Saturday, August 27, 2011

US close: Investors seize on postives from Bernanke speech

Global Currency, American flag with globe symbol and dollars on background Stock Photo - 6623476
Stocks finished higher amid differing reactions to Federal Reserve chairman Ben Bernanke’s speech at the central bank’s annual meeting in Jackson Hole, Wyoming.

Depending on who you listen to, Bernanke either left the door open for further action to stimulate the economy or said that the economy is still doing well and doesn’t need such measures.

The Dow Jones finished up 134 at 11,284, the S&P 500 gained 17 to close at 1,176 and the NASDAQ added 60 points, closing at 2,479.

In other economic news, the US economy grew at a 1% annual pace in the second quarter, the latest estimate shows, down from a previous guess of 1.3%.

The Fed is holding its annual meeting in Jackson Hole, Wyoming and some traders expect Bernanke to outline possible measures to kick-start the US economy.

In stocks news, jewellery Tiffany sparkled after raising its earnings forecasts as its second quarter performance beat expectations.

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