Daily Investment Interpretations
January 25, 2011
(Wednesday Night): The
markets have soared today on the Fed's pledge to keep interest rates low through
at least late 2014: Dow
rises to 8-month high; Stocks
Soar on Extension of Fed's Zero Interest Rate Policy. The NASDAQ
Composite added 31.67 (1.14%)
to 2,818.31. The Dow gained 83.10
the S&P 500 gained back 1.32 points
to settle at 1,314.63. Oil inched up to 99.83: Oil
falls under $99 a barrel; gold catapulted
to 1710: Gold
rallies as Fed extends low-rate pledge. The VIX rose 0.64
points to 18.27.
Today's key event was the Fed's unexpected interest rate announcement: Fed pushes out low rate pledge to late 2014. Or is that 2016? Text of statement.
Bond yields fall most since October after Fed
Dollar falls to low for the year after Fed
Fed says long-term inflation goal is 2%
Delamaide: Obama's pragmatic stance
Hulbert: Financials as a bullish indicator?
IMF says hasn't asked ECB to take Greek write-down.
Matthew Lynn writes: Forget Greece; Portugal is the worry. This article is a rouser. Matthew Lynn says that Portugal is facing the same problems as Greece (Portugal is paying 14% on its 10-year bonds), except that Portugal didn't squander money during its heydays. European banks are more heavily exposed to Portugeuse debt than they are to Greek debt. A default by Portugal could be a "Lehman moment" for the Eurozone, and to some extent, for the rest of the world.
Soros: Don't force austerity
Germany’s Merkel: Yes, we dare more Europe.
State of the Markets articles include:
FOMC Leaves Rates Unchanged; Announces "Exceptionally Low Rates Through 2014"
FHFA House Price Index Up in November; Ahead of Consensus
Pending Home Sales Fall In December But Trend Remains Positive
Barrier To Entry
IMF Calling For ECB To Take Hit On Its 40 Billion in Greek Debt
UK GDP Moves Closer to Recession Levels, BOE Leaves Rates Unchanged
Greek PM Looking For Debt Swap Agreement By End of Week
Market futures are slightly lower tonight.