All eyes will be on tomorrows Fed address as to speculation that it will start tapering off asset purchases in September, cutting back from $85 billion per month to $70 billion to $75 billion. With this as the census opinion any deterrence could send the market spiraling down or shooting to all new highs anyone’s guess at this point.
Markets seem to be fine with the expectations of minimal tapering as the Dow Jones and S&P 500 both closed higher for the third consecutive day. The Dow Jones closed near the middle of its days range closing up by 34.95 points to end at 15,529.73. It is currently on pace for its second best monthly gain of 2013. The S&P 500 added 7.16 points to end at 1,704.76, finishing above 1,700 for the first time since Aug. 5. The index is set to post its strongest first three quarters of a year since 1997. The NASDAQ was the big winner today rallying by 27.85 points to close at 3,745.70.
Tomorrow will be a very interesting day and could set the tone of the markets for the remainder of the year. With the Feds wrapping up their 2 day meeting we will a statement from them at 2:00 pm EST followed up with a question and answer period with Ben Bernanke. We will also see new housing starts numbers and crude oil inventory numbers as well. There will be 12 companies reporting earnings tomorrow including FedEx Corp, General Mills Inc, and Oracle Corp. Happy Trading!