After a multi-day winning streak, the market is turning to the Fed to keep the rally going. His congressional testimony today will be closely watched. In prepared remarks, he has already stated that the Fed stands ready to act on any economic deterioration. The rest was his normal vague nuanced speech. If investors were hoping for the big QE reveal, lets just say they didn’t get it. Sign Up For Free Stock Alerts
Europe has returned to their rumor mill ways. The first was that Merkel was open to supporting Euro bonds, which was later denied. Spain’s bond auction was deemed a success thanks to heavy demand, but borrowing costs continue to be at unsustainable levels.
Those looking for actual easing policies versus vague hints or rumors can thank China. The PBOC cut rates overnight by 25 bps for lending and deposits. This helped spark the early rally on the street.
A quick look at the market has the three major indices well off their session highs. The Dow is up 79, the Nasdaq 6 and the S&P 6. [Read more...]