Friday’s Mid-Day Movers: 3 Stories Driving Markets

The major stocks were falling Friday after initial wavering. As of 12 p.m.:

DIJA: -0.61% to 15084.16 S&P 500: -0.48% to 1628.57 NASDAQ: -0.58% to 3425.54
Gold: +1.18% to 76.38 Oil: +1.16% to 22.72 U.S. 10-Year: -3.04% to 21.08

Here are three stories helping drive the market Friday afternoon:

1. Does the Fed Have the Cure for What Ails America’s Economy? “Importantly, accommodative monetary policy has also helped to offset incipient deflationary pressures and kept inflation from falling even further below the Committee’s 2 percent longer-run objective.”

When he testified before Congress in May, Chairman of the U.S. Federal Reserve Ben Bernanke gave what can be interpreted as a mixed diagnosis of the health of the economy. While economic growth during the first and second quarter continued at a moderate rate, the trajectory of key indicators such as unemployment and inflation is by no means clear… (Read more.)

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2. Are Consumers Starting to Sour on the Economy Again? After hitting its highest level in almost six years, consumer sentiment in the United States is starting the month on a low note.

According to the Thomson Reuters/University of Michigan’s preliminary reading, consumer sentiment in June fell to 82.7, compared to 84.5 in May. Last month’s reading was the best level for the index since July 2007…(Read more.)

3. Risk-On Mode Puts Markets Back On Top: Thursday’s economic reports were in a “Goldilocks” range — sending investors into a “risk-on” mode and pushing stocks skyward.

Thursday’s economic data allowed stocks to make a significant rebound from Wednesday’s bloodbath. All three economic reports were in a “Goldilocks” range: Positive enough to boost investor enthusiasm about the economic recovery, without being so strong that the U.S. Federal Reserve would reduce its quantitative easing program. As a result, investors embraced risk and sent the major stock indices soaring in excess of one percent…(Read more.)

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