Market Wrap: Bernanke Defends Fed Action; JPMorgan CIO Exec Says 'So Long!'; Manufacturing on Fire

October 1, 2012 5:46 PM EDT
Market wrap-up for October 1st, 2012

End of the Day: S&P 500 up 3.8 to 1,444.49; Dow Jones up 78.0; Nasdaq down 2.7 to 3,113.53

The following is a brief summary of events moving markets today:
  • He'll say it once and say it again: Fed chairman Ben Bernanke issued comments to the Economic Club of Indiana today, defending the Fed's role in fiscal policy and inflation. Following new rounds of stimulus announced in September, Bernanke today said rates would remain low due to economic growth not being robust enough to trim the unemployment rate, which has been lingering over 8 percent for a number of years.

    He noted the target of mid-2015 for rates to rise didn't necessarily mean that the Fed thought the economy was going to struggle that long, simply that the policy would reinforce strength after growth momentum is in place.

  • It's so hard to say goodbye: JPMorgan (NYSE: JPM) CIO executive Irene Tse said to be leaving the firm to start her own hedge fund. Tse joined JPMorgan from Goldman Sachs (NYSE: GS), where she had been a partner, and manged money for Stan Druckenmiller's Duquesne Capital Management, before joining JPMorgan

    The bank has been looking to ease risk in the unit since disclosing a massive trading loss in May tied to trades made in London. In total, JPMorgan is said to have lost $5.8 billion in the first half of 2012.

  • U.S. manufacturing back in expansion mode: ISM data Monday had manufacturing PMI moving up to 51.5 percent last month, up from 49.6 percent in August and Street expectations for a slight tick higher to 49.7 percent. The jump was led by strong new orders and prices.

    Click here for more color.

  • Airplanes aren't the only thing flying around: AMR Corp's (OTCBB: AAMRQ) American Airlines will be inspecting a handful of Boeing (NYSE: BA) 757 aircraft between today and tomorrow following reports that seats have come loose on at least two of the planes. An initial reported was filed on September 29th, which, "indicated there could be a possible issue with a certain model of seats and how they fit into the tracking used to secure the seats," according to an AMR spokesperson.

    No injuries were reported.

  • Vet manager now on the outside: Steven Cohen's SAC Capital Advisors put portfolio manager Michael Steinberg on leave following recent allegations of insider trading. Steinberg hasn't been formally accused of any wrongdoing. He has been portfolio manager at Sigma Capital Management since 1997.

  • Mayer becomes a birther: New Yahoo! (Nasdaq: YHOO) CEO Marissa Mayer gave birth over the weekend. (Seems like a metaphor for the company, doesn't it? In a very roundabout sort of way.) Mayer had a boy, but no vital stats were made available.

    Notably, Yahoo! will be releasing third-quarter 2012 results on October 22, 2012, after U.S. markets close. The Street is expected EPS of 26 cents per share on sales of $1.08 billion. EPS growth would be 24 percent from the same period last year.
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