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Dow, S&P end at record highs after Fed's stimulus cut
Yahoo Finance ^ | 12/18/13 | Angela Moon - Reuters

Posted on 12/18/2013 1:16:37 PM PST by NormsRevenge

NEW YORK (Reuters) - The Dow and the S&P 500 closed at all-time highs on Wednesday after the Federal Reserve announced a small reduction in its stimulus program, confirming that the U.S. economy was on firm footing.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Front Page News; Government; Your Opinion/Questions
KEYWORDS: bernanke; dowjones; federalreserve; stimulus
Dow Jones .. rose 293.03 .. 1.85 percent.. 16,168.29

S&P 500 gained 29.65 .. 1.66 percent.. 1,810.65

1 posted on 12/18/2013 1:16:37 PM PST by NormsRevenge
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Break out the champagne and cigars, Wall Street!

Merry Christmas!


2 posted on 12/18/2013 1:17:23 PM PST by NormsRevenge (Semper Fi)
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To: NormsRevenge

“confirming that the U.S. economy was on firm footing.”

Oh really??


3 posted on 12/18/2013 1:17:25 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: NormsRevenge

I am always baffled at how the MSM attributes a cause to why the stocks go up or down every single day and almost none of them have anything to do with how companies are performing.


4 posted on 12/18/2013 1:19:46 PM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
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To: driftdiver

I know, right.


5 posted on 12/18/2013 1:20:07 PM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
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US Federal Reserve pulls back on stimulus effort

http://www.bbc.co.uk/news/business-25436982

The US Federal Reserve has announced a slowdown in its effort to boost the US economy.

The central bank said it planned to scale back its $85bn (£51.8bn) a month bond buying programme by $10bn a month.

Stimulus of this kind is designed to lower interest rates and boost economic activity

The Fed’s governing committee cited stronger job growth as a reason for the decision to pullback its programme of bond buying.

The announcement followed a two-day meeting in Washington DC.

—snip—

‘Symbolic’

US markets cheered the news.

The Dow Jones surged to close up 292.71 points, or 1.84%. Both the Nasdaq and S&P 500 indexes were up over 1% as well.

That is partially because, while significant, the amount of the pullback in bond-buying was slightly less than expected.

“Ultimately this a very small amount - it’s symbolic rather than more substantive,” Steve Wood, chief market strategist at Russell Investments, told the BBC.

—snip—


6 posted on 12/18/2013 1:20:09 PM PST by NormsRevenge (Semper Fi)
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“The takeaway from this is that while the Federal Reserve might be reducing the dosage of the antibiotic, they’re not going to be discharging the patient anytime soon.”

and when they do, it’ll be straight into the arms of Obamacare.


7 posted on 12/18/2013 1:21:15 PM PST by NormsRevenge (Semper Fi)
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To: driftdiver

Uncle Ben didn’t want to go out as the GRinch that stole Christmas.


8 posted on 12/18/2013 1:22:26 PM PST by NormsRevenge (Semper Fi)
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To: NormsRevenge

WTF?

In the past, mere rumors of “tapering” cratered the markets.


9 posted on 12/18/2013 1:28:06 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: NormsRevenge
Can I fix it for ya NR??

confirming that the U.S. economy was on firm footing Wall Street's pusher is still dealing

There we go......

10 posted on 12/18/2013 1:29:26 PM PST by Notary Sojac (Mi tio es enfermo, pero la carretera es verde!)
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To: DuncanWaring
It's a different day. Wall Street liked the bond buying when Obama looked like he would socialize the country.

But now liberals are flailing. And thi is why Bernanke is now tapering. Wall Streets views all this as a good thing for recovery.

11 posted on 12/18/2013 1:31:44 PM PST by what's up
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To: Notary Sojac

lol.. It’s always ‘snowing’ somewhere on Wall Street.


12 posted on 12/18/2013 1:32:11 PM PST by NormsRevenge (Semper Fi)
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To: DuncanWaring

The markets are relieved the Fed is making a very small cut, while suggesting rates would remain at their ultra-low levels even longer than previously stated.

In other words, the money printing continues for the indefinite future, at $75 BILLION each month. The party goes on.


13 posted on 12/18/2013 1:32:53 PM PST by Deo volente (God willing, America shall survive this Obamanation.)
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To: DuncanWaring
In the past, mere rumors of “tapering” cratered the markets.

The drunks were scared that the bar would be closed. Instead the new bartender just locked away the Everclear, keeping the whiskey, gin, rum and vodka flowing. DTs averted for now. I still don't want to be on the road when they are finally told that the bar is closed and they have to drive home.

