Stocks close broadly higher as Yellen offers upbeat economic assessment


Stocks finished strong, with the Dow rising nearly 100 points and the S&P adding 15 to push the index to its 20th record close of the year, as investors liked what Janet Yellen had to say.

The Fed continued the tapering of its bond-buying program by another $10B, as expected, but Yellen commented afterward that factors such as an improving job market and easing credit conditions could produce "above-trend" economic growth.

The utilities sector (+2.2%) finished atop today's leaderboard, extending its June advance to 2.7% while pushing its YTD gain to 14.1%; consumer staples (+1.2%) and health care (+0.8%) also finished ahead of the broader market.

Treasurys climbed to session highs after the FOMC statement crossed the wires; the 10-year note added half a point, lowering its yield to 2.59%.

July WTI crude oil neared $107 early but turned negative following weaker than expected inventory data, -0.4% to settle at $105.97; however, Brent crude, more sensitive to developments in Iraq, rose 0.7% to $114.30.

Comments (12)
  • Ted Bear
    , contributor
    Comments (700) | Send Message
     
    Sure, they "could" produce above trend economic growth.

     

    But then why are bonds running through the roof?

     

    I hope they know what they are doing, or this is going to end VERY badly for speculators, and preservationists.
    18 Jun 2014, 04:28 PM Reply Like
  • Brian58
    , contributor
    Comments (285) | Send Message
     
    This is going to end badly
    18 Jun 2014, 06:05 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10057) | Send Message
     
    Bonds aren't telling us anything and it doesn't have to end badly

     

    from a recent blog post

     

    "Stocks and bonds have close to a zero correlation historically, which means there is basically no relationship in their movements."

     

    more on that here :

     

    http://seekingalpha.co...
    18 Jun 2014, 07:46 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1805) | Send Message
     
    I am reminded of the Air France 447 pilot who kept gunning the engines and pointing the plane up until it stalled and crashed.
    18 Jun 2014, 06:46 PM Reply Like
  • tjn6175
    , contributor
    Comments (46) | Send Message
     
    The early 90s had similar correlation, bond and stock prices rising together for extended periods. Just before a phenomenal bull that peaked in 2000. Don't call this top yet! And if history repeats, low interest rates spurred by rising bond prices due to head-fake safe haven, fear of Fed, or whatever....then stocks look like the higher return, much higher.
    18 Jun 2014, 08:12 PM Reply Like
  • machiavelli
    , contributor
    Comments (723) | Send Message
     
    Please, by all means, continue to bet against the market. You have my gratitude. Or better yet, flood the comment sections of any bull news article with warnings of impending doom, especially if it is based on your ideology. That would be great. Thanks, and could you do one more thing for me? Have yourself a great day! Could you do that for me? Thanks again. ^_^
    18 Jun 2014, 10:03 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Dick Fuld would be proud.
    18 Jun 2014, 10:17 PM Reply Like
  • dadodge2
    , contributor
    Comments (15) | Send Message
     
    Thanks Machiavelli,

     

    There are a lot of hard core you know what's on here that have an axe to grind with our government and our current leader.

     

    They are ideologists rather than free and creative thinkers like most of the folks who create ideas and make our country the best country in the World.

     

    They should continue to bet on the closure of our economy.

     

    From their short / put pocket to mine.
    19 Jun 2014, 12:31 AM Reply Like
  • Bob the Bear
    , contributor
    Comments (55) | Send Message
     
    Same old same old. When Apple's PE is 20, then I'll worry
    19 Jun 2014, 02:59 AM Reply Like
  • Ted Bear
    , contributor
    Comments (700) | Send Message
     
    What is interesting in my observation is that every cycle we breed a new set of "it is different this time" . Just buy every dip. Bulls are invincible.

     

    And then they get their heads handed to them. And they are gone from the industry.

     

    I have been around a long time. Just because i observe that 'things don't make any sense' in an historical context doesn't mean i haven't found ways to make money both long and short. Simply stated, when things start to behave irrationally it is smart to be cautious, move a little bit to the sidelines, preserve, persevere, and wait for a healthy shake out to get rid of the Johnny come late-lies.

     

    What am i watching? Deflation. Europe has it; America dreads it. No-one even mentions it. I like that position.
    19 Jun 2014, 08:12 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10057) | Send Message
     
    "Bulls are invincible.
    And then they get their heads handed to them. "

     

    and so it goes on --- The cries of the perma bears- as they lament over their mistakes.. always suggesting that all of the folks who participated in this bull run -- will give it all back

     

    its an absurd assumption and total nonsense...
    19 Jun 2014, 09:14 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    what makes me think there is room to grow is that nothing seems to dent this market.

     

    Not Ukraine, not Iraq, it just sits where it is for a few days then resumes the climb.

     

    What will it take to cause the market to run?
    19 Jun 2014, 09:04 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs