Monday, October 29, 2007

Another Winner for Wall Street

Stocks picked up where they left off last week, with each of the major indices posting positive numbers on Monday.

Gains were largely tied to expectations of another rate cut by the Federal Reserve, which begins two days of meetings of the FOMC on Tuesday. Investors are largely anticipating that the Fed will cut another 25 basis points on Wednesday.

Dow 13,870.26 +63.56; NASDAQ 2,817.44 +13.25; S&P 500 1,540.98 +5.70; NYSE Composite 10,256.22 +67.09

Gains were fairly broad-based, with advancing issues holding a 5-4 edge over decliners. New highs slaughtered new lows, 588-213, suggesting that stocks will attempt to retest recent highs during the week.

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Investors continue to ignore the constantly-rising price of crude oil, which popped another $1.67 to yet another record close at $93.53. Gold also added $5.10 to close at $792.80. Silver gained 15 cents to $14.43.

As investors trip over each other, bidding stocks to stratospheric levels, any number of economic reports this week could derail the uptrend. The government offers preliminary 3rd quarter GDP figures on Wednesday morning, prior to the market open. On Friday, November 2nd, October non-farm payroll numbers are released at 8:30 am. The forecasts are for a GDP reading of 3.1% growth and 80,000 jobs added in the month of October.

NYSE Volume 3,120,054,500
NASDAQ Volume 2,092,662,625

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