Monday's broad stock gains wiped out Friday's losses, which came after Federal Reserve Chairwoman Janet Yellen said that the case for an interest-rate increase had improved. But some investors were skeptical that an increase would come soon, or that it would be big enough to shake the long-running rally, writes WSJ.
"The bull market ends on a recession, it doesn't end on a rate hike," said Michael Antonelli, equity sales trader at Robert W. Baird.
Fed-fund futures, used by investors to bet on central-bank policy, recently suggested a 21% probability of a rate rise in September, compared with 33% on Friday and 21% Thursday, WSJ writes, citing data from CME Group. The odds for a rate rise by the end of year were roughly 52%.
The Dow Jones Industrial Average rose 108 points, or 0.6%, to 18503. The S&P 500 gained 0.5% and the Nasdaq Composite added 0.3%.
Below, some of the best analysis and insight from WSJ writers and columnists, and beyond, on investing, the wealth-management business and more.
TALKING POINTS
Stocks' next stop. Investors, advisers and traders are now trying to figure out whether or not the bank will raise rates next month, and maybe even in December, too. To that end, WSJ MoneyBeat has compiled the numbers the technical analysts will be watching in the days ahead.
A mortgage folly. Room-rental services such as Airbnb Inc. are causing problems for some homeowners looking to refinance mortgages, writes WSJ.
Big banks including Bank of America and Wells Fargo & Co. are subjecting some refinance customers who rent rooms to additional scrutiny. Some borrowers have been told they were no longer eligible for certain kinds of loans or would have to pay higher interest rates, according to the customers.
"This is kind of novel," said Jeffrey Naimon, a consumer-finance attorney and partner at law firm BuckleySandler LLP. "I don't think the market has gotten its arms around it."
PLANNING & INVESTING
Millennial price out. Millennials have benefited the least from today's strong housing market when, by some measures in the U.S., there has never been a better time to own a home, writes WSJ. Wages are rising, unemployment is falling and interest rates are hovering near record lows. That has helped boost home values, a trend that will likely be evident in data out Tuesday.
And yet, all of that is little solace to adults who haven't yet stepped on the housing ladder's first rung. Their caution has helped drag the homeownership rate to a record low. A new study by national realtor Redfin found affordability was the biggest concern among all U.S. home buyers.
THE BUSINESS
Firms lose on adviser moves. Each time an adviser changes jobs, firms may loose as much as $2 million, reports InvestmentNews.
The study, conducted by Kehrer Bielan Research & Consulting and sponsored by LPL Financial Holdings, found that advisers hired as a replacement generate less total revenue at a firm than the one who left would have produced over 20 years. The $2 million total doesn't take into account the loss of client assets during such transitions.
"While the replacement adviser closes the annual gap over time, the lost revenue is never recovered," Peter Bielan, co-author of the research report, told the publication.
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