Last Data Ahead Of Fed Decision… And Commemorating The 25th Anniversary Of 9/11 9/11/26

Melissa Lee (0:00)

The board recommends approving...

David Solomon (0:01)

Regarding that seat on the committee, we're promoting...

SPEAKER_3 (0:02)

to most quarterly earnings...

SPEAKER_4 (0:04)

Every day, shareholders meet to discuss important matters about the companies you invest in. Now you can easily make your voice heard. Vanguard Investor Choice gives you a say in the companies you invest in. With just a few taps, you can set your proxy voting preference for your index funds. Visit vanguard.com/investorchoice to learn more. Vanguard Investors own shares of our index funds, which own shares of the companies they invest in. Available for Vanguard index funds that participate in Investor Choice. Vanguard Marketing Corporation Distributor.

SPEAKER_3 (0:30)

Are you as confident as you should be when it comes to growing your business? Is your strategy ready to execute today?

If cash flows aren't where they need to be, growth could be at risk, especially in the eyes of your investors, board members and the business press. But when your business is operating in top shape, you've earned the right to grow. EY Parthenon can help you reimagine your business and execute a game plan for long-term growth. EY Parthenon, solutions that work in practice, not just on paper.

Melissa Lee (1:02)

Live from the NASDAQ Market site in the heart of New York City's Times Square, this is Fast Money. Here's what's on tap tonight. Stocks rebounding to end the week, and investors now turn their attention to next week's Fed meeting. So what's the path forward for markets and rates? We'll debate that. Plus, Oracle more than gives back its post earnings gains. Dell soars, and one analyst says there's even more upside. Boy, the chart master says it is time to buy Amazon right now.

And on this 25th anniversary of 9-11, we are joined by this year's FDNY Foundation honoree, Goldman Sachs CEO, David Solomon. What the day means to him and how the financial sector, New York City, life in general has changed in the last quarter century.

I'm Melissa Lee, come to you live from Studio B at the NASDAQ. On the desk tonight, Tim Seymour, Karen Feinerman, Steve Grasso and Guy Adami. We start off with that last bit of data before the Fed's next rate decision. Consumer prices rising four tenths of a percent between July and August. 3.14 percent from a year ago. That was in line with estimates, but basically cemented a rate hike at next week's central bank meeting, odds closing in at 90 percent that the Fed ups its target by 25 basis points on Wednesday. Stocks up today in spite of the hawkish data, major indices all breaking four-day losing streaks, but still well in the red for the week. So with all the big data points now in for the Fed, what is the path forward for markets and rates? Guy, what do you think?

Guy Adami (2:20)

Well, I think JP Morgan now thinks of two rate hikes this year. I think September and December, I think, is what they said. And to your point, the Fed watch tool suggests more than 80 percent now. But remember, Kevin Warsh doesn't make the decision in a vacuum. People have to sign off for this. So I'm still not convinced it's going to happen. But I'm even sure that whether it happens or not is all that important. We've made the point that a rate hike might actually counterbalance this move we've seen in longer term bonds, which might actually be a good thing. Bottom line is rates are going higher for the wrong reasons. Whether they hike or not, I think at this point the genie is out of the bottle.

Tim Seymour (2:53)

But rates are going up around the world. What's also fascinating about today was supposedly some relief from a CPI that more or less came in line but was not disinflationary enough. As we said, it looks like we're getting that hike, although you never know. But we closed near the high on that tenure. I mean, it's $4.97-ish. We got up to $4.99, spot $1.5. But the bottom line is on a day when the VIX fell 12%, 13% and the S&P was up 1%. You would have thought that that would have also been a follow-through on yields. I thought today's price action was fascinating. You also had the yen strengthening aggressively. It felt like if you believe there's some unwind of at least some carry trade, that there was a dynamic here where there was at least some selling of treasuries, some buying of yen after selling some dollars.

Either way, global interest rates went higher this week. ECB raised. BOJ is going to raise next week. What can equities do at a 5% discount rate?