Stocks close mixed; Bernanke says economy should continue to improve
By: Kate Gibson | Markets Writer
U.S. stocks on Friday staged a mixed
finish after Federal Reserve Chairman Ben Bernanke said the U.S. economy
should continue to improve and reiterated the Fed's commitment to
keeping interest rates low.
"I still think this is a 'buy-on-the dip' equity market," said Terry Sandven, chief equity strategist at US Bank Wealth Management. "2014 is likely to be a transition year, driven more by earnings growth than Fed-driven liquidity and PE expansion," he added.
"A big issue as we go into earnings season later this month is will the GDP pickup of the fourth quarter carry over into earnings," said Ron Florance, deputy chief investment officer at Wells Fargo Private Bank
Hertz Global Holdings rose after CNBC cited sources familiar with the situation in reporting Carl Icahn had purchased 30 to 40 million shares of the car-rental company.
Ford Motor, General Motors, Toyota Motor and Chrysler Group reported December U.S. sales below Wall Street's estimates.
"I still think this is a 'buy-on-the dip' equity market," said Terry Sandven, chief equity strategist at US Bank Wealth Management. "2014 is likely to be a transition year, driven more by earnings growth than Fed-driven liquidity and PE expansion," he added.
"A big issue as we go into earnings season later this month is will the GDP pickup of the fourth quarter carry over into earnings," said Ron Florance, deputy chief investment officer at Wells Fargo Private Bank
Hertz Global Holdings rose after CNBC cited sources familiar with the situation in reporting Carl Icahn had purchased 30 to 40 million shares of the car-rental company.
Ford Motor, General Motors, Toyota Motor and Chrysler Group reported December U.S. sales below Wall Street's estimates.
| Name | Price | Change | %Change | ||
|---|---|---|---|---|---|
| DJIA | Dow Jones Industrial Average | 16469.99 | 28.64 | 0.17% | |
| S&P 500 | S&P 500 Index | 1831.37 | -0.61 | -0.03% | |
| NASDAQ | Nasdaq Composite Index | 4131.91 | -11.16 | -0.27% |
The Dow Jones Industrial Average added to its gains, with JPMorgan Chase pacing the index's rise.
The S&P 500 was little changed.
The technology sector was among those in decline, as was the Nasdaq.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell to trade below 14.
The S&P 500 was little changed.
The technology sector was among those in decline, as was the Nasdaq.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell to trade below 14.
Expert sees 3% growth in 2014
Bruce Kasman, JPMorgan chief economist, provides his outlook on the economy next year and what is likely to drive demand.
The decision to cut to $75 billion the
Fed's monthly bond buys did not signal any reduction in the central
bank's commitment to "maintain a highly accommodative monetary policy
for as long as needed," Bernanke told a gathering in Philadelphia. His eight-year tenure at the Fed ends at the end of January.
Richmond Fed President Jeffrey Lacker told a gathering in Baltimore that the Fed would continue to mull reduced stimulus as the labor market improves.
Separately, Fed Bank of Philadelphia President Charles Plosser said the central bank faces "immense" challenges as it starts to curb its monthly bond purchases.
On the New York Mercantile Exchange, crude-oil futures for February delivery fell $1.48 to $93.96 a barrel and gold futures for February advanced 1.1 percent to $1,238.60 an ounce.
The dollar gained against an index of other currencies, while the yield on the 10-year Treasury note held steady at 2.99 percent.
Sprint declined after Stifel Nicolaus cut shares of the wireless carrier to sell from hold. FireEye surged after buying Mandiant in a $1.05 billion deal that merges the providers of protection services against hackers.
On Thursday, stocks fell sharply as U.S. data had applications for jobless benefits fall to a monthly low and factory activity rising in December.
Richmond Fed President Jeffrey Lacker told a gathering in Baltimore that the Fed would continue to mull reduced stimulus as the labor market improves.
Separately, Fed Bank of Philadelphia President Charles Plosser said the central bank faces "immense" challenges as it starts to curb its monthly bond purchases.
On the New York Mercantile Exchange, crude-oil futures for February delivery fell $1.48 to $93.96 a barrel and gold futures for February advanced 1.1 percent to $1,238.60 an ounce.
The dollar gained against an index of other currencies, while the yield on the 10-year Treasury note held steady at 2.99 percent.
Sprint declined after Stifel Nicolaus cut shares of the wireless carrier to sell from hold. FireEye surged after buying Mandiant in a $1.05 billion deal that merges the providers of protection services against hackers.
On Thursday, stocks fell sharply as U.S. data had applications for jobless benefits fall to a monthly low and factory activity rising in December.
—By CNBC's Kate Gibson
0 σχόλια:
Δημοσίευση σχολίου
Ο σχολιασμός επιτρέπεται μόνο σε εγγεγραμμένους χρήστες