14 posted on 12/18/2013 1:33:28 PM PST by KarlInOhio (Everyone get online for Obamacare on 10/1. Overload the system and crash it hard!)
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To: NormsRevenge

yeah, just ask Kudlow!


15 posted on 12/18/2013 1:34:20 PM PST by Notary Sojac (Mi tio es enfermo, pero la carretera es verde!)
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To: NormsRevenge

It was fun to watch. The averages, DOW, etc. actually started off down slightly today. I was checking my own stuff when Ben’s mush showed up on TV. As soon as he started talking the whole shebang started climbing. The Dow actually closed about 272 but coasted up a bit more as all the weegy boards got toted up. Missing from todays happiness is that Monday and Tuesday were nice up days for many equities. Tuesday was actually a bigger X2 day for me than today. I was kind of hoping Beranky actually had something to say-—can you imagine how much good that would do?


16 posted on 12/18/2013 1:34:35 PM PST by cherokee1 (skip the names---just kick the buttz)
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To: NormsRevenge

Looks like 2013 starts and ends with a DJ +300 point day.


17 posted on 12/18/2013 1:34:50 PM PST by Attention Surplus Disorder (At no time was the Obama administration aware of what the Obama administration was doing)
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To: Notary Sojac

/rimshot


18 posted on 12/18/2013 1:38:47 PM PST by NormsRevenge (Semper Fi)
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To: cherokee1

last I had looked it was barely above water, a couple hours later, booom.. we’ll take it..


19 posted on 12/18/2013 1:40:11 PM PST by NormsRevenge (Semper Fi)
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To: NormsRevenge

“US markets cheered the news.”
So what is the deal here?
When the FED says they will not stop pumping money into the market, stocks go up.
When the FED says they will reduce the amount they are pumping into the economy, stocks go up.
I see a problem here. The market is based on a false economy.
There, I said it.
Just like there is NO inflation, according to the media propaganda thugs.
OH REALLY? Don’t these people go to the grocery store?
Oh yea, they have so much money they have someone take care of the little issues like buying food for the rulers.
Price is more, quantities are less. The new retail scam.


20 posted on 12/18/2013 1:50:45 PM PST by 9422WMR (: " Tolerance is the virtue of a man who has no convictions".)
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To: NormsRevenge

Meanwhile in the real world, the shares of Ford and GM went down today, with Ford collapsing more than 6%, due to the company’s lower-profit warnings for next year.

So, the automobile companies are expected to have a bad 2014, and the health-insurance companies can’t do well either since so few ObamaCare registrations are being recorded. Which to the Fed apparently means, happy days are here again.


21 posted on 12/18/2013 1:52:45 PM PST by Bluestocking
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To: NormsRevenge
Wall Street cheers as they find out the helicopter drops will continue "well beyond" the original 6.5% unemployment figure cut-off as previously planned, removing worries from money-manipulators that as the unemployment figures drop further(as thousands drop off the radar thru attrition/participation rate)they and their schemes will not be curtailed.

...big wheel keep on turn'n...gravy-train keep'on roll'in!

Merry Christmas Holiday!,

...from Ben's Family to Yours Ben's business ass ociates and their families!

...as for the rest of you...

"If they'd rather die, then they had better do it...and decrease the surplus population"

22 posted on 12/18/2013 2:00:53 PM PST by RckyRaCoCo (Shall Not Be Infringed)
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To: NormsRevenge

Fed tapering is now views as proof that the economy is on a firm footing? Maybe I am old school, but I always look to employment, economic growth, productivity. Watching the Fed’s actions for indications about the strength of the economy is kind of like seeking your friend’s opinion about how pretty a girl is. USE YOUR OWN EYES!


23 posted on 12/18/2013 2:01:10 PM PST by fhayek
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To: Bluestocking
Meanwhile in the real world, the shares of Ford and GM went down today, with Ford collapsing more than 6%, due to the company’s lower-profit warnings for next year.

Ah, Ford...

14 new product launches total i.e. Mustang, F150, Edge, etc. and the cost for tooling / plant will bite into it....

24 posted on 12/18/2013 2:08:10 PM PST by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
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To: Deo volente

I’ve been assured all that Fed stuff is A-OK. Right here on FR.


25 posted on 12/18/2013 2:09:52 PM PST by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
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To: DuncanWaring

This “tapering” is like promising to go on a diet where you have been eating 10 chocolate cakes a week but you promise to “taper” it down to eating 9 chocolate cakes a week.


