Stocks strong after Fed meeting
Stocks are higher today, continuing to climb after the Federal Reserve's dovish announcement yesterday.
S&P 500 futures are up 0.3 percent and are near their highs of the morning. European markets, however, are down more than 0.5 percent as investors braced for a potential worst-case outcome for the Greek debt crisis. China fell more than 3 percent overnight as profit taking continued. Oil and gold are rallying.
The Fed signaled yesterday that it's in no hurry to raise interest rates. While economic data has been improving and giving observers reason to expect an increase, U.S. policy-makers' hands have been tied by the Greek situation. That's finally coming to a head, with the European Central Bank threatening to turns its back on Athens unless bigger political reforms are made this month.
Those international concerns have made U.S. equities a safe haven for investors. Small-caps and domestically focused companies such as retailers, restaurants, homebuilders, and apparel makers have outperformed recently, according to optionMONSTER's proprietary researchLAB market scanner. Money has also streamed into new cybersecurity stocks. Financials are the single strongest sector in the last month but retreated yesterday as interest rates fell.
The broader S&P 500 has traded in a tight range but consistently held support along its 100-day moving average. It's now trying to break against a small four-week downtrend.
Today's calendar brings initial jobless claims and consumer prices at 8:30 a.m. ET. Strong readings could give investors reason to sell bonds and look past yesterday's dovish Fed message.
In company-specific news, Oracle fell 6 percent after earnings and revenue lagged forecasts. BioMarin Pharmaceutical rose 8 percent on a positive drug study. Rite Aid fell 2 percent after same-store sales growth missed consensus. Weak revenue and guidance drove Jabil Circuit down 8 percent.
Commodities and are higher and the U.S. dollar is lower after the Fed's dovish statement. Oil rose almost 1 percent, gold and silver gained about 2 percent, and copper is up 0.7 percent.
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