"Beige Book" Forecasts a Growing Economy; Low Risk of Inflation Over 2%
Stocks end the day up after the release of the Fed's "beige book" which suggests that the economy is gaining after a rough winter. The growing economy is expanding due to increased consumer spending and an improving labor market. Yahoo's (YHOO) shares jumped up 11% yesterday mainly due to large revenue gains made by Alibaba, a popular Chinese e-commerce company. Alibaba experienced a 66% surge in revenue in the first quarter and since Yahoo owns 24% of the company, they were rewarded by Alibaba's massive gain. In a speech to the Economic Club of New York, the chair of the Federal Reserve Janet Yellen said that she believes that there is a very low risk of inflation rate rising above 2% in the near future.But she does mention that the inflation rate could substantially rise above 2% sometime down the road.
Word on the Street
- Bank of America (BAC) reports a $276 million Q1 loss.
- Google Glass (GOOG) sells out of one version.
- BlackBerry (BBRY) has ambitious plans for next smartphone.
- Yellen believes that the stimulus is still needed.
- Will Alibaba's IPO rival Facebook's (FB)?
- Mozilla appoints Chris Beard as interim CEO.
- Twitter (TWTR) up on acquisition of longtime partner.
Published on Apr 16, 2014By InvestorGuide Staff