Volatility in the markets continues as the Dow posted a 299 point loss on heavy trade to close the day at 25,410. The cause of the pullback was comments by the new Federal Reserve Chairman Powell to Congress about the interest rate outlook this year which calls for 3 more rate hikes based on indications of strong economic growth. Investors should expect more back and forth action as traders and investors digest economic data and the possible effects that rising interest rates and higher inflation will have on the economy.
Bank of America announced plans to open 500 new branches across the fruited plain and remodel another 1,500 locations over the next 4 years. The new look bank branch design will have cool furniture and a design which focuses on technology. As part of this effort, the company plans on adding 5,400 to its headcount.
Retail stocks were higher after Macy’s reported earnings which beat estimates. The company posted a 2% increase in revenues and a 40% jump in net income. Macy’s reported that its online sales increased for the 34th consecutive quarter and this, combined with its physical locations reveal that it has turned a corner and is adapting to the disruptive new world created by Amazon. Macy’s brick and mortar locations are also gaining attention from the gurus as they hold good value as real estate in prime locations.