Stocks and exchange traded funds (ETFs) are hopping this morning as Federal Reserve Chairman Ben Bernanke delivered to Congress his thoughts on interest rates and the recovery so far.
Every investor is thinking about interest rates these days. They’ve been at record lows for so long that they’re bound to come back again soon, right? Bernanke told Congress this morning that it isn’t the case: interest rates will remain low for an “extended period,” in fact. He’s said it before, though: on Jan. 27 and on Feb. 10. Will investors finally buy it? The SPDRs (NYSEArca: SPY) are up nearly 1% this morning.
Dramatic testimony on Toyota (NYSE: TM) continues today. Akio Toyoda, the company’s elusive leader, is finally going to appear before the House Committee on Oversight and Government Reform to read a prepared statement. In the statement, he plans to accept full responsibility and assure lawmakers that the automaker is working to fix the problems that have been a public relations nightmare for the company.
New home sales took an unexpected 11% spill last month, dropping to the lowest level on record. It’s being taken as a signal that government tax credits may not be enough to revive the ailing sector. Homebuilders are in a tough environment these days: not only are home sales tanking, but they’re competing with foreclosure properties. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is down nearly 1% this morning. [Real Estate ETFs: On the Mend?]
Greece received a warning today that Standard & Poor’s may downgrade the already-struggling nation by a notch or two in the coming weeks. Such a downgrade would put the country’s debt near junk territory. If Greece continues to struggle, it could further sink the euro, which has already suffered amid the crisis. CurrencyShares Euro Trust (NYSEArca: FXE) is up slightly this morning. [Spain, Greece, Portugal: Hope in Sight?]
Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.