June 7, 2012
The expectations are so high for Fed Chairman Ben Bernanke Thursday to say something revealing about more Fed easing that he can probably only disappoint markets.
Bernanke’s 10 a.m. testimony before the Congressional Joint Economic Committee, comes on the heels of a major stock market rally, inspired in part by optimism for more Fed easing.
Stocks had their best day of the year, rising 286 points to 12,414, and the S&P 500 rose 29 to 1,315.
“What’s he (Bernanke) going to say? Is he really going to get in a helicopter and dump money?” said Steve Massocca of Wedbush Securities.
Developments in Europe could also be key Thursday, after a Reuters story Wednesday quoting German officials said a deal is in the works that would enable Spain to recapitalize its banks with aid from euro zone countries, but without strict new reforms. Markets will be watching as Spain conducts a bond auction, ahead of the New York market open.
This article was posted: Thursday, June 7, 2012 at 3:15 am