All signs last week pointed to a hobbled U.S. economic recovery and lower interest rates for longer. Stocks basked in the mediocrity.

The Dow Jones Industrial Average rose 97 points, or 0.5%, to 18,491.96—just 0.8% below its record close. The Standard & Poor’s 500 index rose to 2179.98. The Nasdaq Composite rose 0.6%, to 5249.90. Trading was as light as a pair of flip-flops padding around a beach in the Hamptons. Volume on the New York Stock Exchange hit 2.6 billion shares on Monday, the lowest for a full day for the year.

Data released last week showed that job growth limped forward in August, manufacturing unexpectedly contracted, and inflation stayed muted. Strategists and economists agreed that the new data undercuts the case for a September rate hike by the Federal Reserve.

The U.S. added 151,000 jobs in August, less than the 180,000 that economists had expected and below July’s 275,000. Wages limped ahead by 0.1%, and the average workweek contracted slightly. Investors tend to look skeptically at August reports, which include more seasonal adjustments than other months. “We’re in the sweet spot,” says Brad McMillan, chief investment officer at Commonwealth Financial Network. “It wasn’t bad, but it should keep the Fed from raising rates. So we have growth and a few more months of monetary stimulus. You can’t ask for more than that.”

Manufacturing also slumped. The Institute for Supply Management said Thursday that its manufacturing index fell to 49.4 in August, well below the expected 52. Anything below 50 indicates the manufacturing sector is declining. Weakness in manufacturing sometimes heralds a recession, but Michael Shaoul, CEO of Marketfield Asset Management, wrote that manufacturing is “stagnating” because the economy is shifting more quickly toward service jobs. The weakness shows “a narrowing of the economic base into service and a portion of the industrial economy.”

Inflation data gave investors more confidence that the Fed will hold off. A report on personal consumption expenditures indicated that inflation has stayed steady at a core annual rate of 1.6%, still below the Fed’s target.

That said, investors do appear ready for a rate hike, according to Jim Paulsen, chief investment officer at Wells Capital Management.

“I think this suggests that the bond market is continuing to price in a near-term rate hike by the Fed,” he wrote. “If the bond market felt the job numbers pushed back the Fed until December, I doubt yields would have risen today. And that is also the message coming today from stocks, commodities, and the U.S. dollar.”

Oil prices slumped last week more than they have in any week since early July, with futures falling 6.7% to $44.44 a barrel. Investors continue to fret about oversupply in the industry as crude stockpiles grew unexpectedly. And there are more indications that drillers are ramping up again, as unemployment in the energy and mining sector fell to 5.4% in August from 9.3% in July. “The negative effects of lower oil prices on the energy sector are behind us,” wrote Deutsche Bank economist Torsten Slok.

(Source: Barrons Online)

In a week that really came down to one day’s events, stocks fell almost 1%, buffeted by seemingly conflicting comments from Federal Reserve officials. The Dow Jones Industrial Average lost 157 points, or nearly 1%, to 18,395.40, while the Standard & Poor’s 500 index declined 15 points to 2169.04. The Nasdaq Composite fell 0.4% to 5218.92.

Trading was quiescent Friday ahead of a speech by Fed Chair Janet Yellen, and stocks drifted lower. Although Yellen said the case for raising interest rates had increased of late, she said the rise would be gradual.  Yellen made no reference to a potential September hike. Nothing new here. After her speech, stocks recovered all the ground they lost earlier in the week. Then Stanley Fischer, the Fed’s generally hawkish vice chair, appeared on CNBC, and indicated that Yellen’s speech was consistent with a possible rate hike in September and December.

The equities market wasn’t prepared for a potential hike just a few weeks away, and stocks plunged 1% from the day’s highs. Unsurprisingly, the financial sector was effectively the only one up on the week; higher interest rates are good news for banks and insurers.  After Fischer’s comments, the fed futures market showed investors putting the probability of a September hike at more than 40%, double what it was a few weeks ago and up from nearly zero right after the Brexit vote. “It’s hard to read the Fed tea leaves,” says Joe Saluzzi, co-head of trading at Themis Trading. “Two rate hikes would seem to be in play now.”

This week promises to be another one where Friday could be a key session. On Sept. 2, U.S. unemployment data for August will be released. If results turn out to be much better than expected, look for September-rate-hike market expectations to spike sharply. The jobs data could turn out to be the most important numbers of the year, outside of election results.

