This Day On The Street
Continue to site right-arrow
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!

Bernanke: Asset Purchases Not on a Preset Course: Ahead of the Ticker

Stocks in this article: BAC MAT

NEW YORK ( TheStreet) -- Federal Reserve Chairman Ben Bernanke said in testimony to Congress Wednesday morning that the central bank still plans to begin tapering its bond buying program later this year, although no timetable is set in stone.

"Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," he said.

Last month, Bernanke said the Fed would stop buying bonds by mid-2014. Unemployment is expected to be around 7% by that time.

If the economy improves at a faster rate than currently anticipated, Bernanke said the central bank's pace of purchases could be reduced "somewhat more quickly." He said it could also go on for longer if the outlook on labor conditions worsens. Bernanke cited federal spending cuts as a factor that could weigh on economic growth in the foreseeable future and force the Fed to continue its pace of asset purchases.

Bernanke added that benchmark short-term interest rates could remain near zero for "a considerable time" after the bond-buying program ended. The Fed has kept interest rates near zero since late 2008.

Bank of America (BAC) reported better-than-expected profit for the second quarter, boosted by a drop in expenses.

Bank of America reported net income that rose to $3.57 billion, or 32 cents a share, from $2.1 billion, or 19 cents a share, in the same period last year. The results handily beat analysts' expectations of 25 cents a share, according to Thomson Reuters.

Revenue rose 3.5% to $22.73 billion.

Higher revenue from equities sales and trading also contributed to the better-than-expected results. The global markets division saw a 93% rise in net income to $959 million. The bank's operating expenses fell to $16.02 billion from $17.05 billion in the same quarter a year ago. Bank of America has been aiming to save $8 billion a year through an initiative introduced in 2011.

Toymaker Mattel (MAT) reported a 23% drop in second-quarter profit on struggling sales of Barbie products.

1 of 2

Select the service that is right for you!

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 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • 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