(as of 7:00 AM PST)
Stocks are up nicely to start the week, recovering some of Friday's losses. Friday markets suffered from a rate decision hangover and fell hard, down 2%, after the Federal Reserve kept interest rates unchanged. The uncertainty goes on even as the Fed telegraphed that a December rate hike was in the cards. Unfortunately the Federal Reserve is losing credibility in its projections and investors are ever more uncertain about where rates are going. And uncertainty is not a friend to markets, but likely to increase volatility and reduce investor confidence over the long term. Economic data is sparse today with existing home sales the only significant number that might move markets. In the absence of positive data expect the rate decision hangover to become a factor that will continue to influence investor emotion. Don't be surprised to see markets give back gains as the day wears on. Oil is up while gold is giving back some of Friday's stellar gains.
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