Stocks Rally On More Easy Money
Monday-Wednesday’s Action: All Eyes On The Fed
Stocks edged lower on Monday as investors digested a very strong four-week rally. New Home Sales hit an annualized rate of 468k units in September, missing estimates for 550k. It also missed August’s rate of 529k. Stocks slid on Tuesday as the Fed began their October meeting. Before the open, durable goods slid by -1.2%, missing estimates for -1.0%. The Case-Shiller Index rose by 0.1%, matching estimates for 0.1%. The PMI service flash index came in at 54.4, missing estimates for 55.3. Consumer confidence came in at 97.6, missing estimates for 102.5. The Richmond Fed Manufacturing index slid to -1, barely beating estimates for -2. In other news, oil prices continued to slide on supply woes. Stocks soared on Wednesday after the Fed held its latest meeting and decided to keep rates unchanged near zero. That gave the green light that the very powerful easy money trade is alive and well. Shares of Apple (AAPL) rallied after reporting their latest quarterly results. Shares of Twitter (TWTR) fell sharply after releasing earnings.