(As of 7:30 am PST)
Markets
are drifting higher this morning after trading flat in early trading. Ben Bernanke is set to give his semi-annual
testimony before Congress this morning on the overall state of the
economy. In prepared remarks, Bernanke
said that tapering of the Fed’s bond buying program is not on a preset
path. The Chairman’s remarks are sending
stocks higher as investors view the Fed’s flexibility as a good sign that
“easy-money” will likely continue. In
other news, a report on the housing market showed new housing starts fell 9.9%
in June, the lowest level since August 2012.
Building permits, which are a sign of future demand, fell 7.5% in June,
the steepest decline since June 2011.
Some analysts are concerned that the sharp rise in mortgage rates may
slow the housing recovery, while others see the rise in rates as spurring more
buyers to rush into the market. The
recovery has been noticeable over the past year, with home prices beginning to
pick up in most regional markets. In
earnings related news, the big report today came from Bank of America, who
reported a 63% jump in profits in the second quarter. The stock is up 1.25% on the news. International markets were keying in on the
Bernanke testimony today. Asian markets
were choppy and Europe is higher. Gold is up and oil is down slightly. Rates continue to slip with the 10 yr. yield
down to 2.47%. Bernanke’s testimony is
overshadowing all other financial news today, with market direction dictated by the
Chairman’s remarks.
No comments:
Post a Comment