Kohl's, J.C. Penney and Nordstrom release disappointing earnings news, putting a damper on their sector.Retailread more
Bezos's comments give a rare glimpse into his interest in the auto industry. Amazon recently invested in two self-driving start-ups.Technologyread more
While investing often seems like a contrarian game where going against the flow feels like the better bet, the reality is that investors who bought the most-favored stocks...Hedge Fundsread more
"We are now embarking on a new Long March, and we must start all over again!" Xi Jinping said.Marketsread more
CBS plans to renew discussions for Starz with Lions Gate in the coming weeks, according to people familiar with the matter. If a deal happens, the remainder of Lions Gate...Technologyread more
The launch comes as Apple's laptops have been criticized for a keyboard that users say breaks easily and results in key presses that cause characters to double up or not...Tech Driversread more
Craig Irwin of Roth Capital Partners said Apple tried to buy Tesla six years ago for a higher price than where the stock now trades.Technologyread more
The economist thinks the Fed ought to pay more attention to financial markets when setting interest rates.The Fedread more
Connecticut state Sen. Alex Bergstein's divorce case with her husband, Morgan Stanley managing director Seth Bergstein, has exposed her new romantic relationship with her...Politicsread more
Donaldson was chief of staff to former White House counsel Don McGahn, who on Tuesday defied the Judiciary panel's subpoena to testify about special counsel Robert Mueller's...Politicsread more
As shopping has shifted online and styles have evolved, Ascena has been grappling with sagging sales and a large debt-load. Looking to stem the losses, Ascena is turning to...Retailread more
Fed Chair Janet Yellen rejected the notion that the Fed has a "third pillar" of policy to keep stock market prices afloat.
On the second day of her semiannual congressional testimony Wednesday, Yellen was asked by Rep. Edward R. Royce, R-Calif., whether the U.S. central bank's monetary policy is tied to boosting Wall Street's equity values — in effect a "third pillar" to go along with the Fed's dual mandate of full employment and price stability.
"We do not target the level of stock prices," she said. "That is not an appropriate thing to do."
The Fed has enacted three rounds of so-called quantitative easing, a monthly bond buying program that has seen its balance sheet soar to $4.5 trillion. The last round of QE ended in October 2014. Each round has seen a sharp rise in the stock market.
Though the Fed is out of the easing business for now, it has kept its interest rate target close to zero, hiking just once in the last 10 years. Each signal that the Fed is about to tighten policy has resulted in market volatility, prompting Royce to ask whether the central bank will be cowed by jangled nerves on Wall Street.
"We're going to look at what the trajectory is for the economy, for the goals Congress has assigned us, namely inflation and maximum employment, and take policies we think are appropriate to foster them," Yellen said.
However, Rep. Scott Garrett, R-N.J., charged that the Fed's policies have been targeted toward helping "the rich over the poor" by implementing policies that boost the market, where most of the value is held by the wealthiest people. He did not give Yellen a chance to respond.
In other matters, Yellen said she believes the recent weakness in job creation is "transitory" and does not reflect an otherwise growing economy.
The central bank chief sounded more optimistic than she has over the past couple of weeks, a time during which the Fed backtracked on what had been an aggressive path forward for interest rates.
"We are seeing a pickup in growth. There's been a sharp increase in consumer spending," Yellen told the House Financial Services Committee. "I'm very hopeful that we will see a pickup in growth. We will be watching for that as we assess the economy."
Yellen spoke a week after the Federal Open Market Committee slashed its expectations for future rate hikes. That decision in turn followed a much weaker-than-expected May jobs report, which showed that nonfarm payrolls increased by just 38,000.
In other matters:
On the jobs issue, Yellen said the economy has created "a lot of high-end jobs." She also said a generational low in labor force participation primarily is the result of an aging labor force, meaning that the decline in the rate could continue. The current participation rate is 62.6 percent, the lowest since December and near the worst since late-1977.
In addition to the weak May, the economy created just 123,000 positions in April and 186,000 in March. The May total was the worst month since September 2010.
The headline unemployment rate is at 4.7 percent and has fallen in good part due to the declining participation level. A measure that includes those not actively seeking work are holding part-time jobs for economic reason is at 9.7 percent, well above prerecession levels. Asked to give a level in the latter rate that would indicate full employment, Yellen declined, though she said the headline level is near that point.