In a statement released yesterday the FOMC outlined their plan to purchase $40 billion worth of mortgage bonds every month. The Committee also announced its intention to continue purchasing long-term debt in an effort to put downward pressure on long-term interest rates. The program means that the Fed will add around $85 billion to its $2.8 trillion balance sheet every month until economic conditions improve. The program has a more or less open-ended time frame. The Fed will evaluate the strength of the economy and will continue to ease until economic conditions, mainly unemployment, improve.
Apple (AAPL) hit a new all time high today of 696.98. iPhone 5 pre-orders opened today selling out in less than a minute. The tech giant now has a market cap of over $648 billion. The iPhone 5 is scheduled to be shipped next Friday.
Consumer prices index saw its biggest gain in 3 years. Retail sales were higher for the second month in a row.
Earnings next week:
Tuesday- FedEx
Wednesday- Auto-Zone, General Mills, Adobe Systems, Bed Bath and Beyond
Thursday- CarMax, ConAgra, Rite Aid, Oracle
