U.S. stocks opened flat on Friday as the rise in U.S. dollar which climbed to a 14 yr. high against a group of currencies has paired back growth expectations for multi-national U.S. companies hurt by the strength of the dollar in global markets.
Comments yesterday from Fed Chair Janet Yellen about an interest rate hike occurring “relatively soon” has boosted the strength of the dollar along with robust housing starts data, rising CPI inflation, and better than expected October retail sales released earlier in the week that makes a compelling case for the Federal Reserve moving forward with an interest rate hike at their December meeting.
According to CME’s Fed watcher tool, the probability of 0.25 percent basis point interest rate hike at the Fed’s December 14th meeting currently stands at 90.6 percent.
Trump Makes Key Cabinet Picks
Multiple sources today are reporting that president elect Donald Trump has chosen Senator Jeff Sessions (R-Alabama) for Attorney General, an early supporter known for taking hardline positions on immigration.
Retired Lt. General Michael Flynn was selected as Trump’s national security adviser and Rep. Michael Pompeo (R. Kansas) will serve as Director of the CIA.
Flynn had previously worked at the Defense Intelligence Agency in 2014 and was known for taking tough positions on Islamic extremism.