Rally Could Be Short-Lived
by Jun 18th 2013 10:00PM
Updated Jun 18th 2013 10:35PM
Stocks moved up strongly for the second day in a row as investors continued to hope that the Fed would hold off on tapering its $85 billion monthly program when it gives an update on its interest rate and policy views tomorrow. The Dow Jones Industrial Average finished up 138 points, or 0.9%, on the news. The Fed's upcoming actions have been the market's obsession since the Open Market Committee's minutes were released a month ago, revealing that several Fed members were in favor of reducing the bond-buying program. That single-minded focus will hopefully come to an end after the Fed speaks tomorrow at 2 p.m.
Elsewhere, housing reports disappointed as May housing starts came in at 914,000, beneath estimates of 950,000, while building permits missed projections by 9,000, coming in at 974,000. Still, housing starts were up 7% from April's total, while building permits fell slightly from a month ago. The Consumer Price Index continued to show that inflation is well under control as prices went up just 0.1% in May vs. expectations of 0.2%.
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