After yesterday’s news from the Fed, markets stalled slightly on Thursday and ended mostly lower. Investors are still taking in the announcement as well as several reports of economic data released today. It was reported that jobless claims edged higher last week by about 15,000, but remained below the expected number. Home sales in the US rose surprisingly to the highest level in over six years – a climb of 1.7% brings purchases to a 5.48 million annual rate. In corporate news, Rite Aid (RAD) soared over 20% after raising its profit outlook while ConAgra (CAG) slid 4% by falling short of income expectations. Tesla Motors (TSLA) hit a record at one point today after its price target was increased by Deutsche Bank. Even though September is typically a bad month for markets, stocks are heading towards what could be the best month in a couple of years.
Word on the Street
- US home resales reach 6-1/2 year high and other statistics signal modest growth.
- Markets in Asia and Europe jolted by Fed decision, bond yields drop.
- Groupon (GRPN) hits a new 52-week high on an analyst upgrade.
- Beanie Babies creator Ty Warner pleads guilty to tax evasion.
- The IMF urges US policymakers to bury their differences and come together on the budget issue.
- US 30-year mortgage falls from last week to 4.50%.
- Amarin’s (AMRN) Fish Oil Treatment Might Go Belly Up Soon.