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The Dow Jones today ended up 1.00% to 16,424.65 on U.S. Federal Reserve Chair Janet Yellen's comments that the U.S. economy was on the rise.
Yellen said the Fed expects the economy to reach maximum employment and meet inflation targets by the end of 2016. The Fed predicts an unemployment rate between 5.2% to 5.6% and an annual inflation target between 1.7% and 2%.
The Standard & Poor's 500 Index rose 1.05% to 1,862.31, and the Nasdaq rose 1.29% to 4,086.23.
Here's your recap of today's major market events:
- An Impressive Debut: Class A shares of Moelis & Co. (NYSE: MC) began trading today and jumped 5.6% from its offering price. The boutique investment bank, headed by dealmaker Ken Moelis, raised $162.5 million, pricing 6.5 million shares at $25 a share. Bloombergreports that Ken Moelis will retain 95% control of the firm's voting position by holding a large share of B-class shares, which were not part of the IPO and count for 10 votes each. Moelis defended the unusual share structure for the company, saying that he is "protecting the investors."
- Yahoo for Yahoo!: Shares of Yahoo! Inc. (Nasdaq: YHOO) surged after reporting revenue growth for the first time in more than a year. During its first-quarter earnings report, the company cited growth fueled by display-ad revenue excluding traffic commissions, which increased 2% from the same quarter last year. The company also benefitted from a surge in revenue from Chinese e-commerce giant Alibaba. Yahoo holds a 24% stake in Alibaba, and it will sell 10% of its share during the e-company's initial public offering, according to existing terms. Alibaba may file its intent to go public as soon as next Monday.
- Vegetarians Suffer Too: According to the Wall Street Journal, food produce prices are soaring, placing a strain on Americans as the summer months approach. According to the numbers, lettuce will increase by 30%, avocados by 28%, and broccoli by 22%. Corn prices are likely to surge another 14%. The paper explains that the California drought, which has entered its third year, will create yet another difficult growing season for farmers and ripple across the country. Last week, we reported how beef and pork prices are also set to surge this summer, threatening discretionary spending at a time when the economy is trying to show some life. To offset rising food costs, here's how you can profit…
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.