MARKETS-STOCKS/USA OPEN-ANALYST Wall St opens higher after GDP data

Record ID: 142311

  • Title: MARKETS-STOCKS/USA OPEN-ANALYST Wall St opens higher after GDP data
  • Date: 27th August 2015
  • Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 27, 2015) (REUTERS) (SOUNDBITE) (English) EMANUELLA ENENAJOR, SENIOR ECONOMIST AT BANK OF AMERICA, SAYING: "The Fed is not blind to what's happening in markets and a continued panic and a continued sell-off is not really the environment that the Fed wants to hike into. But we do think markets will calm down over the next couple of weeks. The Chinese government has already announced some stimulus, easing fears, perhaps if further measures are announced or if markets kind of get a bit of a bottom or a quelling in concerns, we could see the Fed feel comfortable hiking into those kinds of market conditions. When we talk about the fundamentals for the U.S. economy, which is ultimately what matters the most for the Fed, we look at the GDP data that came out this morning, very strong, the trend in nonfarm payrolls above 200,000 for the last several months, we think this is the kind of economy that justifies a Fed rate hike."
  • Embargoed: 11th September 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVACV52UEOMX9EAFZ0IW156A6O54
  • Aspect Ratio: 16:9
  • Story Text: U.S. stocks opened higher on Thursday (August 27), a day after posting their biggest one-day gain in four years, as data showed the economy grew faster in the second quarter than initially thought.
    Bank of America senior economist Emanuella Enenajor said central bankers should take a "wait-and-see" approach to tightening policy due to a financial market sell-off and China's economic slowdown.
    "The Fed is not blind to what's happening in markets and a continued panic and a continued sell-off is not really the environment that the Fed wants to hike into," she said.
    "We do think markets will calm down over the next couple of weeks. The Chinese government has already announced some stimulus, easing fears, perhaps if further measures are announced or if markets kind of get a bit of a bottom or a quelling in concerns, we could see the Fed feel comfortable hiking into those kinds of market conditions. When we talk about the fundamentals for the U.S. economy, which is ultimately what matters the most for the Fed, we look at the GDP data that came out this morning, very strong, the trend in nonfarm payrolls above 200,000 for the last several months, we think this is the kind of economy that justifies a Fed rate hike."
    The Dow Jones industrial average rose 206.91 points, or 1.27 percent, to 16,492.42, the S&P 500 gained 23.52 points, or 1.21 percent, to 1,964.03 and the Nasdaq composite added 65.92 points, or 1.4 percent, to 4,763.46.
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