Wall Street Rebounds
It was about time for a rebound on Wall Street.
The Dow snapped a four-day losing streak, gaining 26 points on Tuesday, while the Nasdaq rose 18, closing above its 200-day moving average. The S&P 500 added 7 points, but it ended slightly below its 200-day MA.
Futures this Wednesday morning are soaring, with the Dow Industrials indicating a gain of 100 points when the market opens.
Today's focus is on the European Central Bank's decision on interest rates. The ECB kept rates steady at the record low of 1%, but investors will be eyeing how officials plan to respond to the debt crisis that has rattled Greece, Ireland, Portugal, and now Spain.
Here in the U.S., the Federal Reserve will give traders a glimpse of regional economic activity across the nation. If the data come in weaker than expected, that will increase calls for the Federal Reserve to inject further stimulus into the economy.
Janet Yellen, central bank "dove" and proponent of that stimulus, speaks in Boston at 7 p.m. ET this evening. If you recall, the Federal Reserve vice chair said a few weeks ago that there was a high threshold for further quantitative easing.
Her comments precede testimony Thursday morning by Federal Reserve chairman Ben Bernanke in Washington.
Meanwhile, Nasdaq plans to compensate investors and trading firms for the problems tied to Facebook's (NYSE:FB) IPO on its exchange last month. Those losses are estimated at around $100 million.
It's a first step to make amends for the delayed and troublesome debut of the stock, which has rattled Wall Street's confidence in not only the Nasdaq's handling of the IPO, but also Facebook's own growth possibilities. Facebook shares fell again yesterday and are now down 32% since the IPO.