[BRIGHT INFO] "A Cup of Tea"

Good day to you.
US stocks closed mostly higher Wednesday after the Fed said the economy was on the mend and orders for big-ticket manufactured items posted an unexpected increase. Although DJIA fell modestly, the broader market measures ended the day with gains. The central bank's decision to leave its key lending rate at a low of zero to 0.25 % was anticipated. DJIA fell 0.3 %, S&P 500 index rose 0.7 %, Nasdaq composite index rose 1.6 %.

Major Southeast Asian stock markets rose on Wednesday, ending two days of falls, with financials and energy heavyweights leading the way ahead of news from a U.S. Federal Reserve policy meeting. Indonesia leads regional gains, jumping 4.3 %.

The market surge to bargain-hunting but said that concern over the outlook for the global economic recovery would continue to keep markets in check.

STI climbed 2.4 %, SETI rose 2 %, JCI jumped 4.3 % after a combined fall of around 4 % over two days, boosted by gains in energy-related and banking stocks.

Crude oil for August delivery fell 57 cents, or 0.8 percent, to settle at $68.67 a barrel. Tin rose 1.1 % to $14,750 a ton. Nickel climbed 6.1 % to $15,500 a ton. PALM oil futures yesterday tracked crude oil and soybeans lower on concern the global recession will slow demand for its use in food and fuel applications. Palm oil for September shed as much as 2.4 per cent to RM2,231 a ton.

After surge 4.3 % JCI still have room for upside. Strongest rupiah will support the market and some fund will maintain sentiment for window dressing at the end of June. We put range trading for JCI at range 1970-2035 index for today.

Commodity, especially on metal and energy will be a trigger for today. After Nickel surge 6.1% INCO and ANTM will be get positive issue. Top Pick still on TLKM for defensive stock, ANTM, INCO, TINS, PGAS, BUMI, BNBR, DEWA, ASII, BMRI, BDMN and BBRI.

We are maintain positive for our market with JCI target still at 2187.5 point index for year end.

“Planning for Growth”

[Personal Opinion ]
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DISCLAIMER: This report is issued by [BRIGHT INFO]. Although the contents of this document may represent the opinion of [BRIGHT INFO]. We cannot guarantee its accuracy and completeness.

Reuters Dow slips, Nasdaq up after Fed, Oracle

NEW YORK (Reuters) - The Dow fell for the fourth day and other indexes ended well off the day's highs on Wednesday after the Federal Reserve reiterated concerns about the economic outlook at the end of its policy meeting.

Technology shares sustained some strength, bolstered by stronger-than-expected quarterly results from software maker Oracle Corp (ORCL.O).

The Fed, as expected, left the benchmark fed funds rate at almost zero. The bond market sold off on disappointment that the Fed did not announce an acceleration or increase of its purchases of Treasury and mortgage-related debt.

Stocks also pulled back, as the Fed did not suggest in its statement that it sees any notable recovery any time soon.

"The Fed is a little more downbeat than the market has been ... that they're emphasizing the weakness is a touch disappointing to me and to the markets," said Jim Awad, managing director at Zephyr Management in New York.

Before the release of the Fed's statement, all three major stock indexes were solidly higher, with the Nasdaq up more than 2 percent. Investors were encouraged by a stronger-than-expected report on monthly durable goods orders, which pointed to increased economic demand.

The Fed's words on the economic outlook were mixed. The central bank said the economy was likely to remain weak for a time, but the contraction's pace was slowing.

The Dow Jones industrial average .DJI was down 23.05 points, or 0.28 percent, at 8,299.86. But the Standard & Poor's 500 Index .SPX was up 5.84 points, or 0.65 percent, at 900.94. The Nasdaq Composite Index .IXIC was up 27.42 points, or 1.55 percent, at 1,792.34. more...

Bloomberg Fed Keeps Purchases Unchanged; Says Recession Easing

June 24 (Bloomberg) -- The Federal Reserve refrained from increasing its $1.75 trillion bond-purchase program, said the pace of economic contraction is slowing and predicted inflation will remain “subdued for some time.”

“Substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time,” the Federal Open Market Committee said in a statement after a two-day meeting in Washington where it also kept the benchmark interest rate between zero and 0.25 percent. The rate will stay at “exceptionally low levels” for an “extended period.”

Chairman Ben S. Bernanke is watching to see how quickly the economy can recover from the deepest recession in five decades: Orders for durable goods unexpectedly rose in May, a government report showed today, while unemployment continues to climb. The Fed also wants to quell concerns that the $1 trillion expansion in its balance sheet will fuel inflation, pushing bond yields higher and crippling any rebound in the economy.

“The Fed wants to be clear they are not raising rates anytime soon,” said John Silvia, chief economist at Wachovia Corp. and a former economist in Congress. “They are leaving their options open. The plan is to stay the course at this point in time.”

The Fed said “the pace of economic contraction is slowing” and noted “conditions in financial markets have generally improved.” The central bank added that it “is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.” more...

CNBC More Signs of a Slow Recovery Fuel Worries of Market Pullback

More signs that the US economy is making a slow recovery are fueling worries that a market correction is in the works.

The Federal Reserve's decision Wednesday to keep interest rates low because of the weak economy took the air out of a stock market rally and heightened concerns that some of Fed Chairman Ben Bernanke's "green shoots" were turning brown.

While no one is putting forth any doomsday scenarios—calling the low in March still seems a safe bet—the idea of a substantial summer pullback is gaining momentum.

Buffett Tells CNBC: Economy In Shambles
"Slow growth and higher taxes—that's not a recipe for higher stocks," says Michael Pento, chief economist for Global Delta Advisors in Parsipanny, N.J. "The threat of a deflationary spiral is looking pretty good for now and that's what spooked the market.

The dour signs for the economy have been piling up lately. The White House on Monday conceded that 10 percent or worse unemployment is fairly inevitable, while the World Bank earlier that day predicted slow global growth.

At the same time, talk has accelerated for a Fed exit strategy from its onslaught of money easing and other liquidity measures. On top of all that, the Mortgage Bankers Association predicted far fewer originations this year than originally thought, and the National Association of Realtors said existing home sales in May gained less than expected, which was followed by a report that new home sales had unexpectedly decreased. more...

Associated Press Recession may be near bottom, new data suggest

Manufacturing data show recession near bottom; drop in new home sales signals slow recovery

WASHINGTON (AP) -- New signals the recession could be nearing a bottom emerged Wednesday in figures showing that orders to U.S. factories surged last month for everything from computers to aircraft and that a gauge of business investment rose by the most in nearly five years.

Still, an unexpected drop in new-home sales in May made clear that any rebound in the housing market, and the broader economy, likely will be long and slow.

Economists said the two reports showed an economy no longer in free-fall but still unable to mount a sustained recovery from the longest recession since World War II.

Hours after the Commerce Department figures were released, policymakers at the Federal Reserve decided to leave a key interest rate unchanged at a record low between zero and 0.25 percent, where it has been since December. Wrapping up a two-day meeting, the central bank repeated a pledge to leave rates low "for an extended period" to give the weak economy time to heal.

Though energy and other commodity prices have risen recently, the Fed said inflation will remain "subdued for some time." But Fed policymakers offered no new assurances that they would step up their purchases of government bonds and mortgage securities to try to drive down rates on consumer debt. That rattled bond investors who fear the prospect of higher interest rates. So did the Fed's observation that commodity prices are rising.

The mention of higher prices hit the Treasury market because the value of returns on fixed-income investments can erode quickly if inflation occurs. Stocks also fell after the Fed's announcement. The Dow Jones industrial average closed down 23 points at 8,299.86. Broader stock averages ended the day higher, though.

The 1.8 percent increase in durable goods orders in May was far better than the 0.6 percent decline that economists expected. It matched the rise in April, with both months posting the best performance since December 2007, when the recession began. more...