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Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts
Thursday, 18 July 2013
Wednesday, 17 July 2013
Stocks are up, and greed is back
CNNMoney's Fear and Greed Index has swung from fear to greed in just a week.With stocks back in record territory, investors are getting greedy again.
CNNMoney's Fear & Greed Index shot back into Greed mode Thursday for the first time since late May, as the Dow and S&P 500 rallied above their record closing highs from May, and the Nasdaq climbed to its highest level since October 2000.
The return of the bull comes as investors have started feeling more confident about future policy decisions from the Federal Reserve.
During a speech in Massachusetts Wednesday evening, Fed chairman Ben Bernanke reassured investors that a "highly accommodative monetary policy for the foreseeable future is what's needed in the U.S. economy."
Related: Rising rates won't end the stock market party
Investors grew jittery in late May, after Bernanke hinted that the central back could begin pulling back on its $85 billion-per-month bond buying program later this year.
Stocks began a choppy and volatile descent as the thought of no stimulus spooked investors. At the same time, the Fear and Greed Index swayed between fear and extreme fear.
But top central bankers, including the chairman, have been going to great lengths to calm investors, reiterating time and time again that any scaling back of stimulus will be tied to significant improvements in the economy. Those comments have helped both stocks and sentiment to rebound.
While it looks like stocks are headed back up, don't expect a smooth ride.
"We expect stock market gains to be accompanied by more volatility than experienced in the first half of the year," said Jeffrey Kleintop, chief market strategist at LPL Financial.
And more volatility also probably means more investor fear.
Posted in: Bernanke, bonds, fear, federal reserve, greed, index, interest rates, investors, sentiment, stocks, volatilityTuesday, 16 July 2013
Stocks: Holding onto record highs
Click chart for more premarket data
U.S. stock futures were little changed ahead of the open Tuesday, with the S&P 500 dipping slightly while the Dow Jones industrial average and Nasdaq were flat.
On Monday, the Dow and S&P 500 both rose about 0.2% to record closing highs on Monday.
U.S. investors will keep an eye on corporate earnings Tuesday as a number of big firms report quarterly results.
Goldman Sachs (GS ), Coca-Cola (CCE, Fortune 500) and Johnson & Johnson (JNJ, Fortune 500) will all announce earnings before the opening bell. Yahoo (YHOO, Fortune 500) will report its second quarter results after the market close.
Related: Fear & Greed Index
In economic news, the U.S. Bureau of Labor Statistics will publish the latest Consumer Price Index, the government's key measure of inflation, at 8:30 a.m. ET.
Cintas Corp (CTAS) was down in after-hours trading after narrowly missing analyst expectations for its fourth quarter earnings.
Investors were also looking ahead to further comments from the U.S. Federal Reserve chairman. On Wednesday, Bernanke will deliver his semi-annual testimony to Congress on monetary policy.
On the international front, European markets posted modest declines in morning trading.
Asian markets mostly ended with gains. The Shanghai Composite index added 0.3%, Tokyo's Nikkei jumped up by 0.6% after returning from a long-weekend, and the Hang Seng index was flat. 
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