Fed Decides Not to Raise Rates (Again)

Markets boomed today in average volume trading. Although a late drop threatened to deliver a negative day for the Dow, an afternoon recovery reversed the trend. The index closed up 198.09 points to end the trading day at 17,779.52. The NASDAQ led the day in real gains, adding 65.54 points to close at 5,095.69. The S&P 500 was up as well, gaining 24.46 points to close at 2,090.35.

Fed Decides Not to Raise Rates (Again)

After conducting its latest two-day meeting, Fed Secretary Janet Yellin has announced that the bank won’t be raising interest rates. Citing a soft economy at home and weak employment numbers, the bank announced its decision today.
There is still one more meeting this year, in December, where the Fed could decide to raise the prime interest rate.

The prime rate affects everything from car loans to bank-to-bank borrowing and mortgages. The rate, which determines how much it costs for a bank to borrow money from another bank, trickles its way down into nearly every financial transaction in the country. For instance, the prime rate has been known to affect credit card interest rates and the yield on savings accounts.

The prime rate has been set to 0% since the financial meltdown of 2008. This marks the longest stretch in history that the prime rate has been set to zero. The Fed has long said that they won’t be raising interest rates until they’re sure that America’s finances are on firm footing, but some analysts are getting impatient for the Fed to make a change.

Akamai (AKAM) Drops on Soft Guidance

Despite the fact that Akamai (AKAM) exceeded expectations in their Q3 earnings report, the market saw shares of the stock drop today. Investors were upset over the guidance numbers, which seemed soft for the upcoming quarters. That’s no guarantee that Akamai won’t continue to overperform, in fact it makes it more likely, but investors were quick to jump ship anyway. In trading today, Akamai fell nearly 17%, or 12.73 points, to close the day at $62.82 per share.

Genworth Financial (GNW) Surprises Investors on Earnings

Genworth FInancial (GNW) surprised investors and analysts today with a positive earnings report. The market has been soft on Genworth’s outlook, but the Q3 earnings report told a different story. The company is growing across the entire business, with revenues up nearly 8%. In trading today, Genworth rose 10.25%, or 0.49 points, to close the day at $5.27 per share.
Published on Oct 28, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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