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U.S. stocks mixed despite bullish FOMC words; Dow up 0.12%

Published 03/14/2012, 04:34 PM
Updated 03/14/2012, 04:36 PM
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Investing.com - A spate of profit taking resulted in a mixed close for U.S. equities despite bullish words from the Federal Reserve and solid domestic economic data.

 At the close of U.S. trade, the Dow Jones Industrial Average gained 0.12%, the S&P 500 gave back 0.12%, while the Nasdaq Composite eased higher by 0.03%.

The S&P 500 broke a 5 day winning streak today, after the benchmark soared to the highest level since June, 2008, on profit taking.

Sparking the risk on trade, the FOMC stated late yesterday that global financial strains have lessened and the labor market has improved sparking the rally in worldwide equities.

The Federal Reserve added that 15 of the U.S. largest banks maintain enough reserves to weather a recession scenario further fuelling the bullish sentiment.

However, the FOMC softened its bullish stance by stating that the unemployment rate remains elevated and significant downside risks exist

Fitch Ratings increased Greece’s long term foreign and local currency issuer default ratings to B- with stable outlooks due to the 95% participation rate in the debt swap.

Meanwhile, in Italy, a bond auction sold EUR6 billion with borrowing costs on its three year debt falling to the lowest level since October, 2010 further adding to the bullish session.

In Chinese news, the country is easing restrictions on lending capacity at three of the nations four largest banks.

This move was triggered after China’s exports, retail sales and industrial production declined in the first two months of 2012.

Potential future regulations led to an insurance sell off with Metlife giving back 4.8% and Prudential falling 2% on the session.

Apple gained another 2.5% after having its share price estimate increased to USD720.00 from USD550.00 at Morgan Stanley.

Forex dealer, FXCM surged 17% after beating analyst’s fourth quarter sales and profit estimates.

Pacific Sunwear gave back 14% after the teen clothing retailer forecasted a steeper than projected loss for the first quarter.

At the close of European trade, the EURO STOXX 50 gained 0.70%, France's CAC 40 added 0.40%, while Germany’s DAX advanced 1.19%.  Meanwhile, in the U.K. the FTSE 100 traded down by 0.18%.

Investors are awaiting U.S. producer price inflation, long term securities transaction and New York manufacturing activity as well as ECB’s monthly bulletin on Thursday.




 

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