Tuesday, September 21, 2010

Dow Jones Industrial Average Outlook, 21/09/2010

Dow Jones up 146 points to a 4-month high.
The Dow rallied 146 points or 1.4% to finish at 10754, the highest since May 13, as sentiment was boosted by an official end date for the recent economic recession, IBM’s US$1.7bn acquisition deal and good corporate earnings by homebuilder, Lennar. The National Bureau of Economic Research said the recession that began in Dec 07 officially ended in June 2009, marking an 18-month downturn that was the longest recession since World War II. Meanwhile, a report from the National Association of Home Builders -- the first of a number of readings on the housing market due out this week which showed builder confidence for newly built single family homes remained steady at 13 in September, after falling for three consecutive months. Meanwhile, all eyes will focus on the FOMC’s meeting tonight (widely expected to hold rates steady), as investors will parse the Fed's policy statement for clues on the economic outlook.

For Wall Street, all eyes will focus on the FOMC meeting today as the turning point that stocks have been searching for to break out of the range with conviction. If the Federal Reserve's view of the economy brightens by just a glimmer this week, it could push the Dow to retest the 11k psychological level prior to the US mid- term election in November.

Source: MarketWatch

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...