Fed report sends share prices northward

U.S. stocks went through an upward swing after a report from the Federal Reserve showed business activity growing in almost all regions of the country, which in return indicated that the spate of the Fed's interest rate hikes might abate in the near future.

The Wall Street was reeling under pressure when the Fed released its Beige Book, a cross-country survey of the overall business climate. According to the Central Bank, the job market has improved and inflation has been contained -- both were a major concern for the Fed and the stock marker. 7 out of 12 districts have indicated growing regional economies.

Robert Tipp, chief investment strategist for Prudential Investment Management fixed income noted that this year's Beige Book was gentler than the previous Beige Books and they relayed enough signs to the Feds that the economy is showing positive trends and so they should put a leash on the ever increasing interest rates.

As the housing market sizzled, the sale of new homes reached an all-time high in June. To elongate the growth trend, factory orders for big-ticket manufactured products manifest strong signs of growth with a 1.4% increase in June. These are exactly the kinds of news of news the investors want to hear, say the analysts, while corporate earnings too are upbeat.

Jack Caffrey, equities strategist at J.P. Morgan Private Bank observed that the expected economic slowdown that takes place at this time of the year isn't occurring this time.

Advancing issues were 9 compared to the decliner's 7 on the New York Stock Exchange, where consolidated volume came to 2.02 billion shares, compared to 1.97 billion shares on Tuesday. - Article by Amrit Hallan for CMR news.

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