Robert Holmes article on ” The Dow closes Above 14,000 for the First Time” gives a detailed report on the Numbers. On Thursday, the Dow finished above 14,000 for the first time rising to 82.19 points. Nasdaq was also on a high on Thursday, its best in six years time. Quoting Art Hogan (Chief Market Analyst, Jeffereis) “Finishing above 14,000 on the Dow is not necessarily a breakthrough in Technical Terms although it is an important psychoogical one”. Another very important aspect was that about 3.26 billion shares changed hands in the New York Stock Exchange.
During the Federal Open Committee Meeting, the rate was left unchanged at 5.25%. The Fed seems to have decided to keep the rate unchanged (therby squashing any hope of reduced rate!) and the panel are also having a watchful eye on Inflation. The concern voiced during the meet was about the housing sector downturn and that it might persist for a longer period of time.
I feel that the Fed’s stand might be the same on the rate for some time, but the housing sector has become a major concern for all, along with Inflation. If the downturn in the housing sector persists for a longer period it is bound to affect the economy, and the Fed’s better take measures on the same.