Wednesday, January 30, 2008
We Await the Fed!!
Stocks continued their winning ways to see gains Tuesday ahead of the Fed decision on interest rates due out today at 2.15 EST. The Dow gained 96.41 points to close at 12,480.30. The SPX tacked on 8.34 points closing at 1,362.30. We have no play on at the minute as we are waiting for the fed to do their thing!!
On Monday there was news of further weakness in the housing sector. This lifted expectations for an aggressive rate cut by the Fed this week. However yesterday, a strong durable goods orders report eased concerns about a recession, but according to the fed find futures rate, traders still expect a 0.5% rate cut by the Fed today.
The durable goods orders rose 5.2 percent in December, well above estimates for growth of 1.6 percent. Strength was led by aircraft orders, but new orders advanced 2.6 percent even when transportation is excluded. This news does ease some of the worries about a recession.
The Fed began its two-day meeting yesterday with the committee’s statement due out Wednesday at 2:15 PM EST. With traders expecting a 50-basis point cut, anything short of this could result in selling for stocks.
Lets see.
Until next time.
On Monday there was news of further weakness in the housing sector. This lifted expectations for an aggressive rate cut by the Fed this week. However yesterday, a strong durable goods orders report eased concerns about a recession, but according to the fed find futures rate, traders still expect a 0.5% rate cut by the Fed today.
The durable goods orders rose 5.2 percent in December, well above estimates for growth of 1.6 percent. Strength was led by aircraft orders, but new orders advanced 2.6 percent even when transportation is excluded. This news does ease some of the worries about a recession.
The Fed began its two-day meeting yesterday with the committee’s statement due out Wednesday at 2:15 PM EST. With traders expecting a 50-basis point cut, anything short of this could result in selling for stocks.
Lets see.
Until next time.
# posted by Paul @ 4:12 AM 
