Market Minute: Investor Focus Turns to Bernanke; Yahoo Still Struggling

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It's all about Ben Bernanke today, and Yahoo's turnaround still has a long way to go. Those stories and more are what's in business news Wednesday.

The Dow Industrials (^DJI) fell 32 points Tuesday, the Nasdaq (^IXIC) lost 9 and the S&P 500 (^GPSC) dropped 6, snapping an eight-session win streak.

federal reserve chairman ben bernanke economy congress testimony stimulus
Andrew Harrer/Bloomberg via Getty ImagesFederal Reserve Chairman Ben Bernanke
Investors will focus Wednesday on the congressional testimony of Fed Chairman Ben Bernanke -- and consumers should, too. Analysts will be parsing every word for clues about how quickly the Fed will begin cutting back on its massive bond-buying program.

The decision will affect stocks, Treasury bonds, the effort to bring down unemployment, and your ability to get a loan. His testimony will overshadow the Fed's Beige Book report on regional economic activity, due out this afternoon.

Bank of America's (BAC) earnings jumped 70 percent from a year ago, led by its investment banking operations. The results topped expectations.

Also out this morning, results from Bank of New York Mellon (BK), Abbott Laboratories (ABT) and Mattel (MAT). Mattel said its second-quarter net income fell 24 percent, pulled down by an impairment charge. The toymaker's revenue edged up but came in below expectations.

Despite lots of changes over the past year, Yahoo (YHOO) is still struggling. The Internet company posted sharply higher quarterly net, but investors are focused on a drop in ad revenue and a disappointing forecast for the full year.

After the close, we'll hear from three other tech giants: IBM (IBM), Intel (INTC) and eBay (EBAY).

Chevron (CVX) is making a big bet on shale oil and gas deposits in Argentina. It agreed to pay most of the $1.5 billion to form a joint venture with Argentina's state-run energy company. Chevron is hoping to repeat the success it's had with shale oil in Canada.

The California-based utility PG&E Corp. (PCG) could face more than $2 billion in fines and penalties for its role in the natural gas pipeline explosion in San Bruno three years ago that killed eight people and destroyed dozens of homes.

And one of the big losers today is likely to be Zagg (ZAGG), which makes accessories for consumer electronics. The problem is, it didn't sell enough of them last quarter, and it lowered its sales forecast for the full year.

-Produced by Drew Trachtenberg.


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14 Comments

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Dan

Quantative easing had to end eventually. The era of free loans will come to an end. Then folks with savings and money market accounts will start to see a little interest from their investment. Nothing wrong with that, is there? That's the normal way of things. Investors have paid for the whole thing, one way or another.

July 17 2013 at 4:44 PM Report abuse rate up rate down Reply
toosmart4u

If you are drawing social security you should thank a democrat. If you want to end it and do not need the monthly checks, vote republican. They are hell bent on ending this program. You may just get what you vote for.

July 17 2013 at 4:11 PM Report abuse +1 rate up rate down Reply
Gumby

Ben is a genius at pushing a bowl full of spagehtti!

July 17 2013 at 4:01 PM Report abuse rate up rate down Reply
poor_paddly_poor

Come on Ben, keep printing, I need to cash in before the market crashes.

July 17 2013 at 12:51 PM Report abuse +1 rate up rate down Reply
appeallawy

When the Chairman of the Federal Reserve persistently says that the Congress of the United States is the problem it's time that the voters listened beyond the boundaries of their Congressional Districts. The Nation needs infrastructure salvaging, mass rail transit, alternative energy solutions, tax reform, dissolution of overly large "institutions" (the obscene profits recorded by the financial industry should indicate that banking is a thieves carnival at the public expense) and a re-incarnation of civil liberties.

July 17 2013 at 11:44 AM Report abuse -2 rate up rate down Reply
providence691213

Yay!!! More worthless paper money with fancy pictures! Wiemar Republic, here we come! END THE FED!

July 17 2013 at 10:59 AM Report abuse +2 rate up rate down Reply
jguss69

i fear that obama will use bernanke to create a crisis which could lead to possible dollar crashing . which may lead to a martial law situation. obama would luv full control..............

July 17 2013 at 10:34 AM Report abuse -1 rate up rate down Reply
mgh406

The great manipulator continues to help the big banks and the wall street moguls, knowing he is not helping the employment status. He won't be honest about inflation and the dollar value. So much for a free market economy.

July 17 2013 at 9:34 AM Report abuse +1 rate up rate down Reply
dollibug

Believe only what you care to believe.....anyone can voice their own opinion.....doesn't mean it is the truth, the whole truth and nothing but the truth.....as I think we all know.

July 17 2013 at 9:28 AM Report abuse +1 rate up rate down Reply
scottee

why does this guy...and congress...have so much power?
how stupid are we to allow it?

July 17 2013 at 9:26 AM Report abuse rate up rate down Reply