Stocks rallied to close sharply higher on news that most of the nation’s largest banks have passed the government’s latest test of their financial health. Retail sales rose 1.1% in February, raising hopes that higher gas prices will not dent consumer spending. The central bank said the job market has improved, consumer spending has increased and inflation is under control despite higher oil and gas prices. But the Fed warned that the housing market remains “depressed” and that the economy remains vulnerable to “strains” in global financial markets. As expected, the FOMC voted to keep interest rates near zero. Also, J.P. Morgan Chase announced quarterly dividend hike and surged 7%. The Nasdaq rose 1.9% to close at 3,040 for the first time since Dec. 11, 2000 during the dot-com boom. Intel surged 1.87% after reports that the co. is planning an Internet-based television service. Apple hit a record $568.18 and finished at $568.10, up 2.9%, after Jefferies raised its price target and research group IDC hiked its outlook for tablet-computer shipments for 2012. Also, Micron jumped 5.1% as Pacific Crest Securities raised its price target, arguing that the company is poised to benefit from a turnaround in the DRAM memory-chip market. Citigroup and MetLife dropped in the evening trade after the Federal Reserve listed the companies among the financial institutions that have failed its recession-scenario stress tests. Implied volatility inched lower o huge trading volumes.
Wednesday, March 14, 2012
Rallied on the Fed’s stress tests results
Stocks rallied to close sharply higher on news that most of the nation’s largest banks have passed the government’s latest test of their financial health. Retail sales rose 1.1% in February, raising hopes that higher gas prices will not dent consumer spending. The central bank said the job market has improved, consumer spending has increased and inflation is under control despite higher oil and gas prices. But the Fed warned that the housing market remains “depressed” and that the economy remains vulnerable to “strains” in global financial markets. As expected, the FOMC voted to keep interest rates near zero. Also, J.P. Morgan Chase announced quarterly dividend hike and surged 7%. The Nasdaq rose 1.9% to close at 3,040 for the first time since Dec. 11, 2000 during the dot-com boom. Intel surged 1.87% after reports that the co. is planning an Internet-based television service. Apple hit a record $568.18 and finished at $568.10, up 2.9%, after Jefferies raised its price target and research group IDC hiked its outlook for tablet-computer shipments for 2012. Also, Micron jumped 5.1% as Pacific Crest Securities raised its price target, arguing that the company is poised to benefit from a turnaround in the DRAM memory-chip market. Citigroup and MetLife dropped in the evening trade after the Federal Reserve listed the companies among the financial institutions that have failed its recession-scenario stress tests. Implied volatility inched lower o huge trading volumes.
