Markets were up on expectations the Federal reserve will cut the lending interest to a record or near record rate low interest rate. Dow rose 109,
advancers ahead of decliners almost 3-1 &
NAZ was up 33. The indices I follow are marginally up awaiting developments.
Meanwhile recession economic news keeps coming. Housing starts dropped 18%, largest drop in 24 years. The inflation news, reported ahead of the Federal Reserve meeting, was good, although the decline was attributable to lower energy & food prices. Core inflation (excluding food & energy) was even.
Oil is lower ahead of the OPEC meeting tomorrow which will decide production cuts. Guesses are for a cut of 1-3MM barrels a day (the Saudis are pushing for a 2MM reduction). Seemingly with the world in a super recession, a production cut will not have a big impact on prices. China, 4
th largest economy in the world, reported yesterday that their growth rate dropped to "only" a 5% rate, lowest in 10 years, when they first started keeping records.
| CLF09.NYM |
..Crude Oil Jan 09 |
...44.13 |
.. 0.38
......(0.85%) |
|
•Saudi Arabia Says OPEC Will Cut Output 2 Million Barrels to End Oversupply
The
Madoff scandal widens with more reports on major losses for prominent investors. I shudder to think where this scandal will lead, not to mention implications of frightening off marginal investors. Hedge funds are involved, they may suffer if more investors cash out leading to forced stock sales.
•Bank Medici of Austria Invested $2.1 Billion With Arrested Manager Madoff
Meanwhile the Dow keeps muddling along in the midst of gloomy economic news & tax loss selling. This performance is encouraging for the bulls. Let's see how markets take the rate cut by FED today & announced production cut in oil tomorrow.
Dow Jones Industrials --- 3 months
Oh yes, the administration is still working on the auto bailout package!
Also I got a note from Amazon reminding me about gift giving & the holiday season, Amazon widgets are on the right side for your convenience. Happy holidays for all readers!
