Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Bernanke Testimony Fails to Sway Investors

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
The S&P 500 (INDEXSP:.INX) finished the day up 0.2%. Ben Bernanke testified in front of the House Financial Services Committee and stated that the Federal Reserve's asset purchases are "by no means on a present course." The Fed may therefore reduce or increase the pace of bond purchases depending on economic conditions.

Gold and silver briefly spiked after Ben Bernanke began to testify this morning, but lost all of their gains and more throughout the day. Gold closed down 1.3% and silver closed down 3.5%. The 10-year Treasury yield dropped 4 bps to 2.48%, the first time that the yield had been below 2.5% in over two weeks.

Housing starts for June came in much worse than expected at a 836K annualized rate versus the 951K consensus, declining 9.9% month over month, due to a very sharp decline in multi-family homes. This was the largest miss versus the consensus in history. Permits for June were 911K, also falling short of the 990K expected. The Beige Book was released this afternoon in which 11 of the 12 Fed banking districts reported "modest to moderate growth."

Bank of America (NYSE:BAC) and The Bank of New York Mellon Corporation (NYSE:BK) both reported a surge in profits this morning before the market opened. Shares of Bank of America rose 3% on the day.

American Express (NYSE:AXP) shares fell today after the European Commission announced that a limit may be placed on the fees that banks can charge to process credit card payments. American Express is notorious for charging very high fees. The company is due to release earnings after the close today.

Tesla Motors (NASDAQ:TSLA) rallied 10% on the day after Dougherty raised its price target on the stock to $200. This rise comes a day after shares plunged 16% following a Goldman Sachs downgrade.

Tomorrow's Financial Outlook

Jobless claims will be released at 8:30 a.m. EDT. Initial claims are expected to come in at 344K after seeing 360K last week. The 4-week moving average of claims currently stands at 351.8K. The Philadelphia regional manufacturing survey will be released at 10:00 a.m. EDT with an expected reading of 9.0. Leading economic indicators from June will also be released at 10:00 a.m and are expected to rise 0.3% from the month prior.

Ben Bernanke will deliver his semi-annual report to the Senate Banking Committee at 10:30 a.m. EDT. His notes will be released an hour and a half prior to the testimony.

BlackRock (NYSE:BLK), Capital One Financial (NYSE:COF), Chipotle Mexican Grill (NYSE:CMG), Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Morgan Stanley (NYSE:MS) and Verizon (NYSE:VZ) will be releasing earnings tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE