(As of 7:15 am PST)
US stocks opened near the unchanged line after an
impressive late day rally yesterday which saw the S&P500 reach its 20th
record close of the year. Stocks soared
late in the session yesterday after comments from Fed Chairwoman Janet Yellen
indicated the Fed is in no hurry to raise short term interest rates. In a press conference which concluded a two
day FOMC policy meeting, the Fed Chair signaled the central bank was confident
it could hold rates low for a considerable length of time after the wind down
of its asset purchase program. The
market soared on the comments as many analysts had been calling for the Fed to
consider a rate hike as near term as this fall.
Despite the Fed trimming another $10 billion per month in bond
purchases, and lowering its 2014 growth forecast for the US, investors
applauded the upbeat comments on rates and sent stocks soaring at the
close. Markets are taking a breather at
today’s open. A report on jobless claims
showed claims dropping by 6,000 last week, as expected. The Philly Fed manufacturing index climbed in
June to its highest level since last September.
Gold is trading up nearly 1.5% while oil is trading back below $106 per
barrel. International markets are decidedly
higher as well.
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