If the Fed has been giving mixed signals, the market has exhibited contradictory reactions. Shares have risen when the threat of a rate hike was postponed. But this year there have been occasions also when the market rose when a rate rise seemed more likely. What gives?

If a hike is based on a stronger economy, the market likes that, says Saluzzi. “Yet the data isn’t enough to make you feel good about it,” he adds.  He’s referring to Friday’s report about second-quarter gross domestic product, which was revised downward to 1.1% from a preliminary read of 1.2% by the Commerce Department.

“The economy continues to be lukewarm,” says Jonathan Golub, chief equity strategist for RBC Capital Markets.  Leave out the energy-sector earnings rebound from year-ago decimated levels, and corporate earnings haven’t grown much in the past 12 months. Yet bond returns are so much lower than equities, which have returned 5% from dividends and stock buybacks, that the relative attraction of stocks versus fixed income “could continue unabated for a while,” says Golub.

Beyond what the Fed does or doesn’t do next month, look for the debate on fiscal stimulus to pick up ahead of the elections, he adds. Short of that, he notes, the economy looks stuck in second gear.

(Source: Barrons Online)

The stock market finished little changed last week in quiet summer trading. August doldrums were punctuated briefly by all-time highs set on Thursday, though prices retreated slightly on Friday.

Soft U.S. retail sales and consumer sentiment data out on Friday dampened investor enthusiasm. Interest-rate hike expectations eased, which led to a 1% drop in financial stocks on the week.

All three major U.S. indexes hit highs simultaneously on Thursday, the first time that has happened since Dec. 31, 1999, during the dot-com boom. (The Nasdaq did it again on Friday.) That era seems a long time ago in a galaxy far away. Today’s market continues to rally despite finding little support among institutional investors and facing downright skepticism in many quarters. Perhaps that’s where the bull’s strength lies.

The Dow Jones Industrial Average rose 33 points, or 0.2%, last week, to 18,576.47, below the record high of 18,613.52. The Standard & Poor’s 500 index inched up by one point to 2184.05, just below its high of 2185.79. The Nasdaq Composite gained 0.2%, to 5232.89, another new high.

Investors live in a world of low corporate profit growth and low bond yields, notes Douglas Cote, chief market strategist at Voya Investment Management. That’s conducive to making an already pricey market—the S&P 500’s price/earnings ratio is 18.5 times 2016’s earnings—more expensive.

The desperate search for yield continues, as evidenced by the better-than-18% returns this year in ho-hum sectors like telecom and utilities. Consequently, says Cote, the market shouldn’t be measured against its own historical average P/E, about 15 times, which suggests it is expensive. Instead, it should be compared to bonds and other alternatives. With the Treasury’s 10-year note yielding 1.5%—near lows not seen before in modern history—there’s no alternative to stocks for investors who want returns.

The more stocks go up, the more those sitting on the sidelines will be forced to capitulate and join in, Cote contends. Thus, he maintains, the market can continue to get more expensive in the context of such low bond yields.

In a way, this market—though much less expensive than it was in the dot-com era, when its P/E hit 28—has something in common with that old bull. In those days, there was an emotional euphoria about powerful profit-growth expectations, driven by then-new Internet stocks. Today, another emotion—a desperation for yield—mirrors that euphoria. In 1999, the market reached its 28 P/E when bonds were yielding about 6.5%—yes, you read that right.

(Source: Barrons Online)

After weeks of slumber, the market sprang awake Friday, jolted by a much better than expected July employment report. The Standard & Poor’s 500 rose 0.9% on the day, and closed at a new high.

For the week, The Dow Jones Industrial Average rose 111 points, or 0.6%, to 18,543.53, while the S&P 500 index increased nine points to 2182.87. The Nasdaq Composite jumped 59 points, or 1.1%, to 5221.12, also a new record. After lagging earlier in the year, the Nasdaq has risen about twice as fast as the Dow and S&P in the past month, as technology stocks have outperformed.

U.S. employers added 255,000 jobs in July, and the government revised upward June’s tally to 292,000. None of the 89 economists surveyed by Bloomberg before the report had expected such robust growth. Even groups formerly left behind during the economic recovery—like people without high school diplomas—saw gains during the month. The unemployment rate stayed steady at 4.9% as the labor force grew by more than 400,000. Wages ticked up by 0.3 percentage points, and have risen 2.6% in the past year, the most since 2009.

