Stocks climbed to a multi session high as the Dow opened the trading week with a 113 point gain on light volume to close at 17,920.
Federal Reserve Chair Janet Yellen gave a speech to the World Affairs Council today and in it she was cagey about policy saying that while she wanted to normalize rates she was concerned about global growth. She seemed to indicate that September could be a better time for the next rate hike. Meanwhile the boys at BTS Capital continued to speak highly of the economy and are expecting a 3% GDP growth number for Q2 as strong retail sales and stable energy prices indicate economic progress in the US. They also noted that there is solid demand for high yield bonds by pensions, insurance companies and foreign buyers looking for yield in a low yield environment.
The Federal Energy Regulatory Commission or FERC has approved a major pipeline expansion and LNG export facility for US based natural gas pipeline giant Kinder Morgan. The news sent shares higher as it brightens the growth outlook for the company but more importantly it will allow them to better serve power plants in the region that are switching from coal to gas. The $2 plus billion project is expected to come online later this year and into next year.
WTI oil gained 2.3% to $49.76 per barrel on supply concerns while gold rose by $5 per ounce to $1,247 per ounce. Both were affected by the Janet Yellen speech which seemed to push a rate hike a bit further down the “yellow brick road”.