Alcoa may have put to rest fears that earnings season would be an unqualified disaster after its positive quarterly report last night, but the real news today came when the Fed released its Beige Book, which indicated steady growth and stable or increased hiring activity throughout most of the nation. Although high gasoline prices are weighing on both businesses and consumers, the markets responded favorably to the report, adding to gains. At around 2:45 p.m. EDT, the Dow Jones Industrials
While Alcoa is the best performer in the Dow with a 7% jump today, several other stocks are reaping the benefit of the Fed's positive report. Both Bank of America
Also on the upswing are stocks that are sensitive to government spending. Both Boeing
The Fed and you
Nothing in the Beige Book suggests that the Fed plans to do anything to pump up stocks going forward. In fact, we've gotten indications that less Fed intervention may be coming. That might not make traders happy, but for long-term investors, getting the stock market off artificial life support is a key component of a lasting recovery.
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