June 19th 2014 –S&P Carves Out Another Record High
Market View:
Another rally following the Fed new conference. It seems that the Fed Committee is seeing enough improvement to buoy optimism, yet enough caution to have the Fed continue to support the market by taking any changes in interest rates very slowly indeed.
This was seen as very positive news by market participants as the Indexes shot up shortly after the press conference. Now we are back to all time highs we may break out again to the upside for a few days.
Market News:
U.S. stocks on Thursday were little changed, with the S&P 500 again finishing at a record high, a day after Wall Street rallied on reassurances from the Federal Reserve that interest rates would remain low as the U.S. economy continues to recover.
Leading indicators were up 0.5 percent in May, versus a 0.6 percent estimate, while a separate report had the Philadelphia Federal Reserve’s June business index at 14.5, down from the prior month’s reading of 15.4.
And, in another illustration of an improving labor market, the government reported fewer Americans filed claims for jobless benefits last week, with applications falling by 6,000 to 312,000.
Stock indexes had held modest losses as President Barack Obama reiterated during a televised news conference Thursday afternoon that U.S. troops would not be returning to Iraq, but the U.S. is prepared to take targeted military action in the country if warranted.
Gold futures gained over 3.5% to trade at $1,318 per ounce, the highest level since April. Investors who believe Fed policy will undermine the dollar view gold as an alternative currency. In addition, gold prices often rise during times of political and military uncertainty.
Most European markets closed higher. Despite the ongoing crisis in Ukraine, Russian stocks have been on a tear. The benchmark Micex index has erased its losses for the year and the rubel is also back near pre-crisis levels. Asian markets were mixed.
Friday
Earnings: Darden Restaurants
News Sources: CNBC and CNN Money