The Fed, Starbucks and all
Holding the first press conference in the Federal Reserve‘s long history, Ben Bernanke ushered a new sense of optimism and positive outlook for the economy and Q2 of 2011. Despite an increase in inflation and slightly high unemployment, the Fed believes that the economy is finally back on its path to recovery and sustaining itself without any additional efforts by the government. It does however believe that growth is on the decline but will be able to improve in 2011. To that end, the Federal Reserve Bank will continue its program of purchasing $600 billion in bonds through June after which it will end the program. Interest rates will be kept low despite the rise in inflation according to Bernanke.
Other positive news, among many, included average earnings report in Q1 profits for Starbucks, as expected, and improved outlooks for Q2 profits than most analysts anticipated. The coffee giant expects to boost its already amazing increase in customer visits to its stores in 2011 and raises its forecast for 2011 profits overall. Starbucks shares fell 69 cents in after-hours trading on April 27, 2011.
Boeing Co. earnings report beat analyst expectations this morning giving positive insight into the company. The company expects to deliver on its much delayed production of its 787 airplanes by Q3.
The Dow Jones Industrials rose 96 points to close at 12,690.96, the S&P rose 9 points to 1,355.66 and the NASDAQ rose 23 to 2,869.88.
What are your thoughts on the Fed, economy and the future of the United States as a center of economic activity? Let us know! Tweet to us or comment on the official UpDown.com facebook page! Good luck UpDown traders!
-The UpDown Team