Investors waited with bated breath this morning, waiting to hear the latest Fed news from new committee Chairman Ben Bernanke. The new Chairman told Congress that more rate hikes "may" be needed as the threat of higher inflation persists. Bernanke continued to state that higher energy prices could still spill over into wider price inflation while the risk remains that "output could overshoot," which would put more upward pressure on prices. In reaction to this news, relieved investors have helped push the Dow Jones Industrial Average to its highest level since June 2001.

In other news, the Empire State Manufacturing index increased to 20.3 in February from January's reading of 20.1. The pace of growth in February matches the average growth from the past several months. Economists were expecting a slip to 18.1 from the index. The American Petroleum Institute (API) announced an increase of 8.1 million barrels in the past week, bringing its total crude stockpile to 329 million barrels. The API also announced that distillates increased 1.1 million barrels and gasoline inventories increased 176,000 barrels. The Department of Energy reported an increase of 2.2 million barrels in crude.

Yesterday, Abercrombie & Fitch (NYSE:ANF) posted "blow-out" fourth-quarter earnings, but the news wasn't so good today. The trendy teen retailer dropped more than three percent following a conference call late yesterday where ANF Chief Executive Mike Jeffries set a restrained tone, noting "After such an amazing year, we're faced with the challenge of improving what has become a hugely successful business." This morning analysts stated the belief that ANF is trying to lower investor expectations that it can continue to post 20-percent and 30-percent same-store sales results as it has in the past year.

This is cache, read story here