US stocks rise after economic data and Fed – Magazine Saturday

Bags US rise after economic data and Fed

US stocks started the session high, after it was revealed that American families increased their consumption , increasing speculation that the economy will be strong enough to accommodate interest rises.

August 29, 2016 • Business

By Sara Antunes – Business Journal

The Dow Jones rises 0.22% to 18,436 11 points and the Nasdaq appreciates 0.14% to 5226.125 pontos.A contribute to the behavior of the markets is the economic indicator released Monday. Household consumption increased by 0.3% in July, which was expected by analysts surveyed by Bloomberg. This rise, which occurs four, was fueled by higher incomes that are driving the purchase of automobiles, revealed the US Department of Commerce this Monday, August 29, quoted by Bloomberg.
This indicator supports the view the Fed, which last week pointed to the possibility of two increases in interest EUA.A chairman of the Federal Reserve (Fed), Janet Yellen said on Friday, August 26, that “the scenario of increased interest rate tightened up in recent months.” Still, the speech in Jackson Hole was a cautious tone, leading investors to believe that it would still be possible that the price of money in the US did not rise since September.
However, minutes after this speech, the vice chairman of the Fed, Stanley Fischer, gave an interview which was more direct pointing to an interest rise since September, adding that this year the price of money can still rise again.
When asked interview with CNBC television station about whether investors could expect an increase in interest rates by the Fed at its meeting on 20 and 21 September, and there was the possibility of two increases this year, Fischer replied, “I think what [Yellen] said today was consistent with the affirmative answer to both your questions, but these are not things that we know until we see the data. “
” we had the long-awaited speech Yellen, “which led to many people believe that interest will “rise in September and December,” he told Bloomberg Otto Waser, head of investment in R & a Group. “It’s the strongest statement that the Fed did recently and investors are waking up to this. It may even be good for the market to pause after the strong gains we had,” he added.
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