Keeping an Eye on Economic Indicators

After the Ben Bernanke announcement, investors watch to see how the market will react.
8:31 | 09/19/13

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Transcript for Keeping an Eye on Economic Indicators
This is a special report from ABC news. Hello I'm timing and New York with ABC news digital fashion. Report -- watching live coverage of the opening. And there is the opening bell for this Thursday September night. Hello everyone -- -- Hernandez in new York stock futures are rising this morning after soaring to all time highs yesterday sparked up. Ben Bernanke's remarks when Bernanke talks Wall Street listens but will this euphoria continue. Joining us now with more on that -- this morning's business headlines as ABC's chief business and economics correspondent Rebecca Jarvis good morning Rebecca good morning -- Let's start by going over the events. Yesterday that started this rally. Yesterday what we heard from the Fed was a surprise announcement they're going to keep pumping 85 billion dollars a month. Into the markets and the reason I was as surprises because most people were expecting that they would tell us that the economy is improving enough so that they can take their. What a little bit off of the gas they're put -- of the -- there and take about ten to fifteen billion dollars off the table on a monthly basis. What's interesting here is that that typically speaking wouldn't be the best news to hear that our economy is -- growing fast enough. But the reason Wall Street likes it is because that 85 billion dollars that the Fed pumps and goes toward stocks and that -- stocks higher now. In the longer run the Fed said that some of the big issues now -- Washington DC dysfunction we have a government shut down potentially on the horizon on October 1. The debt limit debate that continues and that's going to be a big issue going -- -- -- -- in the market be very skittish about the issue of exactly when these assistants is going and sell our rehab just putting off inevitable firm. A little bit longer at least that's what a lot of people would say that we know that at some point this policy can last into perpetuity the Federal Reserve. Can't continue to buy bonds 85 billion of them every month we know what's got to happen at some point the question is. When is the economy in the Fed's view what is the economy strong enough to work without the training wheels on. That still is -- left up to the Federal Reserve to determine. But we also know that we could be getting -- -- -- share. For example doctor Janet Yellen who is now currently a member of the Federal Reserve could end up taking Ben Bernanke's place in the near future. Most people on Wall Street think that would be a continuation of the current policy. But if it was someone other than Janet Yellen we may actually see a change in the policy as well and that adds to -- -- So this begs the question with the S&P 500 at an all time -- will it stay the -- -- and I mean everybody's gonna ask that question. Nobody nobody and I knew I was listening who has been told. With a guarantee. Anybody who is keeping a poker face and saying yes I guarantee it's going to stay here right guarantee it's going to a higher or guarantee it's going to go lower. Nobody can guarantee. Any of those things but what we do know is that the market going forward is going to face some treacherous waters. Not only because of the Federal Reserve but also because of Washington DC. Washington DC over the summer has been relatively quiet so as a result of that as far as the markets and the economy -- Washington has been relatively quiet. So a lot of what Wall Street's been paying attention to is the fat will now we have these important battle coming up. And it doesn't look like it's going to be clean it looks like it's gonna get ugly and in general those ugly fights in Washington. Translate to ugliness on Wall Street and we still have reports coming in all kinds of economic indicators that -- -- market one where and other. -- at last week's unemployment numbers had a name. -- what we're seeing this morning are the jobs reports the number of new claims being filed for unemployment. In last week in those increase last week. By about 151000 so new people filing for unemployment claims obviously we want to see that number go down as opposed to go up. But we're also looking at that number about a six month low what's interesting and some people look at this. And are skeptical is that there have been issues. With the Department of Labor with the way that they're calculating this with their computer. And ultimately that's making some people look at this number with some skepticism and say well if -- computers are working you're not getting the number right you told us that there were its mistakes. Errors confusion in the past why are we paying attention to this number now. All right very confusing there active living on other market is -- JPMorgan Chase hit a huge buying today what's that -- path. Well JPMorgan. Chase for what some people recall as the London whale problem that it -- Years ago. They are now settling with US and UK regulators for a more significant amount than what many we're anticipating 920 million dollars that's getting paid out. Two eight different regulatory bodies both here in the United States as well as in the UK but what's really significant here is that. Until this year under the SEC chair Mary Jo White. A company didn't have to come out and admit wrong doing it could settle a bank could settle charges. And would never have to actually admit any wrong doing while they change those rules this year and as a result JPMorgan is the first bank that had to come out. And simultaneously. Admit wrongdoing. At the same time that it is paying out that fine. I I've heard from Jamie diamond that he's putting now. A billion dollars a year into putting new controls into JPMorgan and how they do trading. And made major oversight there are right and a little bit to find here black people want to. Get that new -- they don't wanna wait in line they can -- -- wanna do that now. Yes the time I don't know here you're looking for anything fun to do with your spare time I certainly was curious about this so. Some people might have heard of task -- -- task rabbit is this company that. You can essentially go out and hire yourself a task rabbit to do many things whether it's. -- an -- and to go pick up a toll. For your child or to pick up cupcakes for school or maybe you need some photocopies -- -- -- like the tax credit to do it. Good news they're there for that but they're also -- To -- and online or in line depending on what part of the country -- -- you college different thing they're there to wait for you so that you can. Yet here I found that brand new iPhone the five the five -- that comes out tomorrow -- I think and it like fourteen dollars an -- that could be -- very expensive. Addition. To your iPhone bill it's certainly could tie but I'll tell you one thing I'm looking forward to leaving here because I'm higher -- granite and after -- I'm just going -- -- -- -- -- -- -- Good strategy there let's take another look at the -- actually before we -- anything else investors -- going to be watching. I think the main thing is. What happens at the Federal Reserve. What's the Fed's thinking and people are still trying to tease this out I mean you're here Wall Street and investors on Wall Street. Thinking about what's in the Fed's mind and really what is that bad mean in spite of the fact that we have this bad that is having press conferences is telling. People publicly what it intends to do. Which -- by the way different it wasn't always that way we didn't always get to hear from the Fed chair and hear this extensive. What their thinking well. That's what Wall Street is going to be teasing out and listening and going over every word Ben Bernanke said yesterday to trying get clues. But they're also going to be focused -- have been saying on these deadlines that are coming up in Washington DC because ultimately it's that. -- is going to be the next big big big thing. Outside of the things that we can't even imagine could happen but that's going to be the next big thing that we know is on the calendar that Wall Street cares about. And it you know we've seen these -- debates in the past we've seen the budget battles. Of course there's probably a bit of prices -- but the reality is they can have a very sizable impact not only on the stock market but also that ripple effect on the economy. All right so I don't know if it's -- for better for -- something different focus on other than the Fed finally. The markets Rebecca Jarvis thank you so much for joining us let's take one last look at the Dow it is up almost 9 points this morning. Again our thanks to ABC's chief business and economics reporter Rebecca Jarvis this has been an ABC news special report on -- Hernandez and Gil. This has been a special group. Report from me.

This transcript has been automatically generated and may not be 100% accurate.

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