Stocks ended on a high note today, with the Dow Jones and S&P 500 setting new record highs. During the Senate Banking Committee meeting, Yellen gave a glimpse of what is to come under her leadership as chair of the Federal Reserve. Speculations have been made that investors should be wary of long term bonds and focus more on short term bonds as long term bond yields are expected to rise. Mortgage rates continue to rise as the 30-year rate jumped up to 4.35% and the 15-year rate increased to 3.35%. Government budget cuts are once again leading to more people being laid off. Lockheed Martin (LMT) announced that they are forced to cut 4,000 jobs due to the government spending less on defense than it has in the past. President Obama is making amendments to the new health care law, allowing Americans whose health insurance plans were cancelled to re-enroll and maintain coverage for the next year. Cisco Systems (CSCO) had a rough day after its shares fell 12% following lower than expected first quarter earnings.
Word on the Street
- Under Armour (UA) finalizes is first acquisition, now owns MapMyFitness.
- Jobless claims continue to fall, but only slightly.
- Lockheed Martin suffers from the government spending less on defense.
- U.S. trade gap widens as Americans continue to purchase more imported goods.
- Yellen decides to continue the Fed’s low interest rates.
- Adjustments have been made to the new health care law.
- Chegg (CHGG) IPO bombs on first day.