Stocks were poised for a lower open Thursday morning after two more days of gains, on some profit taking, and ahead of weekly jobs data among other factors.
On Wednesday, stocks rallied for the second day in a row following the Federal Reserve decision to boost its balance sheet by buying up to $300 billion in longer-term Treasuries. The Fed also decided to buy $750 billion in additional mortgage-backed securities. The Fed's action should mean lower rates for different business and consumer loans, including mortgage rates.
Overseas, world stock markets were mostly higher Thursday following the announcement of the Fed's $1.2 trillion spending plan, in hopes it would bring a quicker end to the worst global slowdown in decades. Still, foreign exporters got hurt as the dollar declined, mainly Japan's. Commodity firms helped lead the way on stronger prices for crude and metals, while select banks also advanced. European stocks also opened higher.
Meanwhile, the furor over executive bonuses at firms that helped cause the crisis and got bailed out by the government continues in full force as the House Democratic leaders have set a vote for today on a proposed 90% tax on executive bonuses by companies receiving more than $5 billion in federal bailout funds.
Economic data out today:
On Wednesday, stocks rallied for the second day in a row following the Federal Reserve decision to boost its balance sheet by buying up to $300 billion in longer-term Treasuries. The Fed also decided to buy $750 billion in additional mortgage-backed securities. The Fed's action should mean lower rates for different business and consumer loans, including mortgage rates.
Overseas, world stock markets were mostly higher Thursday following the announcement of the Fed's $1.2 trillion spending plan, in hopes it would bring a quicker end to the worst global slowdown in decades. Still, foreign exporters got hurt as the dollar declined, mainly Japan's. Commodity firms helped lead the way on stronger prices for crude and metals, while select banks also advanced. European stocks also opened higher.
Meanwhile, the furor over executive bonuses at firms that helped cause the crisis and got bailed out by the government continues in full force as the House Democratic leaders have set a vote for today on a proposed 90% tax on executive bonuses by companies receiving more than $5 billion in federal bailout funds.
Economic data out today:
- At 8:30 a.m. Eastern, the government will release its weekly report on initial jobless claims. It is expected to rise.
- At 10:00 a.m., February leading indicators will be reported and is expected to have fallen 0.6%, according to a Briefing.com.
- At the same time, March's Philadelphia Fed index, a report on regional manufacturing, is expected to improve to minus 39 for the month of March, according to Briefing.com.
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