Tuesday, September 18, 2007
Waiting for the Fed
The Dow ended the session Monday with a loss of 39.10 points to close at 13,403.42. The SPX gave up 7.60 points to 1,476.65. WHR ended up $0.08 at $91.28. We are in the green and looking ok.
There wasn’t a lot of news Monday, leaving the major market indices in the red. The fact is that expectations are for the Fed to cut rates tomorrow at their September meeting. However, there are questions about how much of a cut will be made. Odds are showing a better than 50 percent chance of a 50-basis point cut. However, many analysts predict just 25-basis points will be cut as the Fed takes baby steps. What the committee has to say about the economy will also impact trading.
Oil prices continued to rise Monday, hitting another intraday high and ultimately closing at $80.57 a barrel. Crude gained $1.47 a barrel on the session with traders anticipating strong demand down the road as the Fed cuts interest rates to spur growth.
News that customers have pulled $4 billion in funds from U.K. mortgage lender Northern Rock pushed the stock down more than 40 percent. There have been concerns that the lender will go under following news that the company was getting funding from the Bank of England but a sale seems far more likely now. Other Bank shares in the UK fell on the news.
Big day today. Lets see what happens.
Until next time.
There wasn’t a lot of news Monday, leaving the major market indices in the red. The fact is that expectations are for the Fed to cut rates tomorrow at their September meeting. However, there are questions about how much of a cut will be made. Odds are showing a better than 50 percent chance of a 50-basis point cut. However, many analysts predict just 25-basis points will be cut as the Fed takes baby steps. What the committee has to say about the economy will also impact trading.
Oil prices continued to rise Monday, hitting another intraday high and ultimately closing at $80.57 a barrel. Crude gained $1.47 a barrel on the session with traders anticipating strong demand down the road as the Fed cuts interest rates to spur growth.
News that customers have pulled $4 billion in funds from U.K. mortgage lender Northern Rock pushed the stock down more than 40 percent. There have been concerns that the lender will go under following news that the company was getting funding from the Bank of England but a sale seems far more likely now. Other Bank shares in the UK fell on the news.
Big day today. Lets see what happens.
Until next time.
# posted by Paul @ 1:22 AM 
