Posted on 08/24/2007 11:17:46 PM PDT by JohnHuang2
NEW YORK (AP) — Wall Street ended its calmest week in a month with a big advance yesterday, rising on solid economic readings that countered the bleak sentiment that has blanketed the financial markets. The Dow Jones Industrial Average rose more than 140 points in a lightly traded session.
Stocks started out flat but jumped following a stronger-than-expected reading on new-home sales for July. That report came after a reading showing orders to factories for big-ticket goods rose sharply last month.
The stock market's gains yesterday after several stable or positive sessions suggested that Federal Reserve policy-makers and stock market investors have perhaps struck a truce — maybe only a tenuous one — with the Fed acknowledging it stands ready to try to fend off a calamitous seizing up of the credit markets and investors willing to focus on readings on the health of the economy before making decisions.
"I think we've stabilized a bit since the Fed has lowered the discount rate," said Nicholas Raich, director of research at National City Private Client Group in Cleveland, referring to the Fed's decision a week ago to cut the interest it charges to lend directly to banks. "That has calmed the market and eased some fears because we have a Fed that is willing to step in and help out."
(Excerpt) Read more at washingtontimes.com ...
Well, I guess that is it then...
The liquidity crisis is over. The Financials are healthy. There is no problem with commercial paper. Housing will be booming shortly and all the folks with adjustable home loans and no home equity will be able to refinance with a low-cost loan. Derivatives are not an issue. The Fed will slash rates and the dollar will do just dandy. And none of this will impact the economy, as I’m sure this Christmas will bring record profits to retailers.
Well I’m certainly glad that is all over and times are just peachy again. I think I’ll buy a few thousand shares of Countrywide.
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