Federal Reserve Chair Janet Yellen says she doesn’t disagree with her predecessor on the substance of monetary policy. She does differ in style, which may prove important if the market reaction to her debut press conference is indicative.
The Standard & Poor’s 500 Index was tumbling to a 10-month low on July 2 as U.S. hiring declined and factory orders plunged. At Marketfield Asset Management in New York, Michael Shaoul told clients to hang on.
Building-supply stocks such as USG Corp., in which Warren Buffett holds a 16 percent stake, and Eagle Materials Inc. that more than doubled last year are poised to rise further as the U.S. housing market extends its recovery.
U.S. corporations ended 2011 with the slowest profit growth in two years as the mending economy that lifted Macy’s Inc. was met by a European slump that vexed companies more tied to global sales, such as Cisco Systems Inc.
Analysts are raising earnings estimates for U.S. companies at the fastest rate since at least 2004 just as stocks post the biggest losses in 16 months on concern that the economy will sink back into a recession.
The Dow Jones Industrial Average climbed above 13,000, capping its longest weekly advance since January, amid speculation the European Central Bank will buy bonds to help lower borrowing costs and preserve the euro.