Federal Reserve Chairman Ben Bernanke didn't tip his hand as he delivered his assessment of the U.S. economy to Congress. He continued to keep the status quo while reminding lawmakers that the economy is still improving, just at a rate that still leaves a large contingent of American jobless or underemployed. The markets reacted with hysteria soon after Bernanke's address but quickly corrected with expectations of future stimulus.
Notes from the last Federal Open Market Committee meeting mentioned that the Fed decided to stay the course if GDP grow stayed between 1.9% and 2.4%. Investors are looking at the first-quarter GDP growth of 2%, coupled with Bernanke's prediction of even slower second-quarter growth, as justification for QE3 in the near future. For now, after the day's initial dip, the Dow Jones Industrials
Today started off on an upbeat note as Goldman Sachs
Goldman reported $972 million in earnings, or EPS of $1.78, handily beating estimates of $1.16 per share. However, the bank's profit plunged 12% when compared with last year's quarter. The drop can be attributed to worsening market conditions caused by European uncertainty and slowing economic growth.
Coca-Cola finished the past quarter down slightly on net income from one year ago, but it topped EPS expectations by $0.03. Net income for the quarter was $2.79 billion, for EPS of $1.21, as sales volume for the quarter grew by 4%, with international sales increasing at a greater clip than the 1% domestic increase.
After the markets closed, Intel
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Joel South owns shares of no company listed above. The Motley Fool owns shares of Coca-Cola and Intel. Motley Fool newsletter services have recommended buying shares of Coca-Cola, Goldman Sachs Group, and Intel. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.