Stocks Hit Multi-Year Highs on Thursday After the Fed Pledges Action
The Federal Reserve announced on Thursday that it will purchase $40 billion of mortgage debt per month in Q3 easing to extend its holdings of long-term securities. Bernanke finally stepped up to say that the Fed would act until they see economic improvement, sending stocks up and bringing indices to the highest levels since 2007. In other news, the past week's jobs report said claims were higher than expected. The Producer Price Index for August climbed more than was expected for the month as well. Also surging in today's markets were metals with gold jumping 2% and silver 4% higher. Apple (AAPL) stocks hit another record high on a continued rise from Wednesday.After yesterday's talks of a deal between BAE Systems (BA) and European Aeronautic Defence (EAD), investors reacted negatively and shares dropped.
Word on the Street
- The Fed announced that it was ready to act until the economy improves.
- Jobless claims for the past week were up and gas costs rose, driving up wholesale prices by the most in three years.
- BPI is suing ABC News, Inc. for $1.2 billion worth of damages in making misleading statements.
- Shares of EADS (EAD) and BAE Systems (BA) tumbled after investors reacted warily to their talks of merger.
- The US' average 30-year mortgage rate is just above record lows, aiding to slight housing recovery.
- Apple (AAPL) hits a record high on Thursday after the Fed's announcements and their iPhone 5 release.
- Johnson & Johnson (JNJ) announces plan to hire CropScience's Sandra Peterson as the new CEO.
- Zynga (ZNGA) Top Executives and Creative Directors Depart in a Mass Exodus.
Published on Sep 13, 2012By InvestorGuide Staff