Stocks retreated, ending the longest advance by the Dow in more than 16 years and containing the S&P 500 just as it neared its record close, on weaker-than-expected inflation data. The University of Michigan-Thomson Reuters index fell to an initial March reading of 71.8 from a final 77.6 in February. Consumer prices rose 0.7% in February, the highest gain since June 2009, as gasoline price spiked 7.2%, remaining the main reason for the overall price increase. A gauge of manufacturing in the New York region that was little changed in March. Industrial production rebounded in February, rising 0.7% after a 0.1% drop in January. Bank of America rose 3.8% after the Federal Reserve OK'd its share-buyback plan. J.P. Morgan Chase fell 1.9% and Goldman Sachs Group gained 0.5% after the Fed approved their capital plans but also asked them to resubmit new ones in six months. Apple rose 2.6% as several analysts that cover Apple remained upbeat about the co.’s mobile-phone prospects even with the launch of the Galaxy S4. Groupon spiked 6.1% after a positive endorsement from noted Legg Mason investor, who noted the company has $1.2 billion in cash and no debt. This week invetros will focus on the FOMC meeting, which is expected to keep interest rates near zero and continue its quantitative easing program. Also, news from Europe will make investors worry as European Union unveiled a €10 billion plan early Saturday to rescue Cyprus' outsized banking sector and avoid a default.
Monday, March 18, 2013
Europe and Fed meeting in focus
Stocks retreated, ending the longest advance by the Dow in more than 16 years and containing the S&P 500 just as it neared its record close, on weaker-than-expected inflation data. The University of Michigan-Thomson Reuters index fell to an initial March reading of 71.8 from a final 77.6 in February. Consumer prices rose 0.7% in February, the highest gain since June 2009, as gasoline price spiked 7.2%, remaining the main reason for the overall price increase. A gauge of manufacturing in the New York region that was little changed in March. Industrial production rebounded in February, rising 0.7% after a 0.1% drop in January. Bank of America rose 3.8% after the Federal Reserve OK'd its share-buyback plan. J.P. Morgan Chase fell 1.9% and Goldman Sachs Group gained 0.5% after the Fed approved their capital plans but also asked them to resubmit new ones in six months. Apple rose 2.6% as several analysts that cover Apple remained upbeat about the co.’s mobile-phone prospects even with the launch of the Galaxy S4. Groupon spiked 6.1% after a positive endorsement from noted Legg Mason investor, who noted the company has $1.2 billion in cash and no debt. This week invetros will focus on the FOMC meeting, which is expected to keep interest rates near zero and continue its quantitative easing program. Also, news from Europe will make investors worry as European Union unveiled a €10 billion plan early Saturday to rescue Cyprus' outsized banking sector and avoid a default.