26 posted on 12/18/2013 2:11:13 PM PST by Flick Lives (Got a problem with the government? Have a complaint. Get a free IRS audit!)
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To: NormsRevenge

They told you to sell you should have bought what were you thinking.


27 posted on 12/18/2013 2:12:58 PM PST by gotribe (Vladimir Putin is MY President)
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To: what's up
It's a different day. Wall Street liked the bond buying when Obama looked like he would socialize the country. But now liberals are flailing. And thi is why Bernanke is now tapering. Wall Streets views all this as a good thing for recovery.

A more "market" type comment...

The markets hate uncertainty. We now have a 2 year budget even though we think it stinks, it denotes Fiscal Normalcy ( of sorts ). Now Helicopter Ben denotes slight tapering, which could be construed as Monetary Normalizing. The 2 are the exogenous forces that could effect their ability to do business. These are at least on the surface, minimized.

With that said the drinks will flow, to you and I it is a form of insanity with all the other exogenous factors, but to them it is now party on...

28 posted on 12/18/2013 2:14:18 PM PST by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
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To: taildragger
to you and I it is a form of insanity

However, you just pointed out why it is not so insane (normalizing, etc.)

I have seen how over the last 5 years when Obama fails Wall Street rejoices. This happened with the failure of cap and trade, extension of Bush tax cuts, failure to close Guantanamo, even gun control...and now Obamacare.

Makes sense to me.

29 posted on 12/18/2013 2:20:40 PM PST by what's up
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To: 9422WMR
Just like there is NO inflation, according to the media propaganda thugs.

Most of the new money is in the stock market. When the market does tank then the money goes to the stores. And the lenders. And the car lots. Etc.

30 posted on 12/18/2013 2:21:39 PM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINEhttp://steshaw.org/economics-in-one-lesson/)
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To: driftdiver

My thoughts exactly. A $10 billion dollar a month cut means the politically connected are STILL getting $75 billion per month. And I seriously doubt that printed $10 billion will vanish out of the bond buying nonsense. Most likely it will end up propping up some other part of the stock market.


31 posted on 12/18/2013 2:47:05 PM PST by Organic Panic
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To: NormsRevenge
Sometimes, things don't make sense.

Most of my net worth is in equities (80% U.S., 15% Asia, 5% other), so I did very well today. And I've done quite well during Obama's Presidency. Why, I don't know. Obama gets no credit from me; as far as I'm concerned, my financial success under his hegemony has nothing to do with his policies.

The recent run-up in stock prices, if anything, makes me more cautious. Time to take some profits, and build up some cash?

32 posted on 12/18/2013 3:00:22 PM PST by southernnorthcarolina ("The power to tax is the power to destroy." -- Chief Justice John Marshall, 1819)
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To: NormsRevenge

Initial reaction was a steep drop in the DOW, I wouldn’t be surprised if the FED bought that whole rally...a gift to the incoming crop duster.


33 posted on 12/18/2013 3:03:27 PM PST by RS_Rider (I hate Illinois Nazis)
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To: driftdiver

There are other reasons to cut the bond buying.
1. They can’t afford to keep borrowing for welfare AND buying their debt, so now they’ll only borrow to feed people.
2. You can’t have a fifth “recovery summer” and have bailouts and be taken seriously.
3. Tapering off the bond buying lets them say the economy recovered a year after Obama’s re-election.


34 posted on 12/18/2013 3:12:51 PM PST by tbw2
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To: southernnorthcarolina

SEll everything, move to Mars.

I don’t know. Just remember, don’t panic.

Jellystone could erupt at any time.. Or not.


35 posted on 12/18/2013 3:16:20 PM PST by NormsRevenge (Semper Fi)
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To: NormsRevenge
SEll everything, move to Mars.

I don’t know. Just remember, don’t panic.

Jellystone could erupt at any time.. Or not.

Not me. I got off margin a few weeks ago, and I might go to 10-15% cash, or maybe even buy some physical gold. But my bias remains long in equities. Every instinct tells me that stock prices shouldn't be going up, but they are, and I'm not going to throw myself in front of the train.

36 posted on 12/18/2013 3:43:20 PM PST by southernnorthcarolina ("The power to tax is the power to destroy." -- Chief Justice John Marshall, 1819)
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To: NormsRevenge

Thank you, don’t forget to tip your waitress, I’ll be here all week!!


37 posted on 12/18/2013 4:13:50 PM PST by Notary Sojac (Mi tio es enfermo, pero la carretera es verde!)
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