The US markets closed mostly lower on Monday, despite Dow and S&P 500 rising to a record high but finished the trading session lower from the highs of the day. Investors will be keeping a close eye on the Fed in particular during the coming months. The Senate Banking Committee will vote on Thursday on the nomination of Janet Yellen to be the chairwoman of the Federal Reserve. William Dudley, the president of the New York Federal Reserve stated that the US economy could be doing better, and anemic growth could give way to stronger growth over the next two years. Dudley added that he saw signs that the drag from steep cuts in government spending and higher taxes was lessening at the same time that fundamental underpinnings of the economy are strengthening. Charles Plosser, the president of the Philadelphia Federal Reserve stated that the Federal Reserve should bring to an end its $85 billion a month asset-purchase program. The economy is likely to pick up to a 3% growth rate in 2014 and the unemployment rate should drop to 6.25% by the end of that year. Plosser notified that the Fed should stop playing this bond-buying game by ear because it risks the Fed’s credibility.
On the economy front, a gauge of home-builder confidence paused this month, missing forecasts, as sales expectations for single-family homes slightly declined. The National Association of Home Builders/Wells Fargo housing-market index was 54 in November, matching a downwardly revised reading for October, which was the lowest in four months.
The Dow Jones Industrial Average added 14.32 points or 0.09 percent to 15,976.00, the S&P 500 was down 6.65 points or 0.37 percent to 1,791.53, while Nasdaq lost 36.90 points or 0.93 percent to 3,949.07.
Indian ADRs closed in green on Monday; Infosys was up 0.75%, ICICI Bank was up 0.75%, HDFC Bank was up 0.68%, Wipro was up 0.17% and Tata Motors was up 0.16%.
