CPI falls in December, Goldman Sachs (GS) reports weak profits and investigation begins into Fiat Chrysler (FCAU) for Cherokee fire

Markets were heading higher on Friday after the Consumer Price Index reading came in on par with expectations. The Labor Department announced that their CPI dropped 0.4% in December, which notes the largest drop for the index since December 2008. During the last 12-months, CPI grew 0.8%. This is the slowest yearly growth since October 2009. Despite the seemingly weak data, it was in line with economists’ expectations. This data leaves many to believe the Fed will not be imposing a rate hike anytime soon. Michelle Girard, chief economist at RBS, said, “The odds of a rate hike in June are fading fast. The recent data cannot leave the Fed feeling more confident that inflation will move higher.” Shares of The Goldman Sachs Group, Inc. (GS) were sinking after the company reported weaker profits that were affected by lower fixed-income trading. They said that there was a 7% decline in fourth-quarter profits. The largest drop for the company was in fixed-income trading, which dropped 19%. This has been a moneymaker for the bank. This portion of trading has come under stricter guidelines following the financial crisis. During the last quarter of the year, the banking giant earned $2.17 billion, or…

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Car sales expected to hit 8-year high this month, Shake Shack to IPO and Fiat Chrysler (FCAU) to place recall

Markets were moving slightly higher on Monday, as trading volume remained light over the holidays. Cars.com released a report that shows the company predicts car sales to hit an eight-year high in December. This report showed that sinking gas prices are helping to fuel demand for SUV’s and trucks. They are predicting that sales will top last year’s by 11.3%, or about 1.5 million. Jesse Toprak, chief analyst with Cars.com, said, “New-car sales are finishing the year on a high note, with total industry sales expected to exceed 16.5 million units in 2014. Bolstered by low gas prices, SUV and full-size truck sales have been particularly strong this month – even beyond normal seasonality.” They are also predicting sales for 2015 to hit 17.1 million. The popular burger chain, Shake Shack, announced that they would be heading towards an initial public offering, in hopes to raise about $100 million. The fast-food company is a made-to-order burger restaurant that is known for providing fresh and natural ingredients, such as hormone and antibiotic free beef. There are currently 63 burger chains throughout the world. Last year, the company posted revenue of $84.5 million, which jumped up 45% from the previous year. They…

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Republican party takes Senate, Private job numbers up and Chrysler (FCAU) beats with third-quarter results

Markets were heading higher on Wednesday after the Republican Party took control of the Senate. Republicans took 52 seats while Democrats took 43.  Portfolio manager with Pioneer Investment Management, John Carey, said, “It had looked like some of the races would be very close and that we might not know who controlled the Senate, but in the end the results were pretty decisive. That’s good news for the industries that had been subject to regulatory issues.” Private job numbers surpassed expectations in October. The ADP National Employment report showed that there was an addition of 230,000 jobs added last month. This is the seventh straight month of gains over the 200,000 level. This also surpassed that 220,000 that economists were expecting. When broken down by business size mid-sized business added 122,000 jobs and small businesses added 102,000. Professional and business services added the largest amount of jobs with 53,000. Mark Zandi, chief economist with Moody’s Analytics, said, “The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes.” Fiat Chrysler (FCAU) shares were trading higher after the company released their third-quarter results that surpassed expectations. Net income rang in at $611 million,…

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Fed statement due out today, Chrysler (FCAU) announces another recall and Goodyear (GT) posts strong results

Markets opened relatively flat on Wednesday ahead of the Federal Reserves policy statement. The two-day meeting ended today and it’s expected that the Fed will announce the end of its monthly bond-buying program. The session will not end with a press conference by Federal Chair Janet Yellen, like previous sessions. This leads many to believe that they will not announce any major changes in their policy until the December meetings. The Fed has been underscoring the strengthening economy with positive data in the recent months, like strong consumer growth and business spending, manufacturing growth, steady hiring and low unemployment data. Many investors are predicting that they Fed will announce they plan on keeping interest rates near record lows as well. Peter Jankovskis, co-chief investment officer at OakBrook Investments, said, “Everybody is looking ahead to the FOMC statement in the afternoon. I’d expect we won’t have a lot of movement before that. Not a lot is expected other than a confirmation that they eliminated QE and maybe we’ll get additional guidance, hints on when they might start raising rates.” Shares of Fiat Chrysler Automobiles (FCAU) were trading higher after the company announced that they would be placing a new recall on Ram…

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