STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:00 pm, Thursday, March 19, 2015

syringe needleMarkets made a u-turn in trading, with stocks, the dollar and crude oil all reversing the initial reaction to Wednesday’s Federal Reserve statement.

First, the scoreboard:

  • Dow: 17,959.03 -117.16 (-0.65%)
  • S&P 500: 2,089.27 -10.23 (-0.49%)
  • Nasdaq: 4,992.38 +9.55 (0.19%)

And now, the top stories on Thursday:

  1. Biotech stocks supported a rally in the Nasdaq that kept the index alone in the green through the trading day. After the Federal Reserve assured markets it would be cautious in raising interest rates yesterday, despite removing language indicating it will be “patient,” stocks rallied. “Stocks are giving back a portion of late yesterday’s huge gain as traders continue to speculate on future Fed policy maneuvers in the backdrop of today’s mixed economic data releases,” the NYSE’s Rich Barry wrote in an afternoon email. 
  2. The dollar resumed its rally following a sudden 2.5% plunge in after-hours trading yesterday. The currency’s index, which measures it against major peers, climbed back above the key level at 99.00 to as high as 99.77. The euro and yen reversed yesterday’s gain, falling against the dollar.
  3. But according to HSBC, the dollar’s rally is overdone: “Excluding the mega rallies, the latest [US dollar] rally has been bigger than average,” the firm noted. It argued that the cycle is surprisingly EUR-USD bullish, valuations show the dollar is ‘rich,’ and it weakens in the early months of a Fed-hike cycle.
  4. Crude oil continued sliding after a post-Fed rally. West Texas Intermediate crude fell by as much as 3.5% to as low as $43 per barrel. Investors have been concerned about the oversupply of US oil, with the Energy Information Administration reporting Wednesday that inventories are still at the highest level in at least 80 years.
  5. Yelp shares fell by as much as 4% after investors got wind of a Kickstarter campaign for a documentary that seeks to expose alleged abuses. The filmmakers allege the company extorts business owners and makes up reviews on its site. A Yelp spokesperson told Business Insider: “The director has a conflict of interest, as she has a history of trying to mislead consumers on Yelp. There is no merit to the claims they appear to highlight.”
  6. In economic data, initial jobless claims beat expectations last week, climbing to 291,000 from 290,000 the previous week, above the forecast of 293,000. But the Philadelphia Fed’s report on manufacturing activity in March missed expectations, down 5.0 from 5.2 in February, with a forecast of 7.0.
  7. Apple traded on the Dow for the first time, replacing AT&T. Near the close, the world’s most valuable company’s stock was lower but little changed at around $127.83 per share. Business Insider’s Sam Ro calculated that a 9% decline in Apple shares will shave off about 77 points from the Dow. The Dow is a price-weighted index, so stocks with the highest price cause the most movements.

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STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

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STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

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This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

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STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

STOCKS SOAR, OIL PLUNGES: Here's what you need to know (DJI, IXIC, SPX … – SFGate

Akin Oyedele, provided by

Published 1:01 pm, Wednesday, March 18, 2015

SpaceX Falcon 9 Rocket

Stocks staged a huge comeback on Wednesday after the Federal Open Market Committee published its updated policy statement and the Federal Reserve Board Chair Janet Yellen held a press conference.

First, the scoreboard:

  • Dow: 18,076.19 +227.11 (1.27%)
  • S&P 500: 2,099.50 +25.22 (1.22%)
  • Nasdaq: 4,982.83 +45.39 (0.92%)

And now, the top stories on Wednesday:

  1. Patience is gone. Ahead of the FOMC statement, investors were watching whether its updated guidance on the path of interest rate hikes would remove the word “patient.” Here’s the key portion of the statement that changed: “Consistent with its previous statement, the Committee judges that an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”
  2. But the Fed chair said just because patience is gone does not mean the Fed will be impatient. In her press conference, Yellen said lift-off would depend on what the economy looks like. “We need to watch the data continue to reformulate our forecasts … to where the economy is going,” she said. Yellen added that rates may not reach “normal” levels for a while even after they rise.
  3. According to the newest “dot plots,” the FOMC’s expectations for the path of rates over the next couple of years have dropped, indicating a more dovish sentiment than at the end of last year. The new median dot for the end of 2016 is at 1.875%, down from 2.5% in the December statement. Meanwhile, the Fed’s latest “Summary of Economic Projections” shows that 15 of the FOMC’s 17 members see rates rising this year.
  4. Stocks reversed losses after the statement dropped and as Yellen spoke, with the Nasdaq climbing over 5,000 and the Dow crossing 18,000. Bonds also posted a huge rally, with the yield on the 10-year note dipping below 2% for the first time since March to as low as 1.98%. The 2-year note’s yield plunged the most since 2011, according to Bloomberg. Gold also rallied, climbing by nearly 2% to around $1169.90 an ounce. The dollar index fell nearly 2% to about 98.17.
  5. West Texas Intermediate crude oil also reversed losses and rocketed by up to 4% to around $46.88 per barrel. Earlier, WTI slumped by as much as 2% after the Energy Information Administration said oil inventories rose by 9.6 million barrels last week, from 4.5 million. Analysts polled by Reuters had expected an increase of 3.8 million barrels. Inventories at Cushing, Oklahoma grew by 2.865 million to hit a record high.
  6. Starbucks announced a 2-for-1 stock split effective on April 8, and the stock will trade on a split-adjusted basis from April 9. It’s the sixth stock split since the company went public in 1992. As Business Insider’s Sam Ro reports, “All that happens is that one share of stock becomes two shares. The shareholder will continue to hold the same percentage stake in the company.” The company held its investor day today. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price,” CEO Howard Shulz said.
  7. Nintendo shares spiked again in trading. Shares rose by as much as 26% to about $23.06 per share. On Tuesday, shares rallied after the company announced that it will start making games for smartphones and tablets.

DON’T MISS: DALIO: This is just like 1937, and the Fed could drive us into a new recession

Join the conversation about this story »

NOW WATCH: Here Are 5 Big Things Paul Krugman Says He Got Wrong Over The Years

See Also:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.