thank you KLP
Close Dow +57.50 at 10635.25, S&P +4.74 at 1170.28, Nasdaq +3.81 at 1880.87: The key news item in the market today was the Fed's decision not to change interest rates, but it did shift from an easing bias to a neutral directive, which had been expected. The market impact was relatively muted. This is the first step toward an eventual increase in interest rates, but the market still doesn't expect a rate hike until May. In the statement, there was a hint that rate hikes are likely to come....
After the announcement, Goldman Sachs upped its real GDP estimate and the firm now expects the Fed to increase the Fed Funds rate by 75 basis points in three increments, starting at the June 25-26 meeting, rather than their previous forecast of no change....The other big story today was the Hewlett (HWP 18.80 -0.45) vote on the HWP/CPQ deal. HWP's CEO says they have enough votes to pass the merger, but it's not official....Elsewhere, Procter & Gamble (PG 89.94 +2.28) helped lift the Dow and the overall market when the consumer product giant upped guidance. A strong earnings report from Goldman Sachs (GS 91.05 +1.85) helped drive the financials. Dollar General (DG 16.99 +1.62) helped propel the retailers, especially the discounters: FDO +5%, NDN +3%....
However, Gemstar-TV Guide (GMST 16.04 -5.69) was under pressure after a weak report....Overall, cyclicals were the market leaders today as the Fed's shift is further evidence of an economic turnaround. Consumer-oriented stocks also did well thanks to PG and others. Techs were mixed while airlines were weak....Looking ahead, it's a quiet session after the bell on the earnings front, but TriQuint Semi (TQNT 11.88 +0.04) will have an update.DJTA -0.6%, DJUA +0.2%, DOT +0.2%, Nasdaq 100 -0.1%, Russell 2000 +0.4%, SOX +0.7%, S&P Midcap 400 +0.2%, XOI +0.7%, NYSE Adv/Dec 1713/1427, Nasdaq Adv/Dec 1818/1714 |
