This Day On The Street
Continue to site
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

Stocks Pare Gains on Speculation of Fed Tapering

NEW YORK ( TheStreet) -- Major U.S. stock markets pared gains Monday afternoon following a news report that the Federal Reserve is likely to address tapering of its monetary stimulus at its two-day meeting that ends Wednesday.

The S&P 500 gained 0.76% to 1,639.04, trading as high as 1,646.50 following better-than-expected manufacturing and housing reports which offered signs that the U.S. economic recovery is strengthening.

The Dow Jones Industrial Average added 0.73% to 15,179.85 while the Nasdaq tacked on 0.83% to 3,452.13.

The Financial Times reported during the afternoon session that Chairman Ben Bernanke during his press conference on Wednesday is likely to signal that the central bank is close to tapering its purchases of mortgage-backed securities and longer-term Treasuries.

The Fed's two-day meeting kicks off Tuesday, with its policy announcement, economic projections, and Fed Chairman Ben Bernanke's press conference taking place on Wednesday.

"Every investor right now is thinking about what the Fed is going to say, what the Fed is going to do, and the last time they spoke they roiled the market a little bit," said Randy Warren, chief financial officer at Warren Financial Service.

"Stocks were up this morning that Bernanke would come out and sooth the markets, say, 'You know what, we're not going to tapper off the bond buying program,'" said Gene Goldman, director of research at Cetera Financial. "There was excitement about that news, and then around 2 p.m. ET a report came out that said that he's still going to stick to his guns and he's actually going to talk about .... reducing the buyback."

New York manufacturing conditions modestly improved this month, the New York Federal Reserve said Monday citing its June Empire State manufacturing survey. The index rose nine points to 7.8, beating economists expectations. Most other indicators in the survey fell as the index for number of employees dropped to zero and the average workweek index retreated ten points to minus 11.3.

"In our view it would be risky to deliver a hawkish monetary policy message at a time when growth remains sluggish, inflation continues to trend down and market inflation expectations are dropping sharply," Jan Hatzius, Goldman Sachs' chief economist in New York, commented in a report.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FB $95.21 -1.84%
FOLD $16.39 -1.09%
NFLX $111.56 4.18%
WY $30.46 0.53%
AAPL $122.37 -0.50%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs