The market was weak early, giving back small overnight gains as investors waited for word from the Fed. After the rate decision, and then Chairman Ben Bernanke's press conference, it was off to the races. The Fed continues to maintain its dovish stance, believing the US recovery is moderate and inflation is increasing but not yet worrisome. There were no announced plans for another round of quantitative easing, but it is apparent the committee would not shy away from such a decision of the recovery sputters.
Commodities were the main beneficiary of Bernanke's testimony. Fertilizers and oil service stocks were down big on the day, but rallied during the press conference. The biggest winner on the day, though, was Amazon.com, Inc. (AMZN) which exploded nearly 8% the day after earnings. AMZN missed badly on EPS, but new spending on cloud endeavors was responsible. Big players appear to be very bullish on AMZN going forward. Also of note, silver amazingly made a new all-time high, squeezing more shorts on its way to a 6.75% gain.
*DISCLOSURE: Scott Redler is long JPM, AAPL, JDSU, GLD, GIGM, CIEN, LVS, WFC.
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