Art Hogan Rates Quotations

Last week energy and interest rates were the focus on Wall Street. It will probably be the same this week, as well as a few mid-quarter updates,

We have extremely large concerns about inflation, high interest rates and high energy prices, ... There is great concern that we don't know how much earnings growth will decelerate over the next two quarters.

Concerns about higher interest rates and the yield on the 10-year note may keep stocks on the south side again this morning. The higher yield ... acts as a tax on corporations, and it may also attract money to the bond markets from equities.

This may be a very volatile trading session. The market wants good numbers, but an exceedingly good report may lead to further rates increases, and that's not good for stocks. On the other hand, a bad report on top of disappointing earnings, could spark another sell-off.

The retail stores are doing well. Consumers remain confident, continue to be out there spending their money, ... A lot of money was created with lower interest rates and refinancing -- things of that nature. So, consumer confidence has stayed very high and retail stores, that have actually done it right, have been doing pretty well.

The Fed said rates are going higher, which was no surprise. But when you're in an interest rate rising environment, all the smatterings of what would be considered good news look like a confirmation that rates will rise.

The Fed said rates are going higher, which was no surprise, ... But when you're in an interest rate rising environment, all the smatterings of what would be considered good news look like a confirmation that rates will rise.

The Fed cuts rates because they're worried about the economy, ... They're not as worried because they only cut rates by 25 basis points, so things are getting better and there's stabilization.

I'm thinking the Fed will leave the rates unchanged, ... We've ramped up pretty higher into this meeting and my concern is the psychological letdown if the rhetoric remains strong.

The concern (about ECB rates) is that the firmness we've been seeing in the dollar is because they were raising rates and the Europeans weren't, ... If they start raising rates, that firmness evaporates, and our investments don't look as attractive as they did last week.