It looks as if the broad markets are taking European Central Bank President Mario Draghi's words at face value, as the Dow Jones Industrials
The ECB wasn't the only central bank making noise today, as the Federal Reserve addressed the weak economic figures released recently by stating it would be ready to take further monetary action to help spur the U.S. economy. With encouraging statements from the European Central Bank and the Fed, investors felt reassured as capital shifted from Treasuries and into the stock market, with all three major indexes up close to 2%.
The Dow Jones is enjoying a rare gem of a day, with all its components up significantly. Bank of America
Today's news also sparked expectations that energy consumption will not have as hard a landing, as the eurozone and the United States could correct and continue to grow, consuming energy on the way. The price of crude increased because demand is expected to stay firm, benefiting ExxonMobil and Chevron, up 2.31% and 2.66%, respectively.
All the major industries are in the green today, led by basic materials. However, it appears home furnishings forgot their invitation to the party. Tempur-Pedic shares were thrashed after the company announced its second-quarter outlook would be cut in half, shrinking its share price by more than 40%. But the problem was not company-specific, as Mattress Firm Holding
The increased buying in the market is much needed, allowing the Dow to reclaim some gains on the year. However, the good news that helped buoy the market is still just that... news. In order to stabilize the market for a long bull run, the central banks will need to act upon their intentions and right this ship. The problems are complex and the treatment is supplied in small doses, so expect some turbulence on the way. With increased instability expected in the market, now is a great time to check out The Motley Fool's special report: "3 Stocks That Will Help You Retire Rich." This free report will list three remarkable companies as well as offer great advice on how to invest to secure a comfortable retirement -- get your free report now.
Joel South owns shares of no company listed above. The Motley Fool owns shares of Tempur-Pedic International and Bank of America. Motley Fool newsletter services have recommended buying shares of Chevron. The Motley Fool has a disclosure policy.
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