The Market Recovers Post-Janet

The stock market is recovering nicely from yesterday’s Fed-induced jitters. The S&P 500 has been as high as 1,873 today. We’re now living in a world where tightening is to be expected. Not yet, but it’s on the horizon. Currently, most Fed members think interest rates will be at 1% by the end of next year and at 2.25% by the end of 2016.

We had some economic reports this morning. The initial claims report came in at 320,000. That’s a good number. The Philly Fed’s report on manufacturing was much stronger than expected. Their “diffusion index” of current activity was expected to rise from -6.3 to 3.2. Instead, it rose to 9.0.

On our Buy List, Microsoft ($MSFT) is doing very well today after positive comments from Morgan Stanley on the planned Office software for the iPad. MSFT is at a 14-year high. Wells Fargo ($WFC) and Qualcomm ($QCOM) are also at new highs.

Posted by on March 20th, 2014 at 3:21 pm


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