The strong gains should quell some concerns about the recent muted growth of the economy. Last week, the Commerce Department estimated that GDP grew 1.2% in the second quarter, a much weaker number than expected.

“Everyone was waiting for this employment report to see if it confirmed the weakness in the GDP number,” said Keith Lerner, chief market strategist at SunTrust. “It didn’t, and people had a sense of relief.”

The Atlanta Fed releases an up-to-the-minute forecast for GDP. It predicted Friday that third-quarter GDP could rise 3.8%.

The improving jobs market makes it more likely the Fed will raise interest rates, possibly as soon as September. After the report, futures markets indicated that the chance of a September hike had risen to 26% from 18%.

Cyclical sectors led the market higher; defensive, bond-like companies generally lagged. Financials jumped 1.9% Friday; tech rose 1.2%, and consumer discretionary stocks, 1.1%. But utilities dropped 1.4%, and telecom, 0.2%. Gold futures also fell Friday, by $22.40 an ounce, or 1.6%, to $1,336.40.

For much of the year, gold has risen and utilities and telecom stocks have led the market, as they offer large dividend yields and less risk from an economic contraction. With the market shifting, new sectors are leading the indexes now. Tech and health-care companies have shown particular strength in this earnings season, with more than 80% of companies in each sector reporting better-than-expected earnings.

Investors haven’t jumped in with both feet yet, however. While the market hasn’t had a recent correction, trading has been cautious. Stocks traded in a tight range in the second half of July, a pattern Lerner thinks gave investors a healthy breather. Surveys show investors remain particularly cautious, indicating that the recent move higher isn’t a burst of irrational exuberance.

Investors have pulled $70 billion from equity funds this year so far, while pumping $137 billion into bond funds, according to the Investment Company Institute. A BofA Merrill Lynch survey last month showed investors are stockpiling more cash than they have in 15 years. “Normally at tops in the market you have excessive optimism,” Lerner said. “You’re not seeing that.”

(Source: Barrons Online)

Stock prices closed at all-time highs for the second week in a row. The fireworks weren’t as impressive as the previous week, when at least one major index set a new high each day, but the market finished Friday with a flourish.

The Dow Jones Industrial Average rose 54 points, or 0.3%, to close at 18,570.85, just inches below its record high of 18,595.03, hit Wednesday. The Standard & Poor’s 500 index picked up 2175.03, a new high. The Nasdaq Composite rose 1.4%, to 5100.16.

Still, it was an up and down week, due partly to second-quarter earnings reports that tugged the market one way and then the other. Soft results from the transportation sector and from Intel (ticker: INTC) Thursday cooled off a market that had shot up on a strong report from Microsoft (MSFT) the previous day.

Markit said Friday that its July preliminary U.S. Manufacturing Purchasing Managers Index (PMI) rose to 52.9, above expectations and the highest in nine months. Markit’s Eurozone Composite July PMI data fell less than feared. Even hints from the Federal Reserve that it could raise interest rates before year end didn’t sidetrack the bull—for now.

The package of stronger economic data was helpful, says Quincy Krosby, Prudential Financial’s markets strategist. Though earnings weren’t great, the tone is more positive and suggests—with more companies yet to report—that the profits-growth recession is lessening, she says. Rightly or wrongly, that’s led to an easing of worries about Brexit.

Some issues should be capping market enthusiasm—whether uncertainty about the U.S. elections or long-term Brexit fallout—but the market doesn’t seem to care, according to Mark Luschini, chief investment strategist at Janney Montgomery Scott. “The path of least resistance is up,” he says.

Investors are looking past the second quarter and “borrowing” earnings growth from the balance of the year and 2017, he adds. The “sturdy” U.S. economic data mean the Fed will likely hike interest rates by year end, Luschini says, and a September hike isn’t off the table “if the data holds up.”

There’s some rally-chasing going on, adds Seth Setrakian, president of Spectrum Capital Management. “Everyone who was panicked a month ago after Brexit can’t help themselves buying now,” he says. Setrakian, who also says a September Fed rate hike is on the table again, is worried about the next few months. Commodity prices are soft, the dollar is strong, and there’s continuing uncertainty about the elections, he says. “The market doesn’t care…until it does.

