Stocks rise on stimulus hopes
A Fed official backs an aggressive bond-buying program. The S&P 500 tops 1,400, and the Nasdaq is above 3,000. Standard Chartered shares plunge on money-laundering allegations.
By Andrea Tse
Stocks were rising Tuesday as investors latched on to calls by a Federal Reserve official to launch an aggressive bond-buying program.
Eric Rosengren, the president of the Federal Reserve Bank of Boston, said in an interview with The Wall Street Journal that the Fed should launch an aggressive, open-ended stimulus program that the central bank would continue until economic growth picked up and unemployment started falling again.
Rosengren said the Fed should buy more mortgage-backed securities and possibly U.S. Treasury securies and make it clear that it will continue to buy bonds "until we start seeing some pretty significant improvements in growth and income," the newspaper reported.
The economic calendar in the U.S. Tuesday includes consumer credit for June, due at 3 p.m. ET. Economists expect a $10 billion increase on the heels of May's surprise $17.1 billion jump. bigger-than-expected drop in June industrial production. German manufacturing orders declined in June. The Office for National Statistics reported a less-than-expected fall in industrial output in the United Kingdom for June.
British bank Standard Chartered saw its shares drop sharply Tuesday on charges from the U.S. that the bank was involved in laundering money for Iran. The New York Department of Financial Services alleges that Standard Chartered "schemed with the Government of Iran and hid from regulators roughly 60,000 secret transactions, involving at least $250 billion, and reaping SCB hundreds of millions of dollars in fees" over a nearly 10-year period. Standard Chartered said it "strongly rejects" the allegations. The New York State financial regulator has threatened to revoke the license of Standard Chartered to operate in the state, pending a formal hearing.
Chevron (CVX) said early Tuesday that a fire that struck its large refinery in Richmond, Calif., was contained but not yet extinguished. The fire hit the sole crude unit at the 245,000-barrel-per-day plant, which accounts for one-eighth of California's refining capacity, according to Reuters.
Walt Disney (DIS) reports fiscal-third-quarter results after the close, and analysts are calling for earnings of 93 cents a share on revenue of $11.30 billion.
Sirius XM Radio (SIRI) reported better-than-expected second-quarter revenue of $837.5 million. Analysts were expecting revenue of $834.38 million. Earnings per share were in line with estimates at 2 cents.
Thumbs up if you don't hate rich people
Thumbs down if you do hate rich people.
The top 5% of American earners paid over 50% of the total income taxes.
Thumbs up if you think that is a fair share
Thumbs down if you think it is still not enough
When we we finally learn? What is it going to take? It's like a bad movie that's always on no matter what day or time you turn on your TV....... So sad.
"Stock futures were drifting higher Tuesday on a light economic calendar day as investors latched onto calls by a Federal Reserve official to launch an aggressive bond buying program....."
The stock market really wants the cash off the side lines and into mutual funds. The powers to be have it fixed so you can't make any money just saving it in a safe account. The market refuses to move anywhere but up and sideways. Inflation is eating away at us savers too and it is scarry to think about how fast that could accelerate. They want your cash in at their price....... bottom line.
Inflation Jimmy Carter style, here we come.
so instead of the banks clearing out the foreclosures, the government continues to spend for "stimulus".
this is a hidden second bank-bail out
>>>>>The housing mess, which any of you that have read any of my posts know I consider still a TOP 3 issue concerning America today, is a local issue that has effected us Nationally. <<<<<
When you purchase a home with a mortgage, you own it. It is your responsibility to pay the RE taxes. Stopping payments to the bank doesn't change anything.
No money, no job, & no hope Bunky? Going forward with Obama? When are you going to learn that the business of America is business and not social engineering. Only when the rich are fat and happy will you be too.
It unfortunate that Americans have an instinctive hatred of the rich. Obama and his Democrat Pals always want the rich to pay more and more for their crap. The rich will get tired of being taxed more and more and will take their marbles and go to Bermuda or Germany.
The world is filled with ugly little people like Harry Reid. A good source tells me he picks up hooker off 14th St!
Go Mitt go. We've got to get rid of this $h*t!
I hope I win the lottery, I hope the Easter bunny, Sanata, the Tooth Fairy etc are real........
I hope there is nothing in the KOOLADE
I hope a woodchuck can chuck wood
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[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
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