Why the Dow Is Up Today
The Dow Jones Industrial Average (INDEX: ^DJI) was down this morning but jumped after the Fed announced that there will be no interest rate hikes until late 2014 at the earliest. At 1:30 p.m. EST, the Dow was up 46 points to 12,721.
After the Fed announced the decision, long-term treasury bonds went up in price, dropping their yield; the 10-year Treasuries yield is now 1.94%. Also up were mortgage REITs, led by Annaly Capital Management (NYS: NLY) , which are dependent on low interest rates to finance their mortgage buying.
Leading the Dow up is American Express (NYS: AXP) . The stock is up 1.9% to $50.19, bucking the financial sector's trend today. Last week, investors were concerned that falling credit quality could hamper its results, but investors today seemed to have changed their mind.
Runner-up is General Electric (NYS: GE) , which is up 1.3% to $19.09. The company reported earnings on Friday. Analysts expected earnings per share of $0.38 and revenue of $40 billion. The company beat expectations on the earnings side, with earnings per share of $0.39, but fell short on revenue, reporting just $38 billion.
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At the time this article was published Dan Dzombak owns shares of Annaly Capital Management, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Annaly Capital Management. Motley Fool newsletter services have recommended buying shares of Annaly Capital Management; and creating a write covered strangle position in American Express. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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