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 It was a quite day in the markets. First, the scoreboard: - Dow: 15,967.0, -8.9, -0.0%
- S&P 500: 1,787.8, -3.6, -0.2%
- NASDAQ: 3,931.5, -17.5, -0.4%
And now the top stories: - JPMorgan finally reached a settlement with the government over financial crisis-era mortgages. It will pay a $13 billion settlement, the largest payment by a company in history. "This historic deal, which will bring long-overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do," said New York Attorney General Schneiderman. "We refused to allow systemic frauds that harmed so many New York homeowners and investors to simply be forgotten, and as a result we’ve won a major victory today in the fight to hold those who caused the financial crisis accountable."
- Shares of Best Buy got crushed after the company announced disappointing sales and warned on profit margins. Comparable store sales climbed by just 0.3% versus expectations for a 0.7% gain."First and foremost, we are committed to being competitive on price," said Best Buy CFO Sharon McCollam. "[I]t is table stakes in our transformation. So if our competition is in fact more promotional in the fourth quarter, we will be too and that will have a negative impact on our gross margin.
- The expected next Chair of the Federal Reserve offered some color on her views on monetary policy. "Monetary policy is likely to remain highly accommodative long after one of the economic thresholds for the federal funds rate has been crossed," said Fed Vice Chair Janet Yellen in a letter to Senator Elizabeth Warren. The Fed had previously said it would use a 6.5% unemployment rate threshold and a 2.5% inflation rate threshold to guide monetary policy. "It is also important to note that the thresholds are not triggers - that is, once a threshold has been crossed, the (Fed's policy-setting) committee will not necessarily raise the federal funds rate target immediately," Yellen said.
- Legendary investor Jeremy Grantham just published his Q3 letter to GMO clients. "My personal guess is that the U.S. market, especially the non-blue chips, will work its way higher, perhaps by 20% to 30% in the next year or, more likely, two years, with the rest of the world including emerging market equities covering even more ground in at least a partial catch-up," he wrote. But this is not to say he's actually bullish on stocks. "And then we will have the third in the series of serious market busts since 1999 and presumably Greenspan, Bernanke, Yellen, et al. will rest happy, for surely they must expect something like this outcome given their experience."
- Don't Miss: Here Are The 50 Stocks That Big Hedge Funds Love Most »
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