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Markets Float Ahead Of Bernanke Speech



June 07, 2011 – Comments (1)

The markets are floating slightly higher today as the Dollar has fallen sharply once again. Federal Reserve Chairman Ben Bernanke is set to speak at 3:35pm ET today. Knowing this, gave Wall Street a good idea that the markets would most likely see weakness in the Dollar and an up market.  The market expects Bernanke to say positive things and always be a friend to the markets, thus the markets positive today.  The SPDR S&P 500 ETF (NYSE:SPY) $129.63, +0.59 (+0.45%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.04, -0.11 (-0.52%).

The strongest sectors today seem to be commodity plays like Chevron Corporation (NYSE:CVX) and Halliburton Company (NYSE:HAL). These stocks are solidly higher today after taking a hit over the last few weeks.

The weakest sector today is again bank stocks. Goldman Sachs Group, Inc. (NYSE:GS) is negative along with Wells Fargo & Company (NYSE:WFC).

The markets are likely to hold small gains into Ben Bernanke's speech today. The markets are still jittery over the European debt crisis and the U.S. jobs picture. This is unlikely to change in the short term. However, with Bernanke speaking and the Dollar falling, a small up day or two may be possible.

Gareth Soloway

1 Comments – Post Your Own

#1) On June 07, 2011 at 12:29 PM, davejh23 (< 20) wrote:

We've seen the market fall sharply in late trading following Fed statements many times.  Bernanke will mention QE2 ending with no plans for futher easing but no plans to hike rates anytime soon.  Nothing unexpected, and the market will close flat for the day...slight gain or slightly in the red.  Any further declines into the end of the week and the intermediate term picture starts to look pretty bearish.   

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