Further rate cuts!

Posted by | September 26, 2007 | Current Affairs | No Comments

There was a surge of positive waves in the market when expectation about further rate cuts by the Fed’s grew among people. The crude oil price went below $80 per barrel, which helped to boost the shares of Boeing and United Technologies Corp. But everything was not positive on Tuesday morning when Housing chain Lowe’s Co’s gave a profit warning, Target Corp reported shorter earnings than what was forecasted for September.

The Housing sales did come down and showed people of economy that the housing effect does have a great impact. But also since a rate cut was expected in the near future, i.e during the october policy meet, it increases the positive attitude in the economy. The DJI gained around 0.14 percent, the S&P dropped 0.03 percent. NASDAQ did show a good improvement, due to AAPL. Technology does not seem to have been affected due to Housings downward surge, and this definetely improves the expectation of the economy.

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