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New York Markets Open in:

Futures: /quotes/zigman/30356461/delayed S&P 500 -0.4% /quotes/zigman/38649152/delayed DOW -0.5% /quotes/zigman/30356458/delayed NASDAQ -0.5%

need to know
Market turmoil caused by obscure strategy?
44 million tried Apple Music in its first month
When do markets close for Labor Day?
Amazon to buy video software company
ISM services index slows, but tops forecast
Jobless claims rise to two-month high
U.S. trade deficit shrinks 7.4% to $41.9 billion
L.L. Bean longtime CEO Leon Gorman dies
Treasury's Lew irked by China's FX move
Kentucky clerk jailed over marriage licenses

Oops — Rick Perry says broken clock right once a day

Six actors who were almost cast as James Bond

Sizeable outflow from China adds to fears

Ad war over oil exports heats up as vote nears

What it’s like to play tennis with a ‘smart’ racket

Tom Brady’s ‘Deflategate’ suspension overturned
The real Deflategate verdict? NFL’s in trouble

Immigration to Germany hits highest mark since 1992

Chaos at Budapest train station as migrants rush trains
Budapest and Europe face a migrant crisis
Syrian refugees reach Norway — via the Arctic
Father of drowned Syrian boy describes voyage

Gates: How we can avoid worst of climate change

Watch China’s    90-minute parade in 60 seconds
Xi talks peace, but China parade flexes power
China markets close for war anniversary

Blame Marissa Mayer for maternity-leave shrink

Karl Lagerfeld is coming to a store near you

These are the college majors that are dying

They tangled with student debt all summer
College help for low-income families

Investment risk has changed, so this must change too
Volatility is driving foreign buyers to Treasurys

The search for 1,000 angels to help women startups

43% of U.S. homes are at high risk of natural disaster

Why the U.K. Hugo Chavez will be good for its economy

Why India is worth a look if you’re cooling on China

Apple’s biggest challenge: Topping the iPhone 6
Apple set to join content contest
What to expect from the Apple event on Sept. 9
/conga/frontpage.html 354117

Markets »

109.73MDow Volume:
Avg Vol: 113.10M
Unchanged
224
Decliners
2653
Advancers
3709
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,375 +23 0.14%
Nasdaq
/quotes/zigman/12633936/realtime 4,733 -16 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,951 +2 0.12%
GlobalDow
/quotes/zigman/629063/realtime 2,312 -11 0.48%
Gold
/quotes/zigman/662444/delayed 1,125 +0 0.01%
Oil
/quotes/zigman/2331095/delayed 46.23 -0.52 1.11%
FTSE 100
/quotes/zigman/3173262/delayed 6,194 +111 1.82%
DAX
/quotes/zigman/2380246/delayed 10,318 +270 2.68%
CAC 40
/quotes/zigman/3173214/delayed 4,654 +99 2.17%
FTSE MIB
/quotes/zigman/1482176/delayed 22,177 +565 2.62%
IBEX 35
/quotes/zigman/2759620/delayed 10,042 +104 1.05%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +8 2.37%
Asia Dow
/quotes/zigman/6959860/realtime 2,685 -28 1.03%
Nikkei 225
/quotes/zigman/5986735/delayed 17,792 -390 2.15%
Hang Seng
/quotes/zigman/2622475/delayed 20,864 -71 0.34%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,272 -493 1.91%
Singapore
/quotes/zigman/1709939/delayed 2,872 -34 1.18%
Euro
/quotes/zigman/16008136/realtime/sampled 1.11 +0.00 0.11%
Yen
/quotes/zigman/16008150/realtime/sampled 119.34 -0.73 0.61%
Pound
/quotes/zigman/16008140/realtime/sampled 1.52 0.00 0.27%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 0.00 0.66%
DXY Index
/quotes/zigman/1652083/delayed 96.28 -0.12 0.12%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.82 +0.01 0.01%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.14 -0.02 0.77%
German 10y
/quotes/zigman/15866409/realtime 0.71 -0.01 1.46%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 0.00 0.25%
Spain 10yr
/quotes/zigman/15866444/realtime 2.10 -0.01 0.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.77 -0.03 1.56%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 -0.02 4.33%
Crude Oil
/quotes/zigman/2331095/delayed 46 -1 1.11%
Gold
/quotes/zigman/662444/delayed 1,125 +0 0.01%
Corn
/quotes/zigman/7599553/delayed 361 -1 0.14%
DJIA F
/quotes/zigman/38649152/delayed 16,270 -78 0.48%
S&P F
/quotes/zigman/30356461/delayed 1,938 -8 0.43%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.43%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 88.15 -1.74 -1.94%
AAPL /quotes/zigman/68270/composite 110.37 -1.97 -1.75%
GOOG /quotes/zigman/30194416/composite 606.25 -8.09 -1.32%
BAC /quotes/zigman/190927/composite 15.94 0.09 0.57%
C /quotes/zigman/5065548/composite 51.79 0.04 0.08%
F /quotes/zigman/264304/composite 13.84 -0.03 -0.22%
T /quotes/zigman/398198/composite 33.04 0.22 0.67%
BP /quotes/zigman/247026/composite 32.41 0.21 0.65%
GE /quotes/zigman/227468/composite 24.51 -0.06 -0.24%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/87598/composite NFLX-4.15%
  • /quotes/zigman/7601800/composite JOY-14.60%
  • /quotes/zigman/12221594/composite AMBA-10.77%
  • /quotes/zigman/250106/composite WWE+3.08%
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Our real-time advice on how market shifts and news impact you and your money

Fed Holds Its Fire — for Now

The Fed’s announcement this afternoon offered investors more “wait and see” than “shock and awe.” But even though the Federal Open Market Committee (FOMC) didn’t move to stimulate the economy, its statement hinted strongly that future action would be likely if economic conditions warrant, saying that the Fed would “provide additional accommodation as needed to promote a stronger economic recovery.”

Mesut Dogan / Shutterstock.com
The Federal Reserve

While all eyes turn now to the next FOMC meeting on September 12 and 13, financial advisers generally recommend pausing to digest today’s news, rather than making major moves. If anything, today’s announcement reinforces the likelihood that interest rates will remain at their rock-bottom lows for years to come—good news for some long-term bondholders and bad news, of course, for savers and safe-income seekers.

By September’s meeting, Fed officials will have two more months of unemployment reports and other data to evaluate. For now, market committee members seem divided about making pre-emptive moves to bolster the economy, experts have said. A look at the recent past shows that previous Fed action has come only after multiple months of weak consumer confidence, poor stock performance and sluggish economic growth—a gloomy trifecta that the U.S. hasn’t quite accomplished at present. Some Fed watchers say officials might resist launching a new stimulus program just ahead of the presidential election, for fear of looking political. But don’t rule that possibility out, counters Nicholas Bohnsack, sector strategist at brokerage and research firm Strategas. He notes that the Fed “got deeply involved in the throes of the election cycle last time,” taking part in the decision to let Lehman Brothers fail and then lowering rates twice in October 2008.

To be sure, some pros say it’s not the Fed’s moves that will matter most to the economy in the end, but what happens in Europe. Many investors say it will take substantial action from the European Central Bank, which meets Thursday, to calm their fears. That was illustrated in part last week, when the Dow jumped more than 200 points after ECB president Mario Draghi said he would do “whatever it takes” to preserve the euro. “Investors globally pretty much see distress in Europe as the key risk to the global economy,” says Robert Tipp, chief investment strategist with Prudential Fixed Income.

