The Dow (^DJI) gained 1.00% today, The Nasdaq (^IXIC) 1.29% and the S&P 500 (^GSPC) 1.05%. Federal Reserve Chair Janet Yellen, speaking to the Economic Club of New York, said a healthy economy could be reached within two years. Yellen said Federal Reserve governors and economists see a return to full employment and stable prices by the end of 2016.
Yellen also said the longer it takes to reach the Fed’s targets for employment and inflation, the longer the Fed will hold the key Federal Funds Rate at its current level, near zero.
In corporate news, General Motors (GM) said it will ask a U.S. bankruptcy court to bar plaintiffs from proceeding with lawsuits related to a faulty ignition switch that has been linked to 13 deaths. The company has asked for a stay in litigations until a judicial panel can rule on whether the lawsuits violate GM’s bankruptcy. The re-organization was supposed to shield GM from claims for anything before the 2009 bankruptcy. It’s unclear if barring the lawsuits would affect compensation GM is considering for the victims and their families as a result of the ignition defect. GM said it is facing 36 lawsuits related to the ignition switch defect. Shares of General Motors closed at $33.97.
And shares of SodaStream (SODA) spiked as high as $42.25 today on reports of talks to sell a 10% to 16% stake to a large soft drink company at a price of $52 a share. As we reported earlier potential buyers could include Pepsi (PEP), Dr. Pepper Snapple Group (DPS) or Starbucks (SBUX). SodaStream shares closed at $40.75.
- Budget, Tax & Economy
- Janet Yellen
- Federal Reserve
- General Motors