Stock market and interest rate charts
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Stock Market and Interest Rate charts. Stock market indexes. Dow Jones Industrial Average List http://money.cnn.com/data/dow30/ S&P 500 Complete list http://nyjobsource.com/sandp1.html NASDAQ http://en.wikipedia.org/wiki/Nasdaq_Composite http://en.wikipedia.org/wiki/NASDAQ

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Stock Market and Interest Rate charts

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Stock market and interest rate charts

Stock Market and Interest Rate charts


Stock market indexes

Stock market indexes

  • Dow Jones Industrial Average List http://money.cnn.com/data/dow30/

  • S&P 500 Complete list http://nyjobsource.com/sandp1.html

  • NASDAQ http://en.wikipedia.org/wiki/Nasdaq_Composite

    http://en.wikipedia.org/wiki/NASDAQ

    http://www.allstocks.com/NASDAQ/


Long term s p 500

Long term S&P 500


Stock market and interest rate charts

Long-term View of the DJIA


S p 500 price earnings div quarterly data

S&P 500 price, earnings, div. (quarterly data)


S p 500 price dividends eps annual data

S&P 500 Price, Dividends, EPS (annual data)

Price and earnings move together, dividends are lagging


Stock price earnings x multiple

Stock Price=earnings x Multiple

  • Multiple = price to earnings ratio

  • High multiples are sensible only if earnings are going to grow rapidly


S p 500 p e and p d multiples

S&P 500 P/E and P/D multiples


Trailing forward operating earnings

Trailing, Forward, Operating Earnings


P e ratio average since 1988 about 19 longer term average 15 9

P/E ratio Average since 1988 about 19, longer term average 15.9


Dot com bubble

Dot com bubble


Usa today internet 100

USA TODAY Internet 100

9/29/00


Interest rate slides

Interest rate slides


Stock market and interest rate charts

The Federal Reserve “targets” the federal funds rate.


Stock market and interest rate charts

Treasury Interest Rates


Stock market and interest rate charts

Prime Rate Constant at 3.25% since Jan. 2009


Stock market and interest rate charts

Inflation


Inflation

Inflation


Us tax rates

US Tax Rates


Us tax rates1

US Tax Rates


Yield to maturity yield curve

Yield to Maturity (yield curve)


Dividend payout

Dividend Payout


Interest rate forward and futures

Interest Rate: Forward and Futures

  • Have looked at historical interest rates for perspective

  • Yield curve is forward looking and contains implicit rates for future years

  • Interest rate futures are traded on CME group exchanges and provide market expectations

  • Interest rates are relatively low in 2012

  • Cannot “lock in” today’s low rate – can only lock in forward or futures rates


Forward interest rates

Forward interest rates

  • Hypothetical interest rates available

    • Fixed for one year @ 3%

    • Fixed for two years @ 4%

    • Fixed for three years @ 5%

  • The cost for the first year is 3%.

  • The two year loan costs 8% over two years, of which

    • 3% is the first year cost,

    • leaving 5% as the implied forward rate for the second year.

  • If you take the three year fixed period, the cost for three years is 15%

  • subtracting 3% for the first year and 5% for the second year, leaves 7% as the cost in the third year.

  • Thus, 5% and 7% are the year two and three forward rates.


More accurate forward rate calculation accounts for compounding

More Accurate Forward Rate Calculation (accounts for compounding)

  • irj = interest rate from time i to time j.

  • one year rate ; 0r1 = 3% -- given

  • two year cost: (1.04)2 = (1.03)(1+1r2) 1r2 = 5.01%

  • three year cost: (1.05)3 = (1.03)(1.0501)(1+2r3) 2r3 = 7.029%


Farm credit services of mid america rates as of 2 4 2011

Farm Credit Services of Mid-America rates as of 2/4/2011


Interest rate futures

Interest Rate Futures

  • CME group

  • Treasuries of different maturities and Eurodollar Futures

  • Eurodollar futures are on 3 month LIBOR interest rates

    • London Interbank Offered Rate

    • Traded many months into the future

    • Prices quoted as 100 minus the percentage interest rate

      • 5% interest would be quoted as a Eurodollar futures price of 95.

  • http://www.cmegroup.com/trading/interest-rates/


Eurodollar futures

Eurodollar Futures

3 month LIBOR futures

9/4/2012


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