Dow slightly higher; Bank stocks advances following Feds verdict

Dow slightly higher

Stocks from the bank inched higher last Wednesday’s session. This is driven by the increasing expectations that the Federal Reserve will push the interest rate hike for the month of June.

The Fed had already settled its policy conference for two days last Wednesday afternoon, offering an upbeat evaluation of the economic health in the United States, whilst keeping interest rates stable. The policy makers of Fed did convey some uncertainties regarding the U.S. economy just rising 0.7 percent in Q1, according to a statement. Wells Fargo says the markets prediction for an interest rate hike rose to 75 percent from 60 percent.

BMO Capital Markets head of U.S. rates strategy Ian Lyngen says there were many changes in the Federal Open Market Committee’s (FOMC) comments; however investors are still in-line with expectations.

Treasury yields are marginally higher, along with a two-year note yield close to 1.298 percent and the ten-year gauge by 2.311 percent.

The Dow Jones Industrial average was slightly higher by 0.04 percent at 20,957.90, with McDonalds as the best performer. The Nasdaq composite pulled back by 0.37 percent at 6,072.55. The S&P 500 dropped 0.13 percent at 2,388.13. Meanwhile the SPDR S&P Bank ETF (KBE) rose 0.75 percent.

Meanwhile in other news, the U.S. private sector added 177,000 jobs last April. According to a Reuter’s poll, the market is expecting an additional 175,000 jobs.

Wall Street is currently keeping an eye on the corporate earnings, tech company Apply in particular. The iPhone maker posted a mixed quarterly result.


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