Investors want to believe in central bankers so badly that they jumped the gun on an announcement by the European Central Bank on Wednesday. Dow futures jumped more than 100 points before the ECB said it would hold rates steady.
Nonetheless, the market was looking for a reason to rally, and if the ECB can’t supply it traders will simply look elsewhere. But where? U.S. productivity was revised downward to a 0.9% fall in the first quarter. And ECB President Mario Draghi signaled that the ECB won’t introduce new measures, although current programs will stay in place through next January. Stock gains eased after Draghi spoke.
Tomorrow, Fed Chairman Ben Bernanke is set to speak to Congress and the Bank of England will also weigh in on monetary policy.
Dow futures rose 53 points; S&P 500 futures rose 6.2 points.
Storage company Iron Mountain (IRM) rose 11% after announcing plans to convert to REIT status.
Tempur-Pedic International (TPX) plunged 43% after cutting its guidance.
Chesapeake Energy (CHK) rose 3% after a report that it is selling a pipeline unit.
MasterCard (MA) rose 1.4% after announcing a $1.5 billion buyback plan.
No comments:
Post a Comment