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3/16/10 Midday Report: The Fed is coming! The Fed is coming!

|Includes: GE, GOOG, KIT digital, Inc. (KITD)

The market is largely in neutral today as investors await the Fed's decision on interest rates this afternoon.  With the lilkelihood of the Fed keeping rates at their current low levels somewhere between the likelihood of Michael Lewis droning on about his bond trading days in his new book or the likelihood of getting herpes from a night of snorkeling Paris Hilton (and that of course is a trick analogy, since the odds of both of those are 100%), investors are anxiously waiting to see if the language of the Fed will change (and as always, Money McBags votes for a change to Esperanto or perhaps even pig latin, you hear that Enbay Ernankebay?).  It is likely that the Fed will tweak the language just enough to hint that their accomodative stance (though not as wide or accomodative as a Larry Craig stance) will only last for so long, but there is unlikely to be enough detail for anyone to feel confident in a time frame.  If by now you haven't figured out that rates are eventually going to go up, Money McBags can't do anything for you other than to help you strap your helmet back on and buy one of your handmade potholders.  In US macro news released today, US housing starts were down in February by 5.9% to 575k, but that was slightly better than the 570k economists were guessing.  Multi-family dwelling construction was down 30% which is probably bad news for Mormons and John Edwards.  The decline in housing starts though is largely being blamed on snow storms in the South and Northeast where construction was down 15.5% and 9.6% respectively, though construction of igloos was up 58% in both geographies.  Surprisingly, the West and Midwest both showed greater than 7.5% increases in new home starts, or on an absolute level, 2 houses.

In international news, the 16 EU countries (there used to be 17 but they kicked out Grumpy) agreed to back Greece with loans if needed.  While the plan was almost as vague as a Nostradamus prophecy, the term "sexual relations" to Bill Clinton, or the US's bank bailout plan, European markets greeted it with open arms and one of those cheek to cheek kissing things they so much love to do.  The issue could come to a head in April or May when Greece faces more than 20B euros in debt redemptions which is one hell of a night out in Athens.  For 20B Euros there should have...READ MORE INCLUDING KITD ANALYSIS....

Disclosure: Long KITD