Bernanke Affirms Support over Federal Reserve While US Stocks Rise

Wall Street experienced a rise as Ben Bernanke, Federal Reserve chairman, affirms his support over the banking system's stimulus policy. Read on to find out more about his stand.

London, United Kingdom (prHWY.com) March 13, 2013 - Ben Bernanke, Federal Reserve chairman, reaffirms his support over the Fed's stimulus policy after the US stock market experienced a rise. The latest Wall Street earnings showed strength, while an Italian bond auction got a fair amount of demand that reassured investors.

The chairman reiterated his testimony in his second congressional committee appearance, where he defended the central bank's policy that aims to promote economy growth and lower unemployment rate by buying bonds for interest rates to remain low.

In a similar statement, Bernanke helped the market get back from its worst downturn since November of last year. The S&P 500 has risen above 1,500 - a level that has been closely watched and technically supported until recently.

Palisade Capital's chief investment officer, Dan Veru, said, "Bernanke comments will keep liquidity in place in the market and every dip now is being viewed as an opportunity to get in."

The possibility that the Fed's bond buying would end earlier than expected has worried the financial markets after some policy-makers favoured changes during bank meetings.

Another event that supported the market is the rise of European stocks, affecting the euro which previously encountered jitters over Italy's ability to sell bonds due to the country's political instability.

Indices that rose include Dow Jones that rose to 96.77 points or 0.70 per cent at 13,996.90, Standard & Poor which gained 11.93 points or 0.80 per cent at 1,508.87, and Nasdaq Composite which advanced 30.75 points or 0.98 per cent at 3,160.39.

Within its reach of record highs since a week ago, S&P 500 is up by 6 per cent this year before the Fed's January meeting minutes were released. The index has since shed 1 per cent as questions were raised about the Fed's decision over whether to slow or halt its economy-stimulating measures.

Target Corp., a big-time discount retailer, appears poised for good earnings in this year's first quarter. They are currently forecasting a higher profit for the whole year amidst their poor performance during the key holiday season. Stocks were off at $63.07 at 1.5 per cent.

Another discount chain, Dollar Tree Inc., also reported higher quarterly profits as customers continue to spend more while the company controls their costs. Stocks have jumped to $45.00 at 10 per cent.

Following the approval by Governor Chris Christie of New Jersey of the revised online gaming bill, Boyd Gaming shares have increased to $6.63 at 2 per cent.

Reports show pending home sales index increase by 4.5 per cent, it's highest since April of last year, just making it before the home-buyer tax credit expiration.

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