Nothing new in US stock
Wednesday, June 24, 2009
US Stocks ended mixed but little changed Tuesday, one day after a sell-off. Traders are looking for the central bank to outline its expectations for the economy and signal when it might raise interest rates. The Fed's two-day meeting ends Wednesday. According to preliminary calculations, the Dow Jones industrial average fell 16.10, or 0.2 percent, to 8,322.91. The Standard & Poor's 500 index rose 2.06, or 0.2 percent, to 895.10, and the Nasdaq composite index fell 1.27, or 0.1 percent, to 1,764.92. The Fed is widely expected to keep its key interest rate near zero, but investors are unsure how optimistic the policymakers will be in their economic assessment, and whether the central bank will consider raising rates later this year to curb inflation.
Meanwhile, the market was also following the week's $104 billion in Treasury auctions. The government sold $40 billion in debt Tuesday amid strong demand. Investors have been on edge during such auctions because any signs that a desire for government debt is waning could hit the market. Treasury demand needs to stay strong for the government to finance its bailout and stimulus programs without significantly raising yields. Bond yields affect borrowing rates for consumers. The recent selloff, however, has brought very little volatility, and that's a positive sign, said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. The biggest loser among the 30 Dow stocks was Boeing Co., which fell $3.03, or 6.5 percent, to $43.87 after again delaying the first test flight of its long-awaited 787 jetliner. The company said it needed to reinforce part of the aircraft to go up.
Posted bySaini at 11:13 AM
Labels: Stocks and Market
