Only Ben Bernanke can get such a huge reaction by doing nothing.
Stocks surged worldwide after the Federal Reserve surprised the
world and announced that it will not scale back its $85 billion
monthly asset purchases. The Fed said that it needs stronger
evidence of an economic recovery before it stops its stimulus.
Market watchers were sure that the taper they were forewarned about
months ago was going to come yesterday.
Treasury bonds had their biggest rally since 2011 and gold prices
rose 4.5% on the news that the Fed will push back the day that it
will taper off quantitative easing.
US stocks continued to rally after global equities jumped to a
five-year high yesterday. Before the opening bell,
(INDEXDJX:.DJI) futures were up 0.17% at 15,620. Futures contracts
(INDEXSP:.INX) gained 0.28% to 1,622.60 and
(INDEXNASDAQ:.IXIC) futures rose 0.26% to 3,230.25. Gold prices
fell 0.75% at $1,299.60/oz.
Initial jobless claims rose from a seven-year low last week to
309,000. A computer error was reportedly behind the previous week's
plunge to 292,000, and that was revised up by just 2,000. The
four-week moving average slid to 314,750 weekly filings.
After 10 a.m., we will get US existing home sales for August. Last
month, the pace or pre-existing home purchases likely fell to an
annualized rate of 5.255 million from 5.39 million in July,
according to economists expectations. The Philadelphia Fed will
release its regional survey. The index is projected to rise to 10
from 9.3 this month.
) shares fell 1.09% after it reported a lackluster quarter and
reduced guidance. In its fiscal first quarter, Oracle earned $0.59
per share, as revenue rose to $8.37, missing analyst expectations.
The business software company's earnings outlook for the current
quarter is between $0.64 and $0.69 per share, which also trailed
Wall Street Journal
) is preparing to lay off as much as 40% of its current staff to
make itself more attractive for private equity buyers. The latest
figures show that the smartphone maker employs 12,700 people.
) hiked its quarterly dividend by 5% to $0.81 per share yesterday,
but shares of the fast food company were down 0.15% this morning.
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Media, has a business relationship with BlackBerry.