Tuesday, July 16, 2013

It's The Economy Stupid: Market Close

U.S. stocks fell, halting the longest rally in the Standard & Poor’s 500 Index since January, as Coca-Cola Co.’s profit dropped and a Federal Reserve official called for cuts to stimulus.   The S&P 500 fell 0.4 percent to 1,676.24 at 4 p.m. in New York. The index had risen eight straight sessions to close at a record yesterday.

 

Hawkish comments from Kansas City Fed President Esther George as to the timing of adjustments to the Fed’s bond purchases put additional pressure on the market ahead of Fed Chairman Ben Bernanke’s testimony to Congress tomorrow.  George said the U.S. was on the “right path” for economic recovery and that cuts in the pace of stimulus are “appropriate.” George, speaking on Fox Business Network, also said inflation appears to be “moderate” and the benchmark interest rate should not be held too low for too long.   Bernanke will deliver his semi-annual monetary policy report to Congress this week, starting tomorrow at the House Financial Services

Committee.

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

225-342-0013

jbroussard@treasury.state.la.us

 

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