Thursday, June 07, 2007
Downward Relief!
Higher Interest Rate fears pushed stocks sharply lower for the second straight session yesterday. The Dow fell 129.79 points to close at 13,465.67. The SPX fell 13.57 points to end on 1,517.38. We are looking good in the green.
The European Central Bank raised rates 25-basis points to 4.00 percent. This was expected, but it created concerns about possible rate hikes by the Fed this year as well. It wasn’t too long ago that traders were anticipating a Fed rate cut this year, but stronger economic data and continued pricing pressures have flipped this view.
Today we get more information on the retail sector when the bulk of companies report their May same store sales data. Next week we will get the May retail sales report. The Fed is keeping an eye on consumer spending, as this is an area that could be hurt if gasoline prices remain elevated.
We will also be looking to place our put play on soon. Watch out for my email.
Until next time.
The European Central Bank raised rates 25-basis points to 4.00 percent. This was expected, but it created concerns about possible rate hikes by the Fed this year as well. It wasn’t too long ago that traders were anticipating a Fed rate cut this year, but stronger economic data and continued pricing pressures have flipped this view.
Today we get more information on the retail sector when the bulk of companies report their May same store sales data. Next week we will get the May retail sales report. The Fed is keeping an eye on consumer spending, as this is an area that could be hurt if gasoline prices remain elevated.
We will also be looking to place our put play on soon. Watch out for my email.
Until next time.
# posted by Paul @ 4:45 AM 
