“1:00 pm : The major equity averages are up with varied gains. Heavyweight Apple has been a leader, but many market participants remain on edge as they await the more from the Fed following the latest FOMC statement.
Apple (AAPL 614.52, +54.24) — the largest stock by market cap — has rallied higher after it had set a monthly low yesterday. The stock’s snapback comes in response to the company’s latest quarterly report, which featured earnings that easily surpassed what Wall Street had expected. That has helped lift the overall Tech sector to a near 3% gain, and boost the Nasdaq to a 2% gain after the Tech-rich Index had lagged during the prior day of trade.
The positive response to Apple’s earnings has been strong enough to overshadow disappointing durable goods orders numbers that featured a 4.2% drop in overall orders and a 1.1% decline in orders less transportation items. Both were worse than what had been expected.
The latest FOMC Policy Statement was little changed from recent versions in that it stated the economy continues to expand at a moderate pace, but low resource utilization and a subdued outlook for inflation over the medium run are expected to warrant exceptionally low levels of the fed funds rate at least through late 2014. Although that report is out of the way, the FOMC’s forecast will draw plenty of attention when it is released at 2:00 PM ET. Fed Chairman Bernanke follows it with a press conference at 2:15 PM ET. DJ30 +69.63 NASDAQ +60.40 SP500 +16.22 NASDAQ Adv/Vol/Dec 1755/865 mln/685 NYSE Adv/Vol/Dec 2155/335 mln/755
12:35 pm : Action among stocks has turned somewhat choppy in response to the latest FOMC statement, but the major equity averages continue to sport impressive gains.
The latest statement from the FOMC indicates that the economy continues to expand at a moderate pace and that even though the unemployment rate has declined, it remains elevated. Still, the committee believes that the unemployment rate will decline gradually toward levels that it judges to be consistent with its dual mandate.
The FOMC also noted that inflation has picked up somewhat, but it maintains a subdued outlook for inflation over the medium run. Accordingly, the FOMC anticipates exceptionally low levels of the fed funds rate at least through late 2014.
Still to come is the FOMC’s forecast at 2:00 PM ET. It will be followed by Fed Chairman Bernanke’s press conference at 2:15 PM ET. DJ30 +61.84 NASDAQ +59.13 SP500 +14.75 NASDAQ Adv/Vol/Dec 1775/790 mln/645 NYSE Adv/Vol/Dec 2180/305 mln/720
12:00 pm : Stocks are coasting along ahead of the latest FOMC statement, which is due at the bottom of the hour. No changes to the target interest rate or its outlook are expected, but the verbiage will likely receive close scrutiny by those looking for clues about the Fed’s mindset ahead of the FOMC forecast at 2:00 PM ET. Market participants will also pay close attention to the comments made by Fed Chairman Bernanke during his press conference at 2:15 PM ET.DJ30 +69.85 NASDAQ +55.77 SP500 +14.04 NASDAQ Adv/Vol/Dec 1760/690 mln/635 NYSE Adv/Vol/Dec 2165/265 mln/690
11:30 am : Stocks have started to tick higher after recently returning to their opening levels. Despite the strong gains among stocks today, Treasuries have traded with only modest losses. In fact, the yield on the benchmark 10-year Note is only back at the 2.00% threshold. Results from an auction of 5-year Notes have just hit the newswires, but there hasn’t yet been any knee-jerk reaction among Treasuries.DJ30 +79.55 NASDAQ +57.75 SP500 +14.65 NASDAQ Adv/Vol/Dec 1740/570 mln/605 NYSE Adv/Vol/Dec 2120/225 mln/725
11:00 am : Stocks have drifted lower in recent trade, but the broad market continues to boast a 1.0% gain while the Nasdaq sits on a gain of nearly 2%. The Dow is also up today, but its less impressive gain comes after blue chips had helped it outperform in the prior session.
Financials have fallen to the flat line over the past hour of action. The sector benefited from a strong, broad bid in the early going, but it has since been undermined by renewed weakness in bank stocks. However, insurance outfit Aflac (AFL 44.70, +2.70) has been a strong performer following its latest quarterly report, which featured better-than-expected results for its bottom line. DJ30 +77.35 NASDAQ +57.40 SP500 +14.02 NASDAQ Adv/Vol/Dec 1835/470 mln/510 NYSE Adv/Vol/Dec 2275/190 mln/555
10:35 am : Oil prices were just shy of $104 per barrel in the minutes that preceded the latest weekly inventory report, which showed a build of 3.98 million barrels when a build of 2.70 million barrels had been widely anticipated. Prices have since moved down to $103.60 per barrel, which leaves them flat for the day.
Natural gas prices continue to trade near $2.00 per MMBtu, making for a 1.4% gain. Natural gas weekly inventory numbers are due tomorrow.
Gold has traded with a modest loss all morning. It was last quoted at $1639.50 per ounce, down 0.3% for the day. Silver was up in early pit trade, but it has since traded down to $30.75 per ounce, which makes it unchanged for the session. DJ30 +79.58 NASDAQ +64.20 SP500 +15.75 NASDAQ Adv/Vol/Dec 1825/325 mln/470 NYSE Adv/Vol/Dec 2290/135 mln/475
10:00 am : Stocks have eased off of their morning highs, but overall gains remain strong. That said, the Dow, which outperformed in the prior session, is trading with a gain that is less than half of what the Tech-rich Nasdaq has achieved.
Tech stocks are out in front of the rest of the market. The sector is currently up a little more than 3% as computer hardware stocks and related plays rally in response to the latest report from Apple (AAPL 615.25, +54.97). The action comes in contrast with that of the prior session, when Tech stocks lagged for virtually the entire session and even settled with a 0.6% loss. DJ30 +91.66 NASDAQ +67.29 SP500 +17.06 NASDAQ Adv/Vol/Dec 1785/124 mln/385 NYSE Adv/Vol/Dec 2345/70 mln/345
09:45 am : The major equity averages are off to a positive start to today’s trade. The Nasdaq is looking especially strong after it had lagged in the prior session.”
If you enjoy the content at iBankCoin, please follow us on Twitter
