U.S. stocks declined, after the Standard & Poor’s 500 Index rallied to a record, as investors awaited tomorrow’s employment data to assess the strength of the economy and watched corporate earning reports.
Unlike many commodities, there are many shades to gold, such as the Love Trade’s buying gold for loved ones and the Fear Trade’s purchasing gold as a store of value. An additional “shade” investors need to be aware of is how the Fed interprets the recovery of the U.S. economy.
The most likely outcome in today's meeting is that the Fed will taper bond and MBS purchases by about a quarter. The market at first will freak out and we should see sharp drops in metals and a selloff in stocks and petroleum.
U.S. stocks rose, as monthly flows into equity exchange-traded funds reached a five-year high, after housing data and earnings from companies including McDonald’s Corp. fueled speculation stimulus would continue.
Traders were hoping Fed Chairman Ben Bernanke would provide some volatility yet instead he seemed to bring stability. What fun is that? The EIA reported that crude runs at U.S. refineries have increased steadilyto reach some of the highest levels on record.