Cheap is converging with expensive in the American equity market, narrowing options for investors looking for bargains after the broadest rally on record lifted almost 90 percent of the Standard & Poor’s 500 Index this year.
The dollar rose for a sixth day while Treasuries slid as faster-than-forecast growth in manufacturing fueled speculation the Federal Reserve will taper bond purchases. U.S. stocks climbed after a two-day drop while the S&P GSCI Index of commodities sank to a four-month low.
Here’s what to look for when the Federal Open Market Committee releases its statement today at 2 p.m. after a two-day meeting in Washington. The panel won’t provide new economic forecasts, and Chairman Ben S. Bernanke won’t hold a news conference.
U.S. stocks rose, halting the first two-day drop in the Standard & Poor’s 500 Index in three weeks, as optimism about corporate earnings offset concern that improving economic data could prompt the Federal Reserve to trim stimulus.
Mitt Romney says Barack Obama’s policies will consign the U.S. to an extended period of sluggish economic growth, at best. The president says his Republican challenger’s plans will sow the seeds of another mammoth recession. Both are wrong.
The Federal Reserve’s annual monetary conference in Jackson Hole, Wyoming, will probably focus on global central banks as Ben S. Bernanke becomes the first Fed chairman to pass up the meeting since 1988.
U.S. equities rose a third day as Microsoft Corp.’s plan to buy back $40 billion in stock fueled optimism that more companies will return cash to shareholders, while Treasuries climbed before a Federal Reserve decision tomorrow. European and Asian shares retreated and oil fell.