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European markets build on gains as investors digest Fed minutes CNBCFed Moves Toward Another Big Rate Increase as Inflation Lingers The New York TimesFed Officials Agreed Rates May Need to Keep Rising Bloomberg Markets and FinanceFed sees 'more restrictive' policy as likely if inflation fails to come down, minutes say CNBCSTOCK MARKET NEWS: Fed minutes signal July rate hike size as inflation persists Fox Business
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 The British pound rose early Thursday as the BBC and other U.K. media reported that Prime Minister Boris Johnson is expected to resign imminently. The pound rose 0.4% to $1.1978, in a week that has thus far seen dozens of Conservative cabinet members resign in protest over Johnson's flip-flopping around a sexual harrassment scandal. The BBC reported that Johnson will resign as Conservative leader, but continue as prime minister until autumn. A campaign to replace Johnson will take place this summer, with a new leader ready in time for the October Tory party conference, the BBC said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Nadhim Zahawi, appointed as chancellor only Tuesday, said in a letter posted to social media that U.K. Prime Minister Boris Johnson should resign. Zahawi said he accepted the role out of loyalty to the country, and that the major offices of state function through a national crisis. He said he made clear on Wednesday, with colleagues, to Johnson that he should leave. "I am heartbroken that he hasn't listened and that he is now undermining the incredible achievements of this Government at this late hour," Zahawi wrote. "Prime Minister, you know in your heart what the right thing to do is, and go now."
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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 Growth stocks are suddenly outperforming value equities as the bond market begins to signal recession fears. It may mean the Federal Reserve has passed peak hawkishness in raising rates to combat high inflation.
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The major indexes spent most of the day bouncing around as investors awaited the mid-afternoon release of the minutes from the Federal Reserve's June policy-setting meeting, where the central bank issued its first 75 basis-point rate hike in nearly three decades. A basis point is one-one hundredth of a percentage point.
The meeting minutes revealed that another hefty rate hike is likely coming when the Fed meets later this month (July 26-27) as the central bank tries to tame red-hot inflation. Specifically, the minutes suggested that "an increase of 50 or 75 basis points would likely be appropriate at the next meeting."
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Additionally, the minutes indicated Fed officials believed the current economic outlook "warranted moving to a restrictive stance of policy," while leaving the door open to "an even more restrictive stance" should high levels of inflation persist. Translated: ongoing rate cuts, larger rate cuts, more bond selling or some combination thereof.
"The Fed minutes' primary message is, by now, what the parade of Fed speakers since the last meeting have emphasized, that 'more restrictive' policy measures will be needed if inflationary pressures do not ease markedly," says Jamie Cox, managing partner for Virginia-based Harris Financial Group. "Markets have received the message loud and clear."
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"What got my attention was the reference to a potential pause at year-end," says Cliff Hodge, chief investment officer for North Carolina-based Cornerstone Wealth. "This is new,
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When you buy shares of stock, you become a partner in a business. Perhaps I'm stating the obvious, but I doubt all investors see their purchases that way. Many see stocks as horses to bet on or as scorecards that tell them how their 401(k) is doing. Because stocks represent pieces of companies, the first consideration is whether that company is worthy of your partnership.
As I told readers two years ago, I keep a wish list of about a dozen companies. I want to become a partner, but I am waiting for the market to offer me a better price - an event that may never come. Some of these shares have been on my list for decades, and in my reluctance, I have missed spectacular successes.
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Johnson & Johnson (JNJ) is a good example. I have lusted after the stock for 20 years, as it has gone from $54 to $176, with a dividend that has increased from 84 cents to $4.52 a share. If you bought J&J in mid-2002, your original investment would be yielding 8.4% annually in dividends alone. (Stocks I like are in bold. Prices and other data are as of June 3.)
When the market drops sharply, I don't despair. Instead, I pull out my list to see if any of the stocks I like have moved into buying range. In other words, could I become an owner? This is a subjective decision. I'm not looking for a particular price-earnings ratio but a general sense that now is the time to pounce on the value stocks.
Such an occasion presented itself in early 2020, when the market tanked on the realization that the COVID pandemic was serious. In the five-week period ending March 15, the
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