TODAY | September 19, 2013
>> we want to start with our top story. all eyes are on wall street after some mixed messages on the economy. on wednesday the dow jones soared 147 points closing at a record high. traders celebrated the jump which came thanks, in part, to a surprise decision from the federal reserve chairmanb ben bernanke . let's go to jackie deangelis on what it means for the markets and for you. jackie , this surprised people because for months, the fed has been saying we may back down on some of the stimulus. now they are saying no. in fact, ben bernanke has said we have been overoptimistic. what's the impact?
>> well, it's a big impact on wall street . the market surging on this news, the fact that bad news is good news for the market. when we look at what chairman bernanke has been saying. he's indicated there may be a pull back before the end of the year. of course the chairman never promised that. he mentioned that yesterday. meantime, what he's cited in terms of his reasoning for the decision was if tightening of financial conditions and also concern over how pulling back on this stimulus could potentially impact the economy and also employment. he was making a very big point there. the take away from wall street is that the fed was concerned about pulling back the slightest bit here, which really means that we will have to focus on data as we go forward. we will be looking for the quality of that data to show that the economy is really improving. so, for example, for the next unemployment report, wall street will want to see the rate tick down because more jobs are being added not necessarily because less people are looking.
>> all right, so, jackie , let's just the break this down for the average person out there. is this good news in the short term that signals, perhaps bad news in the long run?
>> well, for the short term it is going to be confused. the markets reflect on the dow. your 401ks, your mutual funds will probably rise along with the markets. also, we will probably see interest rates continue to stay low, which is good for businesses in terms of low cost of borrowing, also good for people out there looking to buy homes with their mortgage rates . but in terms of the long term, you are going to be watching the fed very closely in that market data . there could be more volatility to come because when the taper does happen, you could see a pull back in the market.
>> all right, jackie deangelis of cnbc. thank you, appreciate it.