Investors will be watching closely for hints that the central bank is prepared to intervene again in the U.S. economy, perhaps through additional purchases of government securities or a variation of an existing program set up to extend maturities of the central bank’s bonds.
In U.S. economic news, home building slowed in May but new permits reached their highest level since 2008, suggesting future demand for new houses.
In Europe, markets jumped as Spain’s borrowing costs eased off all-time highs. The Stoxx Europe 600 gained 1.6%, its biggest single-session gain in two weeks, to advance for the third session in a row.
Crude oil futures rose 0.9% to settle at $84.03 a barrel, while gold futures fell 0.2% to settle at $1622.20 a troy ounce. The U.S. dollar slipped against the euro and the yen. The yield on the benchmark 10-year Treasury note rose to 1.615%.
In corporate news, Oracle (ORCL) gained 3.1% after they reported that the fourth quarter profit had increased 7.5%. FedEx (FDX) rose 2.82% after the package delivery company reported that earnings had surpassed industry expectations. Finally, Facebook (FB) rose 1.6% and set its first four session win since its IPO.
Thomas Doherty is an undergraduate at Villanova University majoring in Finance and Economics. Thomas@KeeneOnTheMarket.com