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Nasdaq is strong today up at a steady 1.3%, but Dow weakens to stay up at 0.3%. Pls stay GREEN till closing ....

 

 

 

Dow up 58 points while Nasdaq up 28 points now ... :)))

 

 

NEW YORK (MarketWatch) -- U.S. stocks closed lower Tuesday, after the Federal Reserve, as expected, took a break from its steady stream of quarter-point interest-rate increases but left open the possibility of another rate increase as early as next month.

Analysts said investors also were unsettled by the fact that the decision was not unanimous, with one Federal Open Market Committee member voting for another hike.

The Dow Jones Industrial Average ended down 45.79 points at 11,173.59. The S&P 500 and the Nasdaq Composite  finished down 4.29 points at 1,271.48 and down 11.65 points at 2,060.85.

Volume was light, with 1.61 billion shares traded on the New York Stock Exchange, where declining stocks outnumbered rising shares by 19 to 13. There were more than 1.90 billion in the Nasdaq market, with more than two losers for every winner.

Stocks rallied briefly after the decision, which leaves the Fed funds rate at 5.25%, but the gains soon evaporated. The central bank has put in place 17 consecutive rate increases starting in June, 2004.

In the statement, as expected, the FOMC kept all its options on the table. It repeated that any further tightening would depend on the economic data.

The Fed said that "inflation risks remain," usually a signal that it's leaning to hike rates again. However, it also said that inflation pressures seem likely to moderate "reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand." See full story.

The lone dissenter favoring another increase was Richmond Fed president Jeffrey Lacker.

"While the market initially reacted positively to the pause, I believe the markets will begin to focus on why the Fed paused," said Barry Hyman, equity market strategist at EKN Financial Services.

Hyman said it appeared that the Fed paused, "not because the FOMC has reached their neutral point on rates, but because they are concerned about overshooting and forcing the economy into a recession.

"If the market interprets this pause as I have stated it will likely lead to additional selling pressures because market participants will be concerned with the overall slowdown in the US economy," he said.

Max Bublitz, chief strategist at Seneca Capital, said investors likely were put off by Lacker's dissension.

Hugh Johnson, Chairman of Johnson Illington Advisors, said the statement was much like the one issued on June 29.

"We are left in the same position. The September and October decisions will depend on incoming data."

The odds of a September interest rate hike fell sharply after the decision. Fed fund futures contracts now imply a 36% chance of an increase next month, down from 84% before the decision.

The latest economic report underscored the dilemma facing the Fed, showing higher inflation.

 

Expecting Dow tonite up, after FOMC meeting, another down for DOW, it is as usual a day up and a day down, has been going on sort off like that for week after week.

 

Yup, me going party cos holiday eve today .... till 2am and come home to see Dow & Nasdaq perform! Cheers!!!

 

lets see what happens tonight after the Fed meeting

 

Expecting DOW tonite opening up on a +ve notes a little with Mr Ben effort.

 

FED words speak louder than action on Wall Street, inflation has trended higher on all sectors of the economic and a suggestion of giving a softer growth should take care of the inflation problems is no longer prevalent suggested a rate hike to come with a plausible scenario as a pause that denotes some element of finality interest rate hike giving some room to hike rate again and vice versa.

Mr Ben Bernake is hard at work to give DOW a more certainty for sure.

 

NEW YORK (MarketWatch) -- U.S. stocks closed with moderate losses Monday, pressured by investor wariness a day ahead of the Federal Reserve's monetary-policy decision and by a supply disruption at a BP-run oil field in Alaska that touched off a rally in crude futures.

The Dow Jones Industrial Average closed 20.97 points lower at 11,219.38. The S&P 500 Index and the Nasdaq Composite Index respectively, finished down almost 3.59 points at 1,275.77 and 12.55 points lower at 2,072.50.

Volume was light, with 1.34 billion shares traded on the New York Stock Exchange, where declining stocks outnumbered rising shares by 5 to 3. There were 1.44 billion shares traded on the Nasdaq market, with 19 falling stocks for every 10 shares trading higher.

"We're not in a bull market, and we're not in a bear market," said Al Goldman, A.G. Edwards' chief market strategist. "We're in a turtle market."

"A turtle waddles around in the muck of all kinds of problems."

Investors are still adjusting to new Federal Reserve Chairman Ben Bernanke and are uncertain how to read his signals. But many think the Fed will break Tuesday from the steady stream of quarter-percentage-point increases that have been put in place since June 2004.

The overnight bank lending rate now stands at 5.25%.

Although equities investors want to see a pause in rate hikes Tuesday, few are expecting the market to rally much if the central bank takes a break. Marc Pado, U.S. market strategist at Cantor Fitzgerald, said a rate pause is already priced into stocks.

A.G. Edwards' Goldman added that the market's focus after the Fed meeting is likely to shift to the U.S. economic slowdown, and particularly to the question, "Are we in for a soft landing or a hard landing?"

He also said that recent data show economic cooling, but whether the slowing is significant or minor is open to debate.

 

Actually the more doom and gloom the better, scared the pussy investors out and it is time to buy on bargain. This is typical example of buy when others is selling and sell when other is buying.

 

still think it will go up for DOW. it is very obvious DOW has formed a W formation based on 6mths and 1 year chart but for a 10 years chart, it has formed a double top top formation. Hence for short short term, i am bullish but bearish for short term.

Unless dow create new high by end of the year, else it is down down down.

 

 

 

Additional boost to US market activities next week ... 

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NEW YORK (MarketWatch) -- A $1 billion initial public offering of Infineon Technology AG's chip spinoff as well as boutique investment bank Evercore Partners are due in the coming days, as Wall Street 's IPO market shifts into recovery mode.

The late summer rush of deals also will include a $400 million IPO from vitamin retailer GNC, a $200 million IPO from Aircastle Ltd. and a tiny $30 million IPO from InterMetro Communications. Alien Technology, a $99 million IPO bumped off the calendar a couple of weeks ago, remains on day-to-day status.

The market for new offerings is attempting to shake off a combination of geopolitical jitters, volatile equity markets and a traditional summer slowdown with one of the busiest calendars in recent months.

Qimonda, the memory specialist for Germany's Infineon Technologies, plans to sell 63 million shares at $16 to $18 a share with underwriters Credit Suisse and J.P. Morgan. The IPO is expected to price Wednesday for its stock-market debut Thursday.

 

Dow seems to be in a head and shoulders pattern. It needs to break 11,350-11,400 before it can go higher.

 

A wall st rally that wasn't, it up 100 points then down, pull down by sluggish unemployment and wages rises, a concern on slowing growth and waitin a possible Fed pause on interest rate hike. DOW will be depending on just one man and he none other then Mr Ben Bernanke, hope he will be fining his speech to rally the sceptical and those uncentainty to give more certainty a better lookout for +ve DOW.