The Fed Announces... | Investor Beat - 9/18/13 | The Motley Fool

TL;DR

The Fed announced that it will continue its bond-buying program at a rate of $85 billion per month, causing the stock market to hit new highs for the year.

Transcript

the FED issued a statement at 2:00 this afternoon and I recommend reading it especially if you're having trouble sleeping at night investor beat starts now thanks for watching I'm Chris Hill the down NASDAQ and S&P 500 were all down for most of the day as pretty much everyone expected the FED to announce plans to begin tapering its Bond buying prog... Read More

Key Insights

• 😮 The Fed's decision to maintain the bond-buying program suggests that the economy is still weak and there are concerns about rising interest rates.
• 😮 Executives like Lloyd Blankfein were surprised by the Fed's decision and expected a tapering of the program.
• 💩 With the stock market hitting new highs, some investors may want to consider taking profits and reducing their positions.
• 🙈 Stocks like Clean Energy Fuels, FedEx, General Mills, and Adobe Systems saw significant movements due to various factors.
• ❓ Clean Energy Fuels benefited from CEO confidence and a partnership with General Electric.
• 🌓 FedEx's first-quarter profits exceeded expectations, indicating positive economic growth.
• 📈 General Mills' sales were better than expected due to International Acquisitions and successful consumer trends.

Questions & Answers

Q: What is the Fed's announcement regarding its bond-buying program?

The Fed has decided to continue purchasing bonds at a rate of $85 billion per month, indicating that it believes the economy is still weak.

Q: Why did CEOs, like Lloyd Blankfein, expect the program to be tapered?

CEOs anticipated a scaling back of the bond-buying program to address rising interest rates and economic concerns. However, the Fed's decision was contrary to their expectations.

Q: Should investors consider selling their stocks now that the market is at all-time highs?

If investors are concerned about the market's performance and have gained substantial profits, it might be a good opportunity to sell and secure their gains.

Q: Which stocks were notable movers today?

Clean Energy Fuels saw a significant increase after its CEO bought shares, FedEx hit a seven-year high due to rising profits, General Mills performed better than expected due to International Acquisitions, and Adobe Systems reached an all-time high due to strong web subscription numbers.

Summary & Key Takeaways

• The Fed's decision to maintain its bond-buying program suggests that the economy is still weak, despite the stock market hitting all-time highs.

• CEOs, including Lloyd Blankfein from Goldman Sachs, were surprised by the Fed's decision, as they expected a tapering of the program.

• With the market reaching new highs, some investors may consider lightening their stock positions.