing up 0.16%, The index closed up 27.73 points, and ended the day at 17,758.21. The NASDAQ ended the day down, losing 12.06 points to close the trading day at 5,083.24. The S&P 500 closed up to 2,081.72, gaining 3.14 points.

International markets were mixed as well. In Europe, Germany’s DAX gained 17 points. London’s FTSE was down by 20. In France, the CAC gained just a point. The trends held across Asia, where the Nikkei held steady. Hong Kong’s Hang Seng lost 325.
In Australia, the ASX gained 12 points.

Darden Restaurants Down 10%

The slowdown in consumer spending showed itself in Darden Restaurant’s (DRI) poor earnings showing. The company lost 10% on the day, as investors rushed to sell off Darden’s stock. The company lost 6.68 points to close the day at $54.68.

Fed Hires Bailout Baron

The Federal Reserve just hired the architect of the big bank bailout. Neel Kashkari, who oversaw the government’s bailout attempts, found a job at the Federal Reserve Bank. The hire was controversial because of the bailout banker’s role in the bailout.

Kashkari is infamous because of his role in setting the rates of TARP, as well as a run for California governor. He retired from the government shortly after the TARP program was inacted, then spent a few years working for PIMCO. Neel Kashkari previously worked for Goldman Sachs (GS) prior to the financial crisis.

The Minneapolis Fed declined to let Kashkari comment on his new position.

Oil Falls 1% on the Day

The price of oil fell by 1% today, falling to $43.72 per barrel of crude. Crude oil prices fell by 7.84% on the month, although it didn’t drag the Energy Minerals sector down with it. The price at the pump is currently falling, due to a supply glut that’s keeping prices low.

Crude oil prices have been trading downward since the start of summer. Oil production companies are down, but other energy producers are up on rising natural gas prices, as well as coal. Commodities prices are expected to be low well into the Christmas season, and could be one reason behind a blockbuster winter shopping season.
Published on Nov 10, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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