(Source: Barrons Online)

According to a neighbor of ours in upstate New York, bear meat is tasty. Last week, bullish investors found out just how tasty.  After being caged in a tight range for nearly 14 months and after several fruitless attempts to top its all-time high set in May 2015, the bull charged to a new high in convincing fashion. The two major stock indexes set records every day but one and rose about 2%.

The rally’s proximate causes were short covering by mauled bears; good-to-decent economic news out of the U.S. and China; and indications from central banks that the global ultralow interest rate regime will continue. The turn-on-a-dime, rollicking 8% rally since Brexit lows on June 27 made it feel as if somewhere a power switch had been flipped on.

The Dow Jones Industrial Average gained 370 points, or 2%, to 18,516.55, a new high. The Standard & Poor’s 500 index soared 32 points to finish at 2161.74 on Friday, just off Thursday’s all-time peak of 2163.75. The Nasdaq Composite rose 1.5%, to 5029.59.

Trading volume and many other market technical measures, like breadth, are strong. “That tells you this breathtaking run is a good breakout,” says Keith Bliss, director of sales at broker-dealer Cuttone. He adds that another confirming measure is the 11% post-Brexit rise in the small-cap Russell 2000 index, which has outperformed large-cap measures.

Yet that’s cause for concern to Ralph Fogel, head of investments at Fogel Neale. The Russell 2000, the Nasdaq, and the Dow transports are not near their highs, which he thinks is a lack of confirmation and “disconcerting.”

Fogel notes that if you “take a few hundred stocks out of the equation, the broad market hasn’t surpassed the highs.” The market’s price/earnings ratio isn’t cheap, at 18 times, and corporate earnings-per-share growth is deteriorating, adds Fogel, who nevertheless remains “fully invested.”

Tradition Capital Management Chief Investment Officer Benjamin Halliburton concurs. “It’s hard to see significant upside from here,” he says. And yet, he adds, for most investors the choices are limited, given the extraordinarily low yields that government and corporate bonds offer. The 10-year Treasury yields about 1.6%.

“If the economy continues to show some backbone, it should be OK,” says Tom Carter, trader at JonesTrading Institutional, who calls himself “somewhat bullish.” Second- quarter earnings are going to be down from a year ago, but perhaps the results will be better than the lowered expectations, he says.

Many professional market participants still don’t seem to believe in this aging bull, which could be a positive signal. Moreover, individual investors have yet to join the festivities. Lately, the heavy lifting has been done to a large extent by corporations buying back their own stock in huge bunches.

In recent months, we’ve been more skeptical than downright bearish about the prospects for this seven-year bull market’s sustainability. We have to admit our view now seems off the mark. We’re nonplussed by a market at all-time highs that betrays few signs of irrational exuberance.

(Source: Barrons Online)

After an uneven start to the week, U.S. stocks finished on a high note, thanks to a strong June jobs report that reassured investors about the health of the U.S. consumer.

“Today’s report helped alleviate those concerns that the economy was rolling over,” Mike Ryan, chief investment strategist at UBS Wealth Management, said on Friday.

Powered by that good news, the Standard & Poor’s 500 index finished the week at 2129.90, just shy of its all-time closing record of 2130.82, set in May 2015. The index rose 32 points, or 1.53%, on Friday.

Eight of 10 sectors ended the holiday-shortened week in positive territory. The best performers were consumer-discretionary stocks, up 2.27%, and health care, which gained 1.99%. Materials, industrials, and technology also did well, each rising more than 1%. Telecommunications and energy each finished the week down a little more than 1%, and utility stocks were up slightly.

Energy stocks came under pressure as oil prices, which had rallied recently, fell back to the mid-$40s on news that oil inventories were higher than expected.

It was a solid week overall for the big U.S. stock indexes. The Dow Jones Industrial Average closed at 18,146.74, up 1.1% for the week, with all 30 of its constituents posting gains on Friday. The Nasdaq Composite, a technology bellwether, advanced 1.94%, to 4956. The gains stretched across market capitalizations; the Russell 2000 Index, a small-cap benchmark, closed at 1177, up 1.78%.

U.S. markets were closed last Monday, July 4.

THE BIG DRIVER behind Friday’s gains was the much-anticipated U.S. Labor Department jobs report. In June, nonfarm payrolls increased by 287,000, easily surpassing the consensus estimate of 180,000. The results marked a reassuring turnaround from May, when only 11,000 jobs were added.