Here’s how today’s Fed announcement might affect various investments:

Mortgages and Real Estate

Mortgages are priced like bonds: they respond to movements in Treasurys, which in turn respond to the benchmark federal funds rate set by the Federal Reserve. Today the Fed reiterated its plans to keep this short-term rate at between zero and 0.25% through at least late 2014. The national average for a 30-year, fixed-rate mortgage loan has plunged to a record low of 3.75%, according toBankrate.com. But that’s hardly sparked a buying frenzy. “You’re not going to buy a house because mortgage rates are low any more than you’d get married because they’re having a sale on bridal gowns,” says Greg McBride, senior financial analyst at Bankrate. Low rates provide a boost for consumers already in the market for a home; they might take advantage of low borrowing costs by trading up, for example. But as of right now, there are too few buyers out there to give the housing market and the broader economy a boost; indeed, today’s Fed statement points out that “the housing sector remains depressed.” New home sales fell in June to an annual pace of 350,000, down 8.4% from May. Even future Fed action that might cause mortgage rates to limbo even lower can’t manufacture demand among skittish consumers, McBride says.

Stocks

Today’s Fed announcement won’t likely affect stocks beyond traders’ initial, knee-jerk reaction, experts say. Of course, the underlying economic conditions that informed the Fed’s decision will certainly affect the markets. Fed officials downgraded their assessment in today’s statement, saying “economic activity decelerated somewhat” over the first half of last year, versus the “expanding moderately” language of their previous June 20 statement. But even if the Fed decides to launch a big stimulus program at its next meeting, investors should temper their expectations for a sustained stock rally, says Strategas’s Bohnsack. The bond-buying program known as QE1, which started in March 2009, propelled stocks to a 14-month rally; but QE2, launched in November 2010, prompted only a six-month rally; and Operation Twist, the bond maturity-rotation program announced in September 2011, inspired a bump that lasted only four months, Bohnsack says.

Bonds

The Fed’s announcement today means yield-hungry investors will need to keep finding creative ways to boost income. With the 10-year Treasury yielding 1.5%, yields on the safest bonds are near record lows, and some experts say they could get lower. Some investors have been piling into closed-end funds that invest in bonds but use leverage, which allows them to magnify any price gains—and losses. But the move has pushed up premiums on those funds, increasing the downside risk for investors who overpay. Other investors, like Tipp of Prudential, are using more long-term bonds, which tend to have higher yields than short-term bonds. Long-term bonds would also see steeper price drops if interest rates move higher, but Tipp says slower economic growth and low inflation expectations—combined with the Fed’s vow today to keep rates low—should minimize that risk.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Open in:

Futures: /quotes/zigman/30356461/delayed S&P 500 -0.4% /quotes/zigman/38649152/delayed DOW -0.5% /quotes/zigman/30356458/delayed NASDAQ -0.5%

need to know
Market turmoil caused by obscure strategy?
44 million tried Apple Music in its first month
When do markets close for Labor Day?
Amazon to buy video software company
ISM services index slows, but tops forecast
Jobless claims rise to two-month high
U.S. trade deficit shrinks 7.4% to $41.9 billion
L.L. Bean longtime CEO Leon Gorman dies
Treasury's Lew irked by China's FX move
Kentucky clerk jailed over marriage licenses

Oops — Rick Perry says broken clock right once a day

Six actors who were almost cast as James Bond

Sizeable outflow from China adds to fears

Ad war over oil exports heats up as vote nears

What it’s like to play tennis with a ‘smart’ racket

Tom Brady’s ‘Deflategate’ suspension overturned
The real Deflategate verdict? NFL’s in trouble

Immigration to Germany hits highest mark since 1992

Chaos at Budapest train station as migrants rush trains
Budapest and Europe face a migrant crisis
Syrian refugees reach Norway — via the Arctic
Father of drowned Syrian boy describes voyage

Gates: How we can avoid worst of climate change

Watch China’s    90-minute parade in 60 seconds
Xi talks peace, but China parade flexes power
China markets close for war anniversary

Blame Marissa Mayer for maternity-leave shrink

Karl Lagerfeld is coming to a store near you

These are the college majors that are dying

They tangled with student debt all summer
College help for low-income families

Investment risk has changed, so this must change too
Volatility is driving foreign buyers to Treasurys

The search for 1,000 angels to help women startups

43% of U.S. homes are at high risk of natural disaster

Why the U.K. Hugo Chavez will be good for its economy

Why India is worth a look if you’re cooling on China

Apple’s biggest challenge: Topping the iPhone 6
Apple set to join content contest
What to expect from the Apple event on Sept. 9
/conga/frontpage.html 354117

Markets »

109.73MDow Volume:
Avg Vol: 113.10M
Unchanged
224
Decliners
2653
Advancers
3709
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,375 +23 0.14%
Nasdaq
/quotes/zigman/12633936/realtime 4,733 -16 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,951 +2 0.12%
GlobalDow
/quotes/zigman/629063/realtime 2,312 -11 0.47%
Gold
/quotes/zigman/662444/delayed 1,125 +0 0.01%
Oil
/quotes/zigman/2331095/delayed 46.25 -0.50 1.07%
FTSE 100
/quotes/zigman/3173262/delayed 6,194 +111 1.82%
DAX
/quotes/zigman/2380246/delayed 10,318 +270 2.68%
CAC 40
/quotes/zigman/3173214/delayed 4,654 +99 2.17%
FTSE MIB
/quotes/zigman/1482176/delayed 22,177 +565 2.62%
IBEX 35
/quotes/zigman/2759620/delayed 10,042 +104 1.05%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +8 2.37%
Asia Dow
/quotes/zigman/6959860/realtime 2,685 -28 1.04%
Nikkei 225
/quotes/zigman/5986735/delayed 17,792 -390 2.15%
Hang Seng
/quotes/zigman/2622475/delayed 20,865 -70 0.33%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,272 -493 1.91%
Singapore
/quotes/zigman/1709939/delayed 2,873 -33 1.15%
Euro
/quotes/zigman/16008136/realtime/sampled 1.11 +0.00 0.10%
Yen
/quotes/zigman/16008150/realtime/sampled 119.35 -0.72 0.60%
Pound
/quotes/zigman/16008140/realtime/sampled 1.52 0.00 0.27%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 0.00 0.63%
DXY Index
/quotes/zigman/1652083/delayed 96.28 -0.12 0.12%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.82 +0.01 0.01%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.15 -0.01 0.69%
German 10y
/quotes/zigman/15866409/realtime 0.71 -0.01 1.46%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 0.00 0.17%
Spain 10yr
/quotes/zigman/15866444/realtime 2.10 -0.01 0.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.77 -0.03 1.61%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 -0.02 4.33%
Crude Oil
/quotes/zigman/2331095/delayed 46 -1 1.07%
Gold
/quotes/zigman/662444/delayed 1,125 +0 0.01%
Corn
/quotes/zigman/7599553/delayed 361 -1 0.14%
DJIA F
/quotes/zigman/38649152/delayed 16,274 -74 0.45%
S&P F
/quotes/zigman/30356461/delayed 1,938 -8 0.40%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.43%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 88.15 -1.74 -1.94%
AAPL /quotes/zigman/68270/composite 110.37 -1.97 -1.75%
GOOG /quotes/zigman/30194416/composite 606.25 -8.09 -1.32%
BAC /quotes/zigman/190927/composite 15.94 0.09 0.57%
C /quotes/zigman/5065548/composite 51.79 0.04 0.08%
F /quotes/zigman/264304/composite 13.84 -0.03 -0.22%
T /quotes/zigman/398198/composite 33.04 0.22 0.67%
BP /quotes/zigman/247026/composite 32.41 0.21 0.65%
GE /quotes/zigman/227468/composite 24.51 -0.06 -0.24%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/87598/composite NFLX-4.15%
  • /quotes/zigman/7601800/composite JOY-14.60%
  • /quotes/zigman/12221594/composite AMBA-10.77%
  • /quotes/zigman/250106/composite WWE+3.08%
  • /quotes/zigman/19452757/composite ORCL+0.41%
X
Powered by StockTwits
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As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

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