Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Dow, NASDAQ, S&P, and TSX Rally As Fed Minutes Indicate Another Round of Stimulus 0 comments
    Oct 13, 2010 10:45 AM | about stocks: KG, MYGN, GMCR, ARUN, GPN, EA, FAST, KATFF, SGQRF

    US stocks finished in the black as minutes from the latest Fed policy meeting indicated another round of monetary easing.

    “Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate, or if inflation continued to come in below levels consistent with the FOMC’s dual mandate, it would be appropriate to provide additional monetary policy accommodation,” the Fed’s Open Market Committee said in the minutes.

    Since the Fed’s target interest rate is at its lowest possible level, the Fed will probably buy more treasuries and influence inflation expectations to stur growth.

    The Fed also said that the U.S. economy will grow slower than forecasted in the second half of 2010 and next year.

    In addition, retail sales data was released today by the International Council of Shopping Centers.  For the week ending October 9, retail sales increased 0.8% from the prior week and 2.6% on a year-over-year basis.  A separate retail sales reading from the U.S. Department of Commerce will be released on Friday.

    King Pharmaceuticals (NYSE:KG) surged 39% after Pfizer put in a $3.6 billion bid for the company.  At current prices, the company is valued at $3.53 billion.

    Myriad Genetics (NASDAQ:MYGN), OfficeMax (NYSE:OMX), Green Mountain Coffee Roasters (NASDAQ:GMCR), and Aruba Networks (NASDAQ:ARUN) were other big gainers, advancing by 9%, 8.8%, 7.4%, and 7.1%, respectively.

    Large decliners include Global Payments (NYSE:GPN), Electronic Arts (NASDAQ:ERTS) and Fastenal (NASDAQ:FAST), which declined 8.3%, 5.5%, and 4.4%, respectively.

    The S&P, DOW, and NASDAQ, rallied by 0.5%, 0.3%, and 0.8%, respectively.


    Crude oil futures edged downwards by roughly 0.4%, to trade at $83.41 per barrel.  Copper edged upwards slightly by about 0.1%, while gold and silver futures declined 0.3% and 0.1%, respectively.

    Canadian markets

    The S&P/TSX index gained roughly 0.3% to trade at the 12,576 level.

    Five of the eight Canadian sector indices posted gains, with the telecom sector leading the way with a 1.3% rise. The metals and mining and the industrial sectors dropped the most, both retreating by 0.7%.

    Agrium (TSX: AGU, NYSE:AGU) was one of the biggest gainers on Canadian markets, rallying 5% to trade at $86.31 as of 3:10 pm ET.  The agricultural products retailer hit a 52-week high of $86.81 earlier in the day.

    Centerra Gold (TSX: CG), BlackPearl Resources (TSX: PXX), and Taseko Mines (TSX: TKO) also posted large gains, increasing 5%, 4.9%, and 4.7%, respectively.

    Metals and mining stocks filled the list of large percentage losers.  Katanga Mining (TSX: KAT) lost 4.8%, while First Quantum Minerals (TSX: FM) dropped 4.7%. Southgobi Resources (TSX: SGQ) and Extract Resources (TSX: EXT) both went down by 4%.

    Disclosure: no position
Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.