“The job gains were broad-based outside of construction in June,” notes Jason DeSena Trennert, CEO of Strategas, an investment research firm. Trennert describes the U.S. economy as “a workhorse against a tepid global backdrop.” He adds, “Job growth is OK, but there’s still no rush for higher rates in a maturing cycle with a flattening yield curve.”

Indeed, the yield on the 10-year U.S. Treasury settled on Friday at 1.366%, a record low, as stocks sold off earlier in the week amid further concerns about the vote in the United Kingdom to exit the European Union.

Dennis DeBusschere, head of global portfolio strategy at Evercore ISI, attributes the low yields to more of a “money-flow, central-banking issue than a sign that the U.S. economy is in trouble.” With yields so low in other developed countries, U.S. Treasuries look relatively attractive, he says.

The market didn’t seem to mind that the U.S. unemployment rate ticked up to 4.9% from 4.7%; this was mainly attributed to more people entering the job market.

The jobs report was a referendum of sorts on the U.S. consumer, whose durability has been called into question by the market, given how long the current recovery has lasted.

“It was a strong enough report to reduce any recession fears that might have increased due to extended labor-market weakness,” says DeBusschere.

(Source: Barrons Online)

In just four trading days, beginning Tuesday, world equity markets recovered most of the ground lost following the June 23 Brexit vote. U.S. major stock indexes, which at one point had fallen 6% after the United Kingdom’s surprising decision to leave the European Union, finished near levels reached just before the referendum.

On the week, the Dow Jones Industrial Average soared 549 points to 17,949.37, up 3%, while the Standard & Poor’s 500 index jumped 66 to 2102.95. The Nasdaq Composite increased 3.3% to 4862.57.

After heavy selling the previous Friday and Monday, the market reversed course Tuesday, as further reflection allowed investors to revise their view of Brexit’s implications to “Let’s wait and see” from “Let’s dump stocks.” In the U.K. Thursday, the Bank of England signaled that further monetary stimulus is on the way, and some believe the European Central Bank will follow suit. Brexit means expected U.S. rate hikes are on hold, perhaps until 2017. High trading volume characterized the tumultuous week. By the lows Monday, the U.S. market had fallen nearly 6% before rebounding roughly the same amount. Financial stocks took the brunt of the uncertainty, falling 8% after the vote. Afterwards, the sector rebounded but still remains 2.6% below its pre-Brexit level.

Kevin Kelly, Recon Capital’s chief investment officer, says investors went from “feeling like they were walking on broken glass” to the view that it will take two years for the U.K. to leave the EU, so nothing has really fundamentally changed.

Near-term, the market will look for any potential Europe-derived fallout in U.S. corporate earnings, says David Donabedian, chief investment officer at Atlantic Trust. There’s an expectation that second-half U.S. profits will rebound, but that could be called into question if the European economy tanks, he says.

(Source: Barrons Online)

Financial markets round the world slumped Friday, blindsided by the previous day’s stunning Brexit vote. The major U.S. stock indexes fell nearly 4% Friday and finished down over 1% on the week, after having been up 2% just before Thursday’s referendum.

The U.K. decision to leave the European Union isn’t good for U.S. equity market sentiment in general, with investors already jittery about U.S. and global growth, and trade. Brexit has heightened fears about both the free flow of capital and nationalism. Even the perception that capital may not be able to move freely is an “undeniable negative” for financial markets, says Jeff Bahl, principal at Bahl & Gaynor.

The vote also means the Federal Reserve will most likely hold off raising interest rates. A July hike—already doubtful—is probably off the table. Brexit’s effect on Standard & Poor’s 500 index earnings-per-share growth might not be significant, but it doesn’t help an already-weak picture.

The Dow Jones Industrial Average fell 1.6% or 274 points to 17,400.75, and the S&P 500 gave up 34 points to 2037.41. The Nasdaq Composite dropped 2%, to 4707.98. On Friday, the Stoxx Europe 600 index fell 7%, and stocks fell about 6% globally.

Brexit is a reminder, says Kate Warne, an investment strategist at Edward Jones, that “you don’t invest based on polls,” a particularly relevant observation ahead of the U.S. presidential elections.

