(As of 7:10 am PST)
Stocks opened flat Wednesday
but are looking to keep their winning streak alive, with a 5th
consecutive session of gains on the line. Investors began the session on a
cautious note after comments made from Federal Reserve Chairwoman Janet Yellen
seemed to reiterate that the Fed will likely raise interest rates in 2015.
Yellen, in her semiannual testimony before Congress this morning offered an
upbeat view on the US economy highlighting a pickup in consumer spending and an
improving labor market as evidence of the economy’s growth prospects. Yellen
also commented on Greece, indicating the Fed has been considering Greece’s debt
dilemma in its decision around the timing of a rate hike, but pointed to
Greece’s recent resolution as a good sign that the Fed will push forward as
planned. Economic data is also keeping investors busy today. U.S. producer
prices rose 0.4% in June, better than expected, and pointing to a pickup in
inflation. Manufacturing activity, as measured by the Empire State index,
picked up in July recovering from a contraction in June. Industrial production
picked up in June as did capacity utilization. In earnings related news, shares
of Bank of America rose in the pre-market after the bank reported better than
expected Q2 earnings. After the market closes today, reports from Intel and
Netflix are due out. European stocks are mostly higher heading into the final
hour of trade while Asian stocks finished mixed with China’s market down 3%
despite a strong economic growth report. Gold and oil are both down today while
interest rates are flat.
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