Markets rally on Chairman Bernane comments $KO:xnys
- Published: 18 July 2012
- Markets were volatile overnight but stocks rallied after a gloomy outlook from Federal Reserve Chairman Ben Bernanke. This then prompted traders to take the view that the Fed will eventually have to provide further stimulus
- Mattel jumped 9.7% after the stock beat earnings expectations overnight
- Markets were also encouraged by better than expected earnings data from Coca Cola and Goldman Sachs both rallying 1.58% and 0.31% respectively
- Scheduled to report on Wednesday are BAC, AXP, IBM, EBAY and YUM
- Intel however came out with disappointing news and confirmed to the market that its Q3 forecast would be lower. However investors took some solace in the fact that the downgraded forecast was not as bad as some had feared
- Leading the gains on the Dow was DIS, PFE, MRK and DD each rallying 3.11%, 2.12%, 1.94% and 1.64% respectively
- DOW +0.62%, S&P500 +0.74% and NASDAQ +0.45%
- USD was weaker on potential for further QE and the AUD is at 6 week highs
- Gold was weaker on Bernanke speech and Crude settled at USD89.00 p/b
