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U.S. Stock Only Move Slightly

May 1, 2010

United States stock market closed slightly higher on Wednesday (26/01/2011) local time after the Federal Reserve keep interest rates very low and is committed to continue the bond purchase program to spur economic recovery.

United States Stock MarketDow Jones Industrial Average rose only 8.25 points (0.07 percent) to end at 11985.44. Dow blue-chip stock index is above the previously symbolic threshold of 12,000 for the first time since June 2008, before the financial crisis exploded.

While the broad market, the S & P 500 index rose 5.45 points (0.42 percent) to 1296.63 and the Nasdaq composite index increased 20.25 points (0.74 percent) to 2739.50.

“As expected, the Federal Open Market Committee (FOMC) concluded two-day monetary policy meeting by making no change in the Fed funds rate and the size or duration of the asset purchase program,” said analysts at Charles Schwab.

FOMC offer some changes to the post-meeting statement, asserted that since the last meeting in December the economic recovery continues, but at levels “that is not enough to bring significant improvements in labor market conditions.”

Briefing.com analysts said the interest rate decision and the FOMC’s statement “pretty much not an event”.

“The only question how many people who do not agree that there is the statement was answered when no member vote on the decision,” he said.

Investors are reminded about the housing market is still sore and is struggling to recover from the recession after the government reported new single-family home sales fell 17.5 percent in December, ending the worst year on record.

New home sales running at their fastest since last spring, but the speed remains near historic lows,” said Celia Chen of Moody’s Analytics.

Stocks in focus include Boeing, down 3.1 percent at 70.02 dollars. This offers the prospect of aerospace giant flat for 2011, below market expectations.

Yahoo! slumped 2.8 percent to 15.57 dollars after reporting fourth-quarter sales fell.

United Technologies, maker of Pratt & Whitney aircraft engines, fell 0.4 percent to 81.41 dollars after announcing fourth-quarter profits better than expected.

United Continental Holdings, airlines resulting from the merger of United and Continental, ending 2010 in the black position despite losing 325 million U.S. dollars in the fourth quarter due to merger expenses. Prospects in line with expectations and its shares jumped 7.1 percent to 25.79 dollars.

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