Tuesday, April 5, 2011

The $4 trillion man: one of five things to watch April 5

Inside the mind of Ben in the latest Fed Minutes, Paul Ryan showing off his $4 trillion budget ax, and fallout from the Boeing 737 cracks. As we suggested in Monday's post, the appearance of fuselage cracks would have an impact. Here's what we're watching…

1. Market Momentum: Just after the closing bell Monday, chip maker Texas Instruments announced that it would buy National Semiconductor in a $6.5 billion all-cash deal. The news sent shares in National Semi soaring after hours, while also adding spice to an otherwise bland market day. The broad indices were largely flat Monday, with the Dow recording a 23 point gain, and the S&P nearly unchanged. The 10:00am ISM non-manufacturing index is poised to be a key impetus Tuesday.

2. Forecasting the Fed: Central banker Ben Bernanke is in Georgia Monday night for an evening keynote at the Federal Reserve Bank of Atlanta's 2011 Conference. With a strong March jobs report in the books, an increasingly rosy economic outlook and the specter of inflation on the horizon, the big question is when the Fed will begin to tighten policy. Markets may get some clue Tuesday with the 2:00pm ET release of the minutes from the last FOMC meeting.


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