Weekly Roundup: Top 10: Bernanke calms as housing future's debated

	Weekly Roundup JULY 12, 2013 Top 10: Bernanke soothes as housing is debated MarketWatch's top 10 stories, July 7-12 Mr. Market has almost figured out the Fed. How else to explain the strong gains in stocks this week? Though the minutes of the last Federal Reserve meeting didn't make matters any clearer, the market responded positively to comments from Fed Chairman Ben Bernanke on Wednesday night. The possibly-on-his-way-out central banker tried to explain that even if the Fed slows down purchases of bonds, it will keep interest rates low — they're barely above zero — for a long time yet. The Dow Jones Industrial Average (DJIA) rose more than 2% for the week. The S&P 500 (SPX) added 3%, and the Nasdaq Composite (COMP) rose 3.5%. ReutersFederal Reserve Chairman Ben Bernanke speaking this week.But while the stock market has come to terms with Fed policy, at least for now, the bond market is a changed place. Even though yields on the 10-year bond (10_YEAR) declined aggressively this week, they're still about a full percentage point higher than in May. And that means mortgage rates have spiked, which in turn has decimated refi applications. Whether the housing market can withstand the higher rates was the subject of plenty of commentary, with one column questioning whether housing has really turned around at all. And executives from two of the country's biggest banks, J.P. Morgan Chase and Wells Fargo, talked to analysts about how the rise in mortgage rates will impact their business. Stay tuned to MarketWatch over the weekend for all the news and analysis you need to organize your finances and retirement. And watch out for flying sharks . — Steve Goldstein Bernanke's dovish tone Federal Reserve Chairman Ben Bernanke said the central bank will keep interest rates at near-zero levels even after unemployment falls to 6.5%. The Fed has set an unemployment rate threshold of 6.5% for the first rate hike from the levels that have been in place since December 2008. He may face a Sisyphean task in perpetually distinguishing between the tapering of the central bank's bond-buying program and its commitment to low interest rates. The debate over housing The housing recovery is a myth, David Weidner argues . Yes, prices have climbed, and so have sales, but it's only benefited those with access to credit and not previously tied down to expensive homes. Rex Nutting counters that higher home prices are boosting middle-class wealth . "The increase in home prices over the past year is the best economic news the middle class has had in years," he says. Brett Arends likens the current gains in housing to a drug-induced high . Earnings rise for J.P. Morgan Chase and Wells Fargo It was a pretty good start for bank earnings season as both J.P. Morgan Chase (JPM) and Wells Fargo (WFC) topped analyst forecasts. The question for both remains how they will adjust to higher interest rates. J.P. Morgan Chairman and CEO Jamie Dimon says mortgage originations will suffer markedly if rates remain at current levels, while Wells Fargo chief John Stumpf says that, even as refis slump, the servicing business will do better. Neither executive seemed thrilled with Washington's moves to regulate their business, the latest coming in the form of legislation to bring back Glass-Steagall . Hedge funds can now advertise The Securities and Exchange Commission gave its approval for hedge funds and private-equity funds to advertise, reversing an 80-year-old ban. Chuck Jaffe has this advice for when the hedge funds call in Don Draper: run . Meanwhile, the hedge-fund industry was subjected to big-time lampooning on Twitter after the SEC decision. Bad week in aviation Last Saturday, an Asiana Airlines (KR:020560) plane crashed in San Francisco, killing two and injuring more than 180. An Alaskan plane crash killed all 10 people on it, including five from a single family. The U.S. has the most fatal plane crashes , but that's because the U.S. flies more than any other country.  See video Friday, a fire took place on a parked Ethiopian Airlines Boeing (BA) 787 at London's Heathrow Airport, rocking shares of the Dreamliner maker as well as related suppliers. And it wasn't just planes. The week brought two deadly train incidents, too, in Canada and France . Overseas retiring spots Interested in retiring overseas? Check out this list of the most affordable cities to retire abroad. Rising gas prices The news isn't good at the pump. Nationally, prices are at their highest levels since mid-February . Unrest in Egypt, troubles at refineries and, of course, "summer driving season" all are combining to lift prices. Nook's troubles Barnes & Noble's (BKS) CEO quit this week as the Nook tablet has struggled to compete against Amazon's (AMZN) Kindle and Apple's (AAPL) iPad. What happens to your e-books if the Nook goes bust? Quentin Fottrell endeavors to answer that question . Parcour: a 250-mph Italian land missile Let's be honest — this review is not high on practical value. But for a slide show on a really snazzy-looking car, click here . 10 things farm stands won't tell you Tempted by roadside produce? Read our latest installment of "10 Things" before doing so. Get the latest news on our mobile site: http://www.marketwatch.com/m MarketWatch has sent you this newsletter because you signed up to receive it. To ensure you receive this newsletter in the future, please add marketwatchmail.com to your list of approved senders. Sent to: kumaresan.selva.blogger@gmail.com Unsubscribe | Subscribe Copyright 2013 MarketWatch, Inc. All rights reserved. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc. By using this site, you agree to the Terms of Service and Privacy Policy (updated 6/26/07). 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