Wednesday, June 18, 2014

Economic Journal - Wednesday, 6/18/2014


(As of 7:20 am PST)

US stocks have stalled out after three straight days of modest gains as investors await this afternoon’s press briefing from Fed chairwoman, Janet Yellen.  The Federal Open Markets Committee (FOMC) began its second day of meetings today and is expected to release a statement at 2 pm EST this afternoon.  Most investors are in agreement that the Fed will announce a further reduction of its monthly bond buying program, likely to the tune of $10 billion per month.  What investors will be looking for, however, are any comments from Yellen that would indicate the Fed’s move to raise interest rates in the near term.  Recent data, such as lower unemployment and steadily rising inflation, support the rate hike coming sooner than later.  In corporate news, Amazon chief Jeff Bezos is expected to showcase the company’s much anticipated smartphone at an event in Seattle today.  International markets are mixed with Asia mostly lower and Europe etching higher.  Gold is lower and oil is on the rise as the conflict in Iraq threatens supplies. 

No comments: