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U.S. stocks fall after Fed comments
Yahoo (Reuters) ^
| Wednesday January 28, 2:27 pm ET
| Reuters staff
Posted on 01/28/2004 11:41:34 AM PST by The_Victor
(Updates with Fed comments)
NEW YORK, Jan 28 (Reuters) - Stocks fell on Wednesday after the Federal Reserve, as widely anticipated, said it will leave interest rates unchanged at 45-year lows, but made comments that indicated it might be closer to a rate hike.
The U.S. Federal Reserve opted on Wednesday to hold interest rates at 1958 lows to keep the economic recovery rolling. But it changed its wording on the future of rates slightly to say it can "be patient" before lifting borrowing costs. Low rates are good news for stock prices and the economy, since they help fuel corporate earnings growth by keeping a lid on borrowing costs.
After the Fed's comments, the Dow Jones industrial average (^DJI - News) fell 66 points, or 0.62 percent, to 10,544. The Standard & Poor's 500 Index (CBOE:^SPX - News) was down 7 points, or 0.62 percent, at 1,137. The technology-laced Nasdaq Composite Index (NasdaqSC:^IXIC - News) dropped 17 points, or 0.80 percent, to 2,099.
TOPICS: Breaking News; Business/Economy; Government; News/Current Events
KEYWORDS: fed; interestrates; stocks
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Yuck
To: The_Victor
To: The_Victor
I'm looking forward for the first rate hike. Housing market should tumble and good deals will be just right around the corner. The lower prices should outweigh the increase in interest rates. Anyway, this is my theory.
***The author of this message is not responsible for......yada-yada-yada........
3
posted on
01/28/2004 11:45:11 AM PST
by
mlbford2
To: mlbford2
I'm looking forward for the first rate hike.I think you should short treasuries so that you'll have more money for the lower house prices. (;>)
4
posted on
01/28/2004 11:49:36 AM PST
by
Stentor
To: The_Victor
Shutup FED. You guys talk too much.
5
posted on
01/28/2004 11:50:43 AM PST
by
demlosers
(<a href="http://www.michaelmoore.com">Miserable Failure</a>)
To: The_Victor
The stock market needs to take a breath for a few weeks. Might be some buying opportunities a little later.
6
posted on
01/28/2004 11:50:47 AM PST
by
RightWhale
(Repeal the Law of the Excluded Middle)
To: RightWhale
This will have a two fold effect. Cool down the market a bit but also will prompt companies to take advantage of the cheaper money now to upgrade and expand.
7
posted on
01/28/2004 11:57:36 AM PST
by
OldFriend
(Always understand, even if you remain among the few)
To: demlosers
"Shutup FED. You guys talk too much."
Actually, it's what the Fed didn't say that has the stock market in a funk. In its statements after meetings since this past summer, the Fed has said that they would leave interest rates low for a "considerable period" of time. The "considerable period" phrase was unexpectedly dropped in today's statement. This doesn't mean interest rates are on their way up any time soon, but it gets rid of what would be a future impediment.
To: The_Victor
Let me guess. Greenspan puts out a manure storm of contradictory statements, as usual, and the nation is enthralled. The reality is he won't hike rates until John Snow or GWB says he's concerned about the weak dollar.
9
posted on
01/28/2004 11:58:54 AM PST
by
Moonman62
To: Moonman62
Excuse for selling, need a 10%-15% correction anyways...
10
posted on
01/28/2004 12:00:27 PM PST
by
dakine
To: RightWhale
a few weeks. Might be some buying opportunities a little laterTypically the indexes pull back for about 3 weeks after having gone up as they have. We all know the prices fluctuate regardless, so we can make money whether prices go up or down.
Just the same, I like it better when prices go up.
To: The_Victor
10-YR YIELDS EXPLODE, AS GOOD AS A 25-BP RISE IN FED RATES.
Greenspan is a real douchebag. there was absolutely NO reason for the FOMC to alter their "considerable period" wording.
To: Moonman62
The market places way too much credence in the words of one man.
To: mlbford2
So if i would want to sell my house as well look for a house, am I screwed? (I know next to nothing about the market)
14
posted on
01/28/2004 12:04:25 PM PST
by
smith288
("YEEEEEEAAAAAAAAAAWWWWWWWWWWWW" - Howard Dean)
To: Moonman62
The reality is he won't hike rates until (John Snow or) GWB (says he's concerned about the weak dollar) is safely re-elected.
I would have crossed out what I put in parenthesis, but I'm HTML challenged...
To: mlbford2
I'm looking forward for the first rate hike. Housing market should tumble and good deals will be just right around the corner. The lower prices should outweigh the increase in interest rates. Anyway, this is my theory. This IS the first rate hike, as mortgage rates will be 0.25% higher this week than last because of the stupid Fed wording.
Howver keep in mind that the housing market tends to INCREASE when rates start to rise, as brokers push fence-sitters to "grab it while rates are still low". Wait for that final push, and then look for a drop.
To: smith288
if i would want to sell my house as well look for a house, am I screwed? There are degrees of upside-downness in home ownership. If the market is at its peak now and headed down, changing homes wouldn't bring an advantage unless moving to a cheaper house. Sell the 6000 foot mansion, learn to love a shotgun shack. Put the difference in highly liquid funds.
17
posted on
01/28/2004 12:09:26 PM PST
by
RightWhale
(Repeal the Law of the Excluded Middle)
To: dakine
Excuse for selling, need a 10%-15% correction anyways...Maybe, but for the support levels for the past 6 months seem to be only about 5-7 percent down.
To: The_Victor
So that's why it droped like a ROCK!
To: The_Victor
I cannot think of a worse possible time to raise rates than now.
Before Greenie was all legacy obsessed with inflation. Now, we have zero inflation essentially and are just getting some growth numbers and he has to leave little telltale signs about rate hikes...stupid.
My ceiling on a commercial mortgage I am currently negotiating just went up probably a point.
Peckerhead!
Where is Paul Volker anyhow?
20
posted on
01/28/2004 12:20:46 PM PST
by
wardaddy
("either the arabs are at your throat, or at your feet")
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