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...
- A Suit to Watch: IBM is going to court... as the defendant. That's because Mexican mobile phone operator Iusacell SA de CV has sued IBM Corp. (NYSE: IBM) on fraud allegations. The plaintiff claims IBM made a number of false claims that led to a $2.5 billion loss for the Mexican phone company. Terms of the suits are still unclear due to the heavy number of redactions in court filings.
- It's On: Shares of SodaStream International Ltd. (Nasdaq: SODA) soared as much as 11% today. The boost followed news by an Israeli paper that the household soda-machine manufacturer is looking to sell a minority stake to a major soft-drink producer. According to Calcalist, the company aims to sell a 10% to 16% stake at a $1.1 billion valuation. Possible investors mentioned in the report included Dr. Pepper Snapple Group (NYSE: DPS), PepsiCo Inc. (NYSE: PEP), and Starbucks Corp. (Nasdaq: SBUX).
Wednesday's Top Three Profit Opportunities
- These CEOs Will Make You Rich: Some of the most important of Bill Patalon's personal investment maxims have to do with leadership and a company's management team. And leadership starts with the CEO. As one of Bill's precepts holds, "A good CEO can create a very strong company. But a great CEO can create an empire." This includes these great leaders who will make you rich...
- Get Your Share of an Extra Trillion Euros: The U.S. Fed began winding down its latest QE program (for now), and the baton's been passed to Japan with its own massive easing campaign. But lack of inflation and concerns about outright deflation are again gripping Europe. So the latest "noise" from the IMF and European Central Bank is signaling that Europe is about to crank up its own printing press. While the implications may be serious, the profit opportunities are even bigger...
- This Great Profit Play Has Another Catalyst Coming: Over the summer, Michael Robinson told readers a great way to get two stocks for the price of one through corporate spin-offs. The great thing for investors is that by owning stock in the parent company, they generally get shares in the spin-off automatically as special dividends, often tax-free. And now, Michael wants to tell you about one spin-off that is poised to make investors a huge payday in 2014. You don't want to miss this profit wave...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.