FED testimony

FED testimony....

Thursday, January 17, 2008

U.S. investors will focus their attention Thursday on testimony from Federal Reserve Chairman Ben Bernanke and quarterly results from Merrill Lynch. Merrill is expected to take a massive write-down related to mortgage investments when it posts results before the market open. The results could further roil the financial sector, which has been pummeled by the subprime crisis. Citigroup took a massive $18.1 billion write-down in its fourth quarter while JP Morgan Chase reported a $1.3 billion hit. But Wall Street could get a boost as Bernanke heads to Capitol Hill. The central bank chief is due to testify before the House Budget Committee at 10 a.m. ET and is widely expected to express support for plans to goose the weakening economy. As always, investors will also parse his testimony for clues about where interest rates are headed. In global trade, Asian markets rebounded to finish higher, and European stocks rose in early trading.