The 110-year-old Dow average exceeded its all-time high, in the fourth quarter rally, stock market helped Dow Jones industrial average towards 12000. Inflation remains under control and it looks like earnings for the most part are pretty good. International Business Machines Corp., the biggest computer-services company, rallied as earnings beat analysts' estimates. Whereas, Johnson & Johnson also rose after Prudential Equity Group LLC said the outlook for its drug unit improved. The gains sent the Dow average above the milestone as trading started. Intel Corp., the world's largest chipmaker, cut its 2006 budget for plants and equipment. Declines in chip-equipment shares hurt the NASDAQ Composite Index Adding to that ASML Holding NV, Europe's largest maker of semiconductor gear, forecasted slower orders. The Federal Reserve will be keeping interest rates unchanged at its next meeting on Oct. 24-25. Economistâs forecast that there will be no change in borrowing costs. The central bank left the benchmark overnight lending rate unchanged at 5.25 percent in the past two meetings after 17 straight increases.
i still dont get this soft landing shit everyone is talking about for '07. Intrest at 5.25? I just dont see it happening. But I really don't know too much, so...
With such a low $ it doesn't say anything that the DOW broke the 12.000 points "boundary" (only that we're in an uptrend). With US companies getting 50% (an estimate) of their profits in other currencies, it is not strange that the DOW rises because the $ profits increase with such a low $. In euro's the DOW is almost flat for the last 5 years.
U.S. stock futures slipped into negative territory ahead of Friday's open, erasing earlier gains, after disappointing results and outlook from blue chip industrial equipment maker Caterpillar and rising oil prices in the wake of production cuts offset strong results from Internet bellwether Google. S&P 500 futures eased 1.60 points to 1,372.70 and Nasdaq 100 futures gave up 0.75 of a point to 1,722.00. Dow industrial futures shed 34 points to 12,025. U.S. stocks ended higher Thursday, with the Dow Jones Industrial Average closing above 12,000 for the first time after a raft of upbeat earnings reports led by Apple Computer Inc., eBay Inc and the Coca-Cola Co. eased concerns about a slowing economy. The Dow industrials rose 19 points, the Nasdaq Composite ended 3.8 points higher and the S&P 500 rose 0.9 of appoint. Stocks futures turn lower
I also find it useful to look at indices and commodities priced in other currencies. Particularly GLD/CHF.