Yah man... the Dow last night was like a roller-coaster. I was reading different versions of the analyst reports in CNN money last night... they change tune everytime the Dow swing from one way to another way!
The close of Dow (down -0.02%) & Nasdaq (-0.35%) not so bad after all .....
Think Monday is our turn for our own mini 'Fed Rally' in STI. Heehee!!
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What a Week: Fed Rally Fades By Liz Rappaport Markets Columnist 8/4/2006 5:25 PM EDT
Investors spent the week consumed with anticipation about whether or not the Federal Reserve will increase the fed funds rate. Their sigh of relief Friday, when the Labor Department reported a weaker-than-expected payrolls report, quickly turned into a sigh of despair.
In a classic "buy the rumor, sell the news" phenomenon, the pre-jobs, pre-Fed rally faded as investors realized that a Fed pause does not guarantee a soft landing in the economy, nor does it necessarily mean an end to more rate hikes. The one thing a Fed pause does mean is that the economy is slowing, and that puts pressure on earnings growth.
"The 'Fed is done' fire behind buying stocks has run its course," says Peter Boockvar, chief market strategist at Miller Tabak. "Now it's about, 'look what we're left with.'"
On Friday, investors were left with a sinking feeling after early euphoria quickly evaporated. After rising more than 100 points earlier in the day, the Dow Jones Industrial Average fell 0.02% to 11,240.35. The S&P 500 dropped 0.1% to 1279.43, and the Nasdaq Composite slipped 0.35% to 2085.05. For the week, the Dow finished up 0.2%, the S&P rose 1 point to 1279.43, while the Nasdaq fell 0.4%.
In a classic "buy the rumor, sell the news" phenomenon, the pre-jobs, pre-Fed rally faded as investors realized that a Fed pause does not guarantee a soft landing in the economy, nor does it necessarily mean an end to more rate hikes. The one thing a Fed pause does mean is that the economy is slowing, and that puts pressure on earnings growth.
"The 'Fed is done' fire behind buying stocks has run its course," says Peter Boockvar, chief market strategist at Miller Tabak. "Now it's about, 'look what we're left with.'"
On Friday, investors were left with a sinking feeling after early euphoria quickly evaporated. After rising more than 100 points earlier in the day, the Dow Jones Industrial Average fell 0.02% to 11,240.35. The S&P 500 dropped 0.1% to 1279.43, and the Nasdaq Composite slipped 0.35% to 2085.05. For the week, the Dow finished up 0.2%, the S&P rose 1 point to 1279.43, while the Nasdaq fell 0.4%.
Labor-market data stir optimism for pause in rate hikes
NEW YORK (MarketWatch) -- U.S. stocks turned lower Friday afternoon, as a rally, inspired by hopes for an end to the Federal Reserve's current rate hikes series, faded as traders readied for the weekend.
Investors have been puzzled in recent sessions as to whether the Fed will lift rates again at its Aug. 8 monetary-policy meeting. Earlier soft non-farm payrolls data were seen as providing the strongest possible incentive for the central bank to pause, sparking a rally.
"The sell-off that we're seeing this afternoon is just people lightening their positions ahead of the weekend," said Tim Heekin, head of stock trading at Thomson Weisel Partners.
NEW YORK, Aug 4 (Reuters) - U.S. stocks rose on Friday after a government report showing weaker-than-expected July job growth fueled hopes the Federal Reserve may decide against raising interest rates at its policy-setting meeting next Tuesday.
Wary investors sent stocks lower Thursday after a pair of European central banks raised interest rates, increasing expectations on Wall Street that the Federal Reserve would follow suit next week.
The European Central Bank's quarter-percentage-point rate hike was anticipated, leaving rates at 3%, but a similar hike by the Bank of England to 4.75% due to rising prices and stronger economic growth there took market watchers by surprise.
Investors felt that the moves overseas would make it easier for the Fed to raise the U.S. benchmark rate to 5.5% at the next Fed Open Market Committee meeting next Tuesday. With rates rising in Europe, a rate hike here would keep U.S. investments competitive.
The stock market's move lower came despite a slight rise in weekly first-time unemployment claims. Analysts say a softening labor market could allow the Fed stop raising rates. First-time claims rose to 315,000, up from 301,000 the previous week.
U.S.
markets in decline on interest rate, economic concerns. The Nasdaq
composite lost 0.8 percent, the Dow industrials slid 0.5 percent and
the S&P 500 was 0.3 percent lower
Bullish results from P&G, Time Warner, Cigna pace gains after two-session sell-off; oil climbs.
By Alexandra Twin, CNNMoney.com senior writer
August 2 2006: 6:08 PM EDT
NEW
YORK (CNNMoney.com) -- Stocks rallied Wednesday, bouncing back after
two days of selling, as investors welcomed bullish earnings from
Procter & Gamble and other blue chips.
The Dow Jones industrial average (up 74.20 to 11,199.93, Charts) gained 0.6 percent according to early tallies, and the broader Standard & Poor's 500 (up 7.63 to 1,278.55, Charts) index gained around 0.5 percent. The tech-heavy Nasdaq composite (up 16.82 to 2,078.81, Charts) jumped 0.8 percent.
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