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I'm Amy Anderson for OptionRallys News Team Let's take a look at the global market highlights
and news that all traders and investors should be aware of.
Is McDonalds irrelevant? Apple shares continue to nose dive
And What will the Federal Reserve decide today
Let's take a quick look at what is happening in the global markets now.
Apple and MacDonald's were in the headlines today as Wall Street recovered after 5 days
of losses. Both of these leading businesses weighed heavily on traders' minds but their
drag did not pull down the overall markets as traders are eagerly awaiting the Federal
Reserve tapering decision due later today. McDonald's reported lackluster quarterly results
last week. And company executives used the words "relevance," "relevant" and "relevancy"
a combined 20 times during its conference call with analysts. Translation: the leaders
of the Golden Arches are very concerned about whether the company is still relevant.
Positive US consumer confidence numbers and robust house price data, released after markets
opened, drove gains in the afternoon. The Dow gained 90 points, while the S&P 500 and
Nasdaq also got a bump. Apple shares couldn't break out of its rut
even after activist investor Carl Icahn said he bought another 500 million dollar worth
of shares, on top of the 1 billion he bought last week. Icahn has waged a public campaign
advocating that Apple return cash to shareholders through a stock buyback. Apple this week revised
its guidance downward upsetting traders. Meanwhile, there was positive news from Europe
as the United Kingdom reported its strongest yearly economic growth rate since 2007 and
consumer confidence rose in France. European stock markets advanced on Tuesday, climbing
back from their biggest three-day fall since June last year.
In the foreign exchange markets the United Kingdom's Office for National Statistics reported
that the country's economy expanded at the strongest pace since 2007 last year with gross
domestic product rising 1.9 per cent. The pound, however, initially moved lower as the
slower growth rate in the fourth quarter eased pressure on the Bank of England to raise interest
rates this year. The US dollar traded virtually flat against other major currencies on Tuesday
ahead of the Federal Reserve's update of monetary policy.
Moving to the commodities market gold ended the session moderately lower as traders wait
on the Federal Reserve decision and markets calm worries about the emerging markets after
reassurance from IMF chief LaGarde saying these is no crisis. Gold is trading at 12-51.75.
Crude oil prices rebounded as the United States was swept by another frigid cold front that
sent heating fuel and natural gas prices up in some areas. Traders also were looking ahead
to the US Department of Energy's weekly report on US petroleum inventories on Wednesday.
This is Amy Anderson from OptionRally signing off. Follow me on Facebook and watch for our
new financial terms of the day and our weekly events news.