Tuesday, May 08, 2007
Waiting For the Fed (Again)
Not much happened in the markets today but the Dow and SPX all saw moves higher.
The Dow closed the session with a gain of 48.35 points to 13,312.97. The SPX added 3.86 points to finish on 1,509.48.
Monday’s session was light on action with traders looking ahead to Wednesday’s Fed meeting and statement. Though a rate change is highly unlikely, the bulls would like to see the committee less hawkish on inflation so that a rate cut can take place later in the year to help speed up economic growth.
I'm beginning to ask the question now as to whether stocks just keep on going up? I mean of course not but thats what thesy seem to be doing. The Dow continues to set new highs, but there does seem to be growing concern that stocks are getting overbought and a correction is necessary (although you have heard one that before). The fact is that earnings have been better than expected and merger news has benefited the bulls. However, the economy is slowing and this means earnings will slow as well and when earnings decline, so does the stock market.
Until next time.
The Dow closed the session with a gain of 48.35 points to 13,312.97. The SPX added 3.86 points to finish on 1,509.48.
Monday’s session was light on action with traders looking ahead to Wednesday’s Fed meeting and statement. Though a rate change is highly unlikely, the bulls would like to see the committee less hawkish on inflation so that a rate cut can take place later in the year to help speed up economic growth.
I'm beginning to ask the question now as to whether stocks just keep on going up? I mean of course not but thats what thesy seem to be doing. The Dow continues to set new highs, but there does seem to be growing concern that stocks are getting overbought and a correction is necessary (although you have heard one that before). The fact is that earnings have been better than expected and merger news has benefited the bulls. However, the economy is slowing and this means earnings will slow as well and when earnings decline, so does the stock market.
Until next time.
# posted by Paul @ 5:02 AM 
