Stocks and exchange traded funds (ETFs) are moving up this morning as the markets await an announcement by the Federal Reserve. Chairman Ben Bernanke is expected to announce that interest rates will remain where they are for now.
The Federal Reserve policymakers are anticipated to leave interest rates at record lows in order to entice Americans to continue to spend. They’re also expected to address the financial and economic strides the country has made in recent months, reports Jeannine Aversa for the Associated Press.
The service sector grew for the second consecutive month. The reading didn’t meat analysts’ forecasts, but the reading was above 50, indicating expansion. There was also encouraging news about the labor market: the number of private sector jobs lost in October was down for the seventh consecutive month, report Sara Lepro and Tim Paradis for the Associated Press.
Retailers had their best month in ages in October. Individual chains will report sales tomorrow, and the numbers are expected to be their strongest yet, The New York Times reports. Enthusiasm is on the restrained side; after all, consumers still aren’t spending at the level that economists would like. Sales of women’s clothing, for example, are 12.2% lower than they were in October 2007. SPDR S&P Retail (NYSEArca: XRT) is up about 0.25% this morning. (Why name brands are back in favor).
Time Warner (NYSE: TWX) posted a quarterly profit and stated that its business outlook had improved in the third quarter. The television and film units outperformed, but media subscriptions and ad sales are down, reports David Goldman at CNNMoney.
Comcast (Nasdaq: CMCSA) also reported earnings this morning, noting that they jumped 22% in the third quarter. Losses in television subscriptions were offset by gains in their Internet and voice divisions, reports Lance Whitney at Cnet News. PowerShares Dynamic Media (NYSEArca: PBS) is up about 1% this morning; Time Warner is 5.2%; Comcast is 4.9%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.