REUTERS/Yuri GripasU.S. Federal Reserve Chairman Ben Bernanke testifies before the House Budget committee hearing on the state of the Economy on Capitol Hill in Washington, February 2, 2012.
The Bernanke-rally is over.
First, the scoreboard:
- Dow: 15,401.3, -49.7 -0.3%
- S&P 500: 1,701.8, -8.0, -0.4%
- NASDAQ: 3,765.2, -9.4, -0.2%
And now the top stories:
- It’s been a couple of days since the Fed’s shocking decision to not taper its large-scale asset purchase (LSAP) program. But everyone’s still talking about it. One thing’s for sure, all of the stock market gains that came in the wake of the Fed’s announcement have evaporated.
- Three Fed officials spoke today about the decision. New York Fed President Bill Dudley explained that the labour market wasn’t showing enough improvement and that the economy had not picked up the forward momentum he was looking for. “[I]t is important to recognise that the financial crisis generated significant headwinds that are only slowly abating,” he added. “We must push against these headwinds forcefully to best achieve our objectives.”
- From Dallas Fed President Richard Fisher: “Here is a direct quote from the summation of my intervention at the table during the policy “go round” when Chairman [Ben] Bernanke called on me to speak on whether or not to taper: “Doing nothing at this meeting would increase uncertainty about the future conduct of policy and call the credibility of our communications into question.”I believe that is exactly what has occurred, though I take no pleasure in saying so.”
- Apple announced that it had sold over 9 million iPhone 5Ss and 5Cs over the weekend, crushing expectations for around 5 million to 7.75 million. Last year, Apple sold 5 million iPhone 5s during the opening weekend. Apple shares jumped 5% today.
- BlackBerry agreed to go private in a $US4.7 billion deal that would value the company at $US9 per share. The buyer is Fairfax Financial Holdings, which already owns 10% of the company.
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