In terms of implications, the exit will probably take a few years to unfold, and is more specific to the U.K. than the rest of the world. It could cause delays in economic decisions by businesses and consumers in the U.K. and possibly elsewhere, but not a global recession, she says.

The keys to whether the U.S. economy is affected significantly will be whether equities tumble enough to have a major impact on business and consumer confidence, and whether banks are so affected that they pull back on lending, according to a report from Jim O’Sullivan, chief U.S. economist at High Frequency Economics. U.S. exports to the U.K. make up about 0.7% of U.S. gross domestic product.

Brian Belski, chief investment strategist at BMO Capital Markets, says Brexit will favor North American financial stocks over European ones. Indeed, the European bank stock sector, which has had a poor year, plunged 14% Friday to its lowest level since August 2012.

THE MARKET’S BIG SLIDE Friday after the surprise Brexit vote was one more example of the failure of the S&P 500 to surpass its all-time high of 2130.82 over the past 13 months, after brushing up against it several times.  Bulls point to a lack of participation by individual investors in this seven-year bull market—compared with the great tech bull of 2000—as a positive contrarian sign. Once the market gets by this rough patch, they will pile in and drive prices higher.

Some sentiment indicators, however, show individual investors are already close to being fully invested. U.S. households’ equity holdings at the end of March equaled 51.5% of their total financial assets, according to Ned Davis Research Group. That’s significantly above the mean of 44.4% since 1952, says Davis, the company’s senior investment strategist and founder.

Moreover, household cash allocation was 25%, lower than the 32% mean. So, investors have less dry powder than they do on average. Allocations are close to levels in the past when the market was overbought, he adds: “When investors are pretty fully invested in stocks, the returns looking out 10 years are generally poor.” There is a strong correlation between household asset-allocation levels and long-term equity returns, according to NDR research.  Other data show institutional investors and foreigners are fully invested, too, he observes. That leaves corporate share buybacks as the biggest source of stock market impetus. In fact, Davis says, the main reason stocks have done so well and could have further upside is that corporations continue to be huge buyers. Nevertheless, if they are purchasing their stock at overvalued levels and the market falls, or if they are using lots of debt for repurchases and interest rates go up, it’s a negative for the company and its shareholders.

Corporate buybacks, along with negative real interest rates in the U.S., could yet push the market higher, Davis says, adding that he remains “mildly bullish.” However, he views the upside as limited because the market apparently is in a mature phase.

(Source: Barrons Online)

Who’s afraid of Brexit?

Most of the world’s stock markets, it appears. Bond markets, however, not so much, as investors fled to safe-haven fixed-income assets last week and abandoned equities.

The major U.S. indexes fell more than 1% in volatile trading, caused by uncertainty about the potential outcome of the United Kingdom’s June 23 referendum on whether to leave the European Union.

Also unnerving investors were fears of slowing U.S. growth. The Federal Reserve not only didn’t raise interest rates last Wednesday, as expected, but it also lowered its projections of U.S. growth and future hikes. Not so expected. The Fed now looks for paltry annual economic expansion of 2% through 2018.

The Dow Jones Industrial Average fell 190 points, or 1.1%, to 17,675.16. The Standard & Poor’s 500 index declined 25 points to 2071.22, and the Nasdaq Composite dropped 1.9%, to 4800.34.

That markets are pretty nervous is clear from the first-ever drop below zero in yields on 10-year German bonds, says Michael Sheldon, chief investment officer at Northstar Wealth Partners. With rates negative or low in other developed-nations bond markets, “we are in uncharted territory,” he says.

He doesn’t expect a recession this year, but global bond-market behavior “has an increasing number of investors worried that there is something out there that should have us more worried.”

“The Fed’s in a pickle,” says Aaron Clark, a portfolio manager at GW&K Investment Management. “It wants to raise rates, but the data isn’t strong enough.”

The central bank continually has had to back away from its own overly aggressive projections in the past two years. “The Fed’s credibility is at risk,” says Clark.

Although Brexit seems to be holding U.S. stocks hostage, Clark says an EU exit might be priced in. European banks have been crushed, he notes, with some down 40% and others at lows not seen in years.

There might not be much more downside if Britons vote to leave, but there could be a pretty rapid and volatile unwinding of positions if the U.K. votes to remain, he adds.

And, if you haven’t had enough of the Fed, Chair Janet Yellen is testifying in Congress Tuesday and Wednesday.

(Source: Barrons Online)