On Wednesday US indices traded higher for a second day in a row led by techs and two housing reports showing improvements. All three major averages–the Dow Jones, S&P 500 and Nasdaq are back in the positive for July. Global markets including Asian stocks continue to fall after Bernanke’s second day of testimony. The Fed reported in its “Beige Book” that the economy expanded modestly in June and early July. Bank of America (BAC) is ready to increase their stimulus efforts. Capitol One Group (COF) announced that it will pay $210 million to settle charges about misleading customers to make certain card purchases. The US dollar dropped slightly lower to the euro and decreased against the Japanese yen as well.
Word on the Street
- Bank of America (BAC) while trying to modify troubled loans, offers mortgage cuts but gets unexpected response.
- Asian stocks fall after Federal Reserve’s Bernanke dimmed hopes for future economic stimulus.
- Capital One Financial (COF) to pay $210 million in fines to resolve charges by banking regulators.
- The Fed reports slowed growth and hiring in parts of the US, a shift from the previous report.
- AT&T (ATT) to change price plans for shared data, but unlike Verizon (VZ) will continue to offer current plans as well.
- Auto loan terms loosen for buyers as the federal funds rate lies close to zero percent.
- The long-term unemployed continue to pull down the economy–extended benefits need to be cut.
- TD Ameritrade (AMTD) Stock Lower on Earnings.