Stock indexes rotated between red and green for most of the day, before ending on a slightly down note; the S&P 500 fell 0.03% and the NASDAQ 0.27%. After some quiet times during the holidays, the parade of Federal Reserve speakers returned.
Philadelphia Fed President Charles Plosser said the Fed faced “immense” challenges now that it had reduced bond-buying, and that it needed to be cognizant of a potential rapid rise in future inflation. Fed Chairman Ben Bernanke said that the central bank was no less committed to accommodative monetary policies despite the recent announcement that it would slow its stimulus program. He also said the U.S. economic recovery “clearly remains incomplete”. Richmond Fed President Jeffrey Lacker said the Fed would continue to mull reduced stimulus as the labor market improves.
No changes to the indexes – the NASDAQ, after hitting its resistance at the close Tuesday has pulled back for 2 days. The S&P 500 has pulled back to the 10 day moving average and is well above its support trendline in purple.
Despite the down action on the indexes, breadth was actually very positive so it was one of those days the indexes don’t tell the tale.
Airlines had a very good day as Dela reported better than expected December revenue. Delta also said its fuel price for the month was cheaper than it had forecast, by 3 cents per gallon. Much like biotechs this was one of the big positive movers of 2013.
General Motors (GM) reported lower December sales, below analysts’ expectations of a slight gain.
Apple (AAPL) has pulled back to its 50 day moving average; it has not broken it on a closing basis since mid September.
Have a good weekend and we’ll see you back here Monday.