Morning MoneyBeat Asia: Fed, Yellen Give Stocks a Mild Boost

        Market Snap: At the New York close: S&P 500 rose 0.2% to 2100.44. DJIA added 0.2% to 17935.74. Nasdaq Comp gained 0.2% to 5064.88. Treasury yields declined; 10-year at 2.306%. Nymex crude oil slipped 0.1% to $59.92. Gold up 0.6% to $1,187.60/ounce.
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        How We Got Here: U.S. stocks ended slightly higher after the Federal Reserve signaled that interest rates could increase more slowly than officials had expected.
        As in recent sessions, stock-market volume was lighter than average, with just 6.1 billion shares exchanging hands.
        The forecasts released by the Fed showed most officials expect to begin raising short-term interest rates before the end of the year. But Fed officials lowered their interest-rate forecasts for 2016 and 2017 by a quarter percentage point, suggesting they've become less certain about the strength of the U.S. economy in the longer run.
        The Fed characterized economic growth as moderate in its statement. In the news conference, Chairwoman Janet Yellen reaffirmed that the decision to raise rates will be dependent on incoming economic data.
        "The growth is positive, but not so positive that the rate hikes have to happen in a knee-jerk fashion," said Joe Spinelli, head of single stock trading for the Americas at Deutsche Bank. "The slower the Fed moves...the market will view that as bullish for equities," he added.
        U.S. stocks have rallied since the financial crisis, driven in part by the Fed's easy-money policy. The S&P 500 has more than tripled since March 2009. But concerns about elevated valuations, uneven economic growth and corporate earnings growth have kept a lid on stock-market gains this year. The Dow has added just 0.6% and the S&P 500 has gained 2% in 2015.
        In the longer run, some investors say stocks will be able to push higher as the Fed begins to raise rates, since it will only move when it feels confident about the outlook for economic growth.
        Coming Up: Bank Indonesia's Board of Governors is scheduled to issue its monetary policy decision Thursday. The central bank is between a rock and a hard place. The slowdown in the Asian region's economies, marked by a sharp drop in Chinese demand for Indonesia's commodities, is holding the domestic economy back. But because of the country's wide current-account deficit, this downturn is hurting the rupiah -- to the extent that it risks creating financial turmoil. Against that threat, the central bank can't afford to cut rates further, however much producers might want it to.
        What You Missed Overnight
        Fed Signals a Gradual Pace for Rate Rises: The Federal Reserve kept interest rates near zero and signaled it was moving toward increases later this year, but the path could be less steep than anticipated.
        J.P. Morgan Deal Maker Jimmy Lee Dies: James B. Lee, one of the best-known and most-successful investment bankers on Wall Street who played a key role in the evolution of deal making over a 40-year career, has died. He was 62.
        Regulators Near Pacts to Settle U.S. Rate Probes: Several banks are expected to each face hundreds of millions of dollars in fines to resolve allegations that traders manipulated the ISDAfix swap rate. The regulator also is weighing punishments against London-based broker ICAP.
        Fitbit IPO Prices at $20 a Share, Above Expectations: Fitbit Inc., the maker of wearable fitness-tracking devices, priced its initial public offering at $20 a share, above already raised expectations, according to a person familiar with the offering.
        From The Wall Street Journal
        The Secret Math of Airbnb's $24 Billion Valuation: Airbnb representative have told prospective investors in a new financing round that it expects revenue this year to top $900 million and grow to $10 billion in 2020.
        India's Investors See Gold in Stocks: Disappointed by lackluster returns on traditional bets, individual investors in India are diving into the country's stocks.
        China Buyout Wave Reaches New High: Chinese Internet firm Qihoo 360 Technology received a management-buyout offer valuing it at about $9 billion, marking potentially the largest deal yet in a wave of going-private offers for U.S.-traded Chinese firms.
        China Travel Sites Take Flights of Fancy: China's red hot travel websites are benefiting from talk of consolidation. But the ticket price may be too high for investors.
        From MoneyBeat
        Stocks Pop After Fed Lowers Interest-Rate Outlook: The devil's in the dot plot. The median dot on the Federal Reserve's plot of where 17 central bank participants see interest rates heading as of Wednesday fell for 2016 and 2017, suggesting rate rises will be more gradual than previously anticipated.
        Remembering J.P. Morgan's Jimmy Lee: The sudden death of J.P. Morgan Chase & Co. Vice Chairman Jimmy Lee stunned Wall Street Wednesday, as friends and rivals alike grappled with the loss of one of Wall Street's most formidable deal-makers.
        A Ghost of Fannie and Freddie's Past Haunts Capitol Hill Hearing: When Massachusetts Democrat Rep. Michael Capuano insisted this had been the case "from day one," the Treasury Secretary reminded him that prior to 2008 there was no explicit government backstop for Fannie and Freddie. Indeed, many denied there was even an implicit backstop. Mr. Capuano shot back, incredulously: "Who denied that?"
        Allergan Deal for Kythera Needles Balance Sheet: Never underestimate the propensity of Americans to stick needles in their faces.
        (END) Dow Jones Newswires

        June 17, 2015 19:48 ET (23:48 GMT)

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