This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: When Doves Lie

Updated from 6:56 p.m. ET with information on after-hours trading.

NEW YORK (TheStreet) -- And that's the power of Apple (AAPL).

What may have more to do with whether stocks can build on this rally though is how the market ultimately interprets the mixed message sent by the Federal Reserve on Wednesday afternoon as the central bank's members telegraphed growing hawkishness but good, old Ben Bernanke remained his dovish self during the press conference.

From here, it looks to be like many things in life, a matter of timing. As Ian Shepherdson, chief U.S. economist at High Frequency Economics, noted, the pressure is building for a change in the central bank's stance on tightening despite Wednesday's decision to stand pat.

"The FOMC statement yesterday stuck to the view that rates will remain 'exceptionally low' through end-2014 but the new economic projections show that only 4 of the 17 FOMC members expect no change in rates by that date and the median forecast is 1.0%. How can this be?," Shepherdson wrote. "Mr. Bernanke was quite clear: The FOMC deliberations 'trump' the forecasts, which are no more than 'input' to the decision-making process."

This year a number of the known hawks -- Charles Plosser, Richard Fisher, James Bullard, and Narayana Kocherlakota -- don't have votes so the doves are in control for now, and Wall Street seems fine with that.

Meantime, Sam Stovall, chief equity strategist at S&P Capital IQ, sounded a note of caution late Wednesday, saying the market's generally positive reaction to first-quarter earnings may be running its course. He sees the signs of political instability in Europe as worrisome.

"What next?," he wrote. "Investors responded rapidly to their underestimation of Q1 EPS growth, but may soon grow immune to the effects of an above-average beat rate. Upcoming European elections offer a new fixation, in our opinion, that may only cause the markets to a enter period of renewed uncertainty surrounding the fallout of elections that may be tipped by voters influenced by austerity fatigue, as well as political leaders who admittedly miss budget targets."

As for Thursday's scheduled news, Amazon.com (AMZN) reports its first-quarter results after the close, and the average estimate of analysts polled by Thomson Reuters is for a profit of 7 cents a share in the March-ended period on revenue of $12.9 billion. In the same period a year earlier, the company earned 44 cents a share on revenue of $9.9 billion.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs