Thursday, June 21, 2018
Business

Stocks surge after Bernanke eases fear of stimulus drawback

NEW YORK — Call it the Bernanke Boost.

The stock market, which has been marching higher for a week, got extra fuel Thursday after Federal Reserve Chairman Ben Bernanke said late Wednesday that the central bank will keep supporting the economy "for the foreseeable future."

The Dow Jones Industrial Average and Standard & Poor's 500 surged to all-time highs. And the yield on the 10-year Treasury note continued to decline as investors bought bonds. Stocks that benefit most from a continuation of low interest rates, such as home builders, notched some of the biggest gains.

The U.S. economy needs help because unemployment is high, Bernanke said. His remarks seemed to ease investors' fears that the central bank will pull back on its economic stimulus too quickly. The Fed is buying $85 billion a month in bonds to keep interest rates low and to encourage spending and hiring.

"It's back to the old accommodative Fed, so the markets are happy again," said Randy Frederick, managing director of active trading and derivatives at the Schwab Center for Financial Research.

The market pulled back last month after Bernanke laid out a timetable for the Fed to wind down its bond-buying program. He said the central bank would likely ease back on its monthly purchases if the economy strengthened sufficiently.

On Thursday, the S&P 500 index jumped 22.40 points, or, 1.4 percent, to 1,675.02, surpassing its previous record close of 1,669, set May 21. The index rose for a sixth straight day, its longest streak in four months.

The Dow rose 169.26 points, or 1.1 percent, to 15,460.92, above its own all-time closing high of 15,409, set May 28.

The Nasdaq composite rose 57.54 points, or 1.4 percent, to 3,578.30.

In government bond trading, the yield on the 10-year note fell to 2.57 percent from 2.63 percent Wednesday. The yield was as high as 2.74 percent Friday after the government reported strong hiring in June. Many traders took that report as a signal that the Fed would be more likely to slow its bond purchases sooner rather than later.

The Fed has also said it plans to keep short-term rates at record lows, at least until unemployment falls to 6.5 percent.

Home builders, which are sensitive to the outlook for interest rates, were big gainers.

D.R. Horton rose $1.93, or 9.2 percent, to $22.98, and Lennar Group climbed $2.88, or 8.3 percent, to $37.44.

The housing market has benefited from low interest rates because they help make mortgages cheaper.

"The Bernanke qualifications have taken the interest rate risk off the table, and now it's really about what will earnings say," said Jonathan Lewis, chief investment officer at Samson Capital Advisors.

The price of gold gained for a fourth straight day, climbing $32.70, or 2.6 percent, to $1,280.10 an ounce. Gold has rebounded this week after falling close to a three-year low.

Comments
Domain Homes: Buyers love them, some others don’t

Domain Homes: Buyers love them, some others don’t

TAMPA — When the 2008 financial crash brought down the nation’s housing market, hundreds of home builders went out of business. Among them was Sharon McSwain Homes in Atlanta, forced to liquidate in 2009.But just as developers like to develop, builde...
Updated: 7 hours ago
Armature Works developers sue Ulele and city of Tampa over use of nearby building

Armature Works developers sue Ulele and city of Tampa over use of nearby building

TAMPA — Two of the city’s hottest developers — the companies behind Ulele and the Armature Works — are heading to court over control of an old city building that sits between the hit eateries. Both want to redevelop the city&...
Updated: 7 hours ago
Orlando airport first to scan faces of U.S. citizens on international flights

Orlando airport first to scan faces of U.S. citizens on international flights

Associated PressFlorida’s busiest airport is becoming the first in the nation to require a face scan of passengers on all arriving and departing international flights, including U.S. citizens, according to officials there. The expected announcement T...
Updated: 10 hours ago
Saboteur or whistleblower? Battle between Elon Musk and former Tesla employee turns ugly, exposing internal rancor

Saboteur or whistleblower? Battle between Elon Musk and former Tesla employee turns ugly, exposing internal rancor

Hours after Tesla had sued its former employee on charges he had stolen company secrets, and days after chief Elon Musk had called him a saboteur, the Silicon Valley automaker made a startling claim. The company had received a call from a friend of t...
Published: 06/21/18
WTR Pool and Grille brings ‘fun dining’ pool party scene to Tampa

WTR Pool and Grille brings ‘fun dining’ pool party scene to Tampa

Mike Piper has traveled to Las Vegas and Miami and enjoyed the fun, daytime, party pool scene that the two cities have to offer.Now he aims to bring that same atmosphere to Tampa with a new dining and hang out spot. WTR Pool & Grill opened on Sunday ...
Published: 06/21/18
Grace Family Church gives thrift stores an upgrade in South Tampa

Grace Family Church gives thrift stores an upgrade in South Tampa

A new resale store has made its way to South Tampa. Grace Family Church recently opened Vintage Etc., to provide affordable, quality merchandise to the community and continue its outreach to help families in need in a loving Christian environment. "W...
Published: 06/21/18
2.4 million Floridians expected to travel for Fourth of July

2.4 million Floridians expected to travel for Fourth of July

Summer has officially started and so have summer travel plans. About 2.4 million Floridians are expected to travel for the Fourth of July holiday weekend, up 6.3 percent from last year, according to AAA, The Auto Club Group."We are already seeing a b...
Published: 06/21/18
Taylor Morrison builds in Wesley Chapel

Taylor Morrison builds in Wesley Chapel

Taylor Morrison will build a new subdivision off of Boyette Road between Wesley Chapel Boulevard and Overpass Road.The builder and developer recently broke ground on Chapel Chase, set on approximately 40 acres just north of New Tampa in Pasco County....
Published: 06/21/18
Grain and Berry Cafe to bring its healthy menu to USF area

Grain and Berry Cafe to bring its healthy menu to USF area

Grain & Berry Cafe opened in Palm Harbor, and now the healthy eatery is rapidly expanding throughout the Tampa Bay area.The healthy eatery opened a new location on E Fowler Ave near the University of South Florida in May, just 10 months after opening...
Published: 06/21/18
Supreme Court: Online shoppers can be forced to pay sales tax

Supreme Court: Online shoppers can be forced to pay sales tax

WASHINGTON — The Supreme Court says states can force online shoppers to pay sales tax.The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impact...
Published: 06/21/18