Dow Recovery: Day 2
The DJIA has beat it back into the black in a stunning two day recovery of almost 300 points. The Nasdaq showed its largest gain in two years. Some of it had to do with good news from Caterpillar, some of it had to do with good news from Goldman Sachs and Lehman Bros earlier in the week and then Bear Stearns today (NI up 81%), more of it probably had to do with Bernanke’s doveish comments and improved reports from the Feds.
Still, the economic indicators remain mixed and most agree that at least a quarter-point interest rate hike is in the works. “It’s a resignation rally,” said Bob Hynes, senior market analyst at IFR Markets. “People are resigned to the fact that the Fed is going to go higher.”
I agree and remain concerned about macroeconomic pressures. Aggregate demand is still being driven by war (that and the relentless appetite for consumer credit at any price) and even with slight pull back below $70.00 for oil, fuel costs continue to drive inflation.
This entry was posted on Thursday, June 15th, 2006 at 8:18 pm and is tagged with bob hynes, interest rate hike, goldman sachs, lehman bros, ifr markets, bear stearns, aggregate demand, oil fuel, djia, quarter point, market analyst, fuel costs, nasdaq, economic indicators, feds, caterpillar, consumer credit, resignation, inflation, appetite. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.
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