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Tuesday, August 5, 2008

Great Day on Wall Street

Bob Brinker said that one could almost bet the "family jewels" that the Fed would not raise interest rates today. That would have been a good bet if one could have found anyone to take it. 8~)
Today, the Dow closed up 331.62 to 11,615.77; S&P closed at 1284.88; and oil closed at 119.17.

Two very important things happened today. Oil dropped in price and the Fed held steady:


Stocks rally fueled by oil slide, Fed statement

Dow has best day in 4 months as oil slumps, Fed stands pat on rates

By Nick Godt, MarketWatch
Last update: 4:56 p.m. EDT Aug. 5, 2008

NEW YORK (MarketWatch) -- U.S. stocks ended sharply higher Tuesday, fueled by a continued slide in crude oil prices as the Federal Reserve decided to keep interest rates steady and gave no hints it might change course any time soon.
"There were no major surprises," in the Fed decision or its accompanying statement, said Owen Fitzpatrick, head of U.S. equity at Deutsche Bank.
"Given the numbers that we saw last week in terms of [weak economic growth], there's a recognition that risks to the economy have increased, and they maintained their stance that inflation remains a concern," he said............"


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