Nasdaq Case Study

Over the past few years oil prices have been dropping. According to the U.S. Energy Information Administration (eig.gov), a barrel of oil cost $86.07 on October 20, 2013. As of October 20, 2015 a barrel of oil

The federal reserve has raised interest rates five times in less then twelve months, and the pervious raises are just barely beginning to take effect. The previous raises averaged around a quarter percentage point, and since these raises failed to slow the economy, Greenspan, unable to take anymore chances doubled the previous with a promise of more to come.

After the economy hit a slowdown in the first quarter of 2015, the US economy has likely sped up in the second quarter. The labor and real estate markets are staying steadily on their recovery paths and should let the Federal Reserve,

The current sources of fuel for gasoline and diesel vehicles are limited to gasoline, diesel, and biodiesel fuel. As of October 18, 2010, the average price for regular grade gasoline was $2.834 per gallon while the average price for diesel was $3.07 per gallon. Only the biodiesel fuel labeled B2, B5, and B20 can be used in a standard diesel vehicle without engine modifications. The average for B20 fuel mirrors the price of standard diesel fuel at $3.07 per gallon.

The health of the current U.S. economy appears to be growing gradually. The second quarter real GDP growth was 3.7% and the unemployment rate declined to 5.3%. The U.S Federal Reserve (Fed) is expected to raise interest rates in the near future when it sees clear signs of strong economic growth and improvements in the job market.

The US economy contracted at an annualized rate of 2.1 percent in the first quarter, as inclement weather weighed on output in virtually every sector of the economy.

To begin, The Federal Reserve System opted to raise interest rates that were placed near zero years ago in order to aid the economy’s growth and prevent inflation from exceeding the target number. Several factors including: the five percent drop in the unemployment rate, and the increase in wages, and the outlook on future inflation contributed to the Federal Reserve’s decision take this action. However, the increase in interest rates in December has generated mixed results, and it appeared the Federal Reserve would announce the interest rates were going to increase again. Instead, Janet Yellen, the chairman of the Federal Reserve, announced that there were better days ahead for the economy, and a slow and careful approach to future increases in the interest rate would serve the economy best, ensuring the growth is maintained. Although the interest rates remained the same early in 2016, they are expected to increase during the June meeting of the Federal Reserve. but cited the economy needed low interest rates in order for the economy to maintain growth. I find it interesting that Yellen continues to worry about inflation growing in the coming years, although the interest rate increase should keep inflation in check through its effect of the economic markets. Yellen sites that she would like the inflation to become and stay at 2 percent each year. However, the current inflation rate is .9 percent, so the the economy is a long way from achieving its target inflation rate

The Energy Information Administration of the Department of Energy began tracking weekly gasoline prices in 1990 by means of a survey of 800 service stations around the country. The average retail price for unleaded gasoline posted its fourth record high during the week of June 12, 2000, increasing 5 cents a gallon to an average of $1.681. The price at the pump is higher than the same period last year by 56 cents and has risen 16.2 cents over the past month (Anonymous, 2000).

According to economists surveyed by Bloomberg, consumer spending drives about two-thirds of the GDP, and economists expect that spending in the third quarter has been brisk, given relatively high consumer confidence levels. Home-grown demand won’t insulate the U.S. economy from a global slowdown, but it can push the U.S. toward a year of decent growth.

In the time period shown in the BEA release highlights document (2015, bea.gov), it is clear that real GDP increased 2.0 percent in the third quarter of 2015, according to the third estimate by the BEA. The document also states that the main driver of the increasing GDP is the rise in consumer spending on

Recently, the Federal Reserve Open Market Committee (FOMC) strongly floated the idea of another interest-rate hike, with the last one being a very minor one after seven years of 0% short-term interest rates. (CITE) While the decision to raise rates may be a foregone conclusion, it is important to note the various effects such a hike will have on the economy as a whole. Everything from the housing market to debt markets to emerging markets will be affected. The ripple effect from such a decision could affect the economy for years to come. With all of these factors in mind, I believe that the Federal Reserve should raise interest rates now.

Q1: What role do market makers play in the trading system? How do they profit from this role? How do the market makers compete with one another?

On September 18, 2013 the Federal Reserve reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In addition, the committee agreed to continue its monthly $85 billion purchase of Treasury and mortgage-backed securities as long as the unemployment rate remains above 6.5 percent. Inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal and longer-term inflation expectations continue to be well anchored .

Both the Dow and S&P 500 fell beneath their 50-day moving midpoints surprisingly since April 21. Bank stocks, which outflanked in the post-election rally, were the most exceedingly terrible hit.

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.