This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Stocks Finish Higher Ahead of Fed Decision

Stocks in this article: ^DJI^GSPC^IXICAAPLFBFXRTXONCY

U.S. stocks got an early boost after Germany's Federal Constitutional Court decided to throw out a request for an injunction against the European Stability Mechanism bailout fund. The mood also picked up after some heartening overseas data.

While ruling in favor of the ESM, the court also imposed conditions whereby German liability on the fund should not rise beyond €190 billion without parliamentary approval.

"Beyond this soft cap, the court is clear that political decisions on European integration and crisis management have to be taken by democratically elected people, which is a very soft stance as there seems to be nothing in terms of constitutional constraints on further integration," said Chris Walker, a strategist at UBS. "It is probably the most market-friendly outcome investors could have hoped for."

The ESM can now be formally approved soon; the ESM's first board meeting is expected in October.

"The ruling simply removed a near term item that was more speed bump than hurdle," commented Dan Greenhaus, chief global strategist at BTIG. "The constraints specified by the court aside, what matters for U.S. investors is less clear."

The FTSE in London was down 0.32% after staying in the green for much of the European session. The DAX in Germany gained 0.31% and was off session highs. On Wednesday, data showed that eurozone industrial production turned sharply higher in July and UK jobless claims fell more than expected in August.

The Hong Kong Hang Seng index settled up 1.10% and the Nikkei in Japan closed up 1.73% after Chinese Premier Wen Jiabao indicated that there's much room for the use of fiscal and monetary tools to help bolster the world's second largest economy and Japanese machinery orders rose more than expected in July.

The benchmark 10-year Treasury lost 16/32, lifting the yield to 1.762%. The greenback fell 0.25%, according to the dollar index.

October crude oil futures settled down 16 cents at $97.01, while December gold futures fell $1.20 to settle at $1,733.70 an ounce.

In U.S. economic news, the Commerce Department said wholesale inventories rose 0.7% in July, up the most in five months. Economists were expecting an increase of 0.2% after a decline of 0.2% in June.

2 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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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