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Bulls Shows Absolutely Zero Patience in Post-FOMC Rally


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

As expected, the Federal Open Market Committee removed the word "patient' from its policy statement, opening the door for an interest rate increase.

However, the Fed's overall posture was more dovish than traders were anticipating, sending equity markets into mega-rally mode after the release of the statement.

While the Fed expects an improved unemployment rate for the next three years, it also downgraded its GDP and inflation outlooks, and it lowered its year-end Fed Funds rate forecast to 0.625% from 1.125% previously.

Additionally, during the subsequent press conference, Fed Chair Janet Yellen said, "just because we removed the word patient doesn't mean we'll be impatient." She also noted that inflation is running below expectations.

The market took the announcements as evidence that the Fed will be very slow in raising rates.

The S&P 500 rose 1.2% to 2099.40, while the Russell 2000 hit a new all-time intraday high at 1255.68.

The US dollar fell 1.7% against the euro. The dollar's drop pushed up gold and oil prices, both of which have been under serious pressure as of late.

Energy stocks were remarkably strong, with the Energy Select Sector SPDR ETF (XLE) rising 2.9%.

The 10-year US Treasury yield fell below 2%, sending bond prices higher.

On the global central bank front, Sweden's Riksbank cut its repo rate by 15 bps to -0.25%, and said it is buying SEK 30 billion worth of government bonds to support the upturn in inflation. The news sent the Swedish krona down against the euro.

Denmark's Nationalbanken said that banks can now hold 145 billion Danish kroner in excess liquidity, up from 37 billion kroner previously. The move is intended at reducing pressure on banks from the country's negative deposit rate.

In earnings news, shipping giant Fedex (FDX) reported Q3 EPS of $2.01, beating by $0.13. However, its revenues were below expectations and the stock fell 1.4% to $173.30. Fedex also reduced its 2015 economic growth forecast.

Adobe (ADBE) also declined after earnings, as the software maker beat earnings expectations but delivered guidance that was below consensus estimates.

Aside from the Fed, the domestic economic calendar was light today. MBA Mortgage Applications fell 3.9% for the week ending March 13.

Tomorrow's Financial Outlook

While no single event tomorrow packs the punch of the Fed, we'll have plenty of data to chew on.

Starting at 8:30 a.m. ET, we'll see Jobless Claims and Current Account Balance numbers, followed by the Philly Fed Index and Leading Indicators at 10:00 a.m ET. Natural gas inventories will be released at 10:30 a.m.

In earnings, homebuilder Lennar (LEN) will report before the bell, which could provide some insights into the state of the housing market.

Twitter: @T3Live
No positions in stocks mentioned.
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