Breaking Wall Street Market News & Reports

All eyes were on Federal Reserve Chairman Ben Bernanke today, as the central banker began a two-day venture on Capitol Hill. Issuing his semi-annual assessment of the economy, the Fed chief didn’t disappoint, assuring Congress that last week’s move to boost the rate on emergency loans to banks doesn’t necessarily indicate more rate hikes in the near future. As a result, the Street let out a collective sigh of relief, sending stocks soaring in late-morning activity. Though the government’s report that new-home sales unexpectedly fell to a record low in January helped to limit the bulls, the major market indexes settled in the positive territory nonetheless, halting a two-day downturn. The Dow finished in the black for a 91 point gain.

The Federal Reserve chairman’s poise during his testimony on Capitol Hill seems to have counterbalanced a gloom fest on Wall Street. I must praise the Fed chief’s insistence that interest rates will be kept low in order to stimulate the economy. That in turn should create much-needed jobs.

Excerpts from the meeting this morning:

“The country has lost 8.4 million jobs in a little more than two years in the most severe economic downturn since the Great Depression. Job losses were abating, but also acknowledged the recession’s toll on American workers. Notwithstanding the positive signs, the job market remains quite weak, Bernanke told the House Financial Services Committee. The U.S. central bank’s policy-setting Federal Open Market Committee was prepared to support the economy with extraordinary stimulus for some time. The FOMC continues to anticipate that economic conditions—including low rates of resource utilization, subdued inflation trends, and stable inflation expectations—are likely to warrant exceptionally low levels of the federal funds rate for an extended period, echoing the Fed’s most recent policy statement in late January. Under current projections, we have a deficit and a debt that will continue to grow. We do not believe the U.S. credit rating would be downgraded. However, that the time would come for tighter policy and he argued the Fed possesses a broad array of tools to remove such accommodation when the time is right. Among the Fed’s options, are reserve-draining transactions with financial institutions. One such program, a “term deposit facility” that would give banks the incentive to park their money at the central bank”

As this meeting progressed, another headline ignited the bull run stating “Senate approves $15 Billion Job Package“ It includes tax breaks and highway spending that aims to bring down the country’s stubbornly high unemployment rate. By a vote of 70 to 28, the Senate approved the bill and sent it on to the House, which could approve the measure quickly for President Barack Obama to sign into law. The legislation includes a $13 billion payroll tax break for businesses that hire unemployed workers, along with subsidies for state and local construction bonds. The bill would also extend highway and mass transit programs through the end of the year and pump $20 billion into them in time for the construction season. Economists say the tax breaks could create perhaps 250,000 jobs. The bill’s costs are offset by a crackdown on offshore tax shelters. It also included 13 Republicans in favor of the Bill. The Jobs Bill to some believe that money should have been used to pay the deficit.

I still believe the market still has a lot sifting to do especially when earnings top out and consumers continue to tighten their belts. Consumers is what drove the economy the last 40 years. It’s not like we’re manufacturing or producing  anything here in the States anymore.

Other news:My morning announcement of COIN did not pan out as I had hoped and may have been a bit premature ahead of Converted Organics Inc. announcement of voluntarily removing its Unit Ticker COINU off of the NASDAQ (not our COIN ticker). Story can be found here We do apologize but strongly believe it certainly won’t retest the all time low. If we fall below the .85 level all bets are off. I hope you can stomach the volatility as I mentioned that this a risky play with a huge reward. Just an FYI the de-listing notice is common as SIRI is too on the list when the share price is below a $1.00 per share. It must remain above a $1.00 for an extended period to meet SEC’s requirement. Tomorrow looks on course for extending to the downside. Remember to place your stop loss at .85. In the mean time sit tight. It may take a few weeks to pop while they transfer COINU (Unit shares) to the common share COIN.

DDR (10.38) continues to show tremendous support and is on track of breaking the 52 week high of 10.66 very soon!!! FYI March $10 call strike now at .65

ACE