Investors React to QE2 With Confidence to Send Dow to Highest Since 2008 (TSLA, PC)

A day after the Federal Reserve pushes all their chips into the pile, investors react with confidence causing markets to rally to new highs. The Dow rose over 200 points to it’s highest peak since 2008, and the broader S&P 500 and NASDAQ composite followed suit. The good news for stock investors came with bad news for the US dollar, as European nations reiterated their intentions to exit from the stimulus strategy. Government bonds in those nations took hits on the news. Gold had an overwhelming day, as well, as prices rose more than 4%. The seemingly great news overshadowed the spike in jobless claims last week, it’s highest level in two weeks. In corporate news, US-based car manufacturer Tesla (TSLA) announces they will sell a stake to electronics maker Panasonic (PC).

Word on the Street

• Stocks surge a day after the Fed announces their stimulus package to their highest level since 2008.
• The effects of QE2 are felt by other nations as government bonds in Europe take steep falls.
• The number of jobless claims skyrocketed last week after two weeks of declines.
• Mortgage giants Fannie Mae and Freddie Mac may cost taxpayers over $685 billion as the federal government continues to overhaul the housing industry.
• Tesla (TSLA), the battery-powered car manufacturer, sees shares rise after a deal to sell stake to Panasonic (PC).
• Earnings reports by Time Warner Cable (TWX) and DirecTV (DTV) show that wealthier families have managed to keep their cable and satellite subscriptions as less wealthy families cancel to make ends meet.
• The US dollar dipped against it’s competitors as the European Bank declared it would not enact another stimulus as the US has decided to do this week.
• The Energizer (ENR) Bunny may be running out of batteries as the once thriving company takes hits from wholesale competitors.

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