On Wednesday the Federal Reserve announced a new policy in order to keep recovery going in the jobs market and set further targets for unemployment and inflation rates. The bond-buying program includes new purchases of $45 billion worth of Treasurys. Bernanke also made comments that the economy would have a good year in 2013 as long as the White House can agree on a budget deal. After this news crude futures were boosted and US stocks made strong gains, with the S&P 500 reaching a seven-week high before settling back down by the end of the day. Costco (CSCO) saw its first quarter net surge 30% after reporting higher sales and Dolby Laboratories, Inc. (DLB) climbed 5.8% after announcing a one-time special $4 a share dividend. Also, due to lower fuel and food costs, US import prices marked the largest drop in five months. Import prices finally fell 0.9% after three consecutive months of gains.
Word on the Street
- The Fed reveals a new stimulus plan, sending the S&P 500 to a seven-week high.
- Berkshire Hathaway (BERK) announces a $1.2 billion repurchase of stock.
- Import prices in the US drop the most in five months due to lower food and fuel costs.
- Costco (CSCO) reports better sales and revenue from increased membership fees.
- Shares of Netflix (NFLX) rise despite launch of streaming service from Redbox.
- After a new bond-buying program is announced oil ends up near $87 a barrel.
- Deutsche Bank (DB) faces a tax evasion investigation.
- Sprint (S) in Talks to Acquire Rest of Clearwire (CLWR).