Stocks are climbing again today after the Federal Reserve
surprised investors by keeping monetary stimulus in place.
S&P 500 futures are up about 0.25 percent, while Europe is up
about 1 percent. Most Asian bourses rallied about 2 percent in the
The Fed's decision yesterday not to taper monetary stimulus drove
interest rates lower and triggered a buying frenzy in stocks and
commodities. The dollar fell across the board, boosting a recent
trend of capital into foreign assets such as emerging markets.
The news potentially marks a return to the period between 2004 and
2007, when the global growth outpaced the domestic economy. While
the U.S. has shown signs of improvement for most of the year,
employment has lagged. Inflation and recent economic surveys have
also given central bankers reason to keep interest rates low.
Numbers from Europe and China have been improving at the same time,
while the Australian dollar--a key indicator of global growth--has
been rebounding from a three-year low.
Housing stocks, which spent most of 2013 consolidating in a range
after a big rally last year, also rallied because the Fed's move
will keep mortgage rates down. The industry could be active in the
near term because several key reports are scheduled for next week.
Price action remains mostly bullish in the foreign-exchange and
commodity markets. The euro is up slightly against the U.S. dollar
while the Japanese yen is down across the board. Oil is indicated
to climb another half a percent, while copper rose more than 1
percent. Gold and silver are pausing after their big moves
yesterday and agricultural foodstuffs are up across the board.
In company-specific news, Oracle is down about 1 percent after
reporting weaker-than-expected quarterly revenue last night.
Agilent Technology is rallying more than 10 percent on news it will
split into two companies. Rite Aid is exploding higher by 13
percent on a strong earnings report as well. Pier 1 is down after
missing analysts' forecasts.
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