After Great Comeback Wall Street Expects Capricious Week

January 28, 2008

(Long Island, N.Y.) Last week started slowly for Wall Street, the Dow Jones Industrial was losing points at the triple digit mark while the NASDAQ index and the Standard and Poor 500 composites saw declines. Then came some positive news from the White House about the “Stimulus Plan“ along with some great quarterly reports coming in from giants like Microsoft and the tables quickly turned propelling the market into a 2 day rally that conclusively netted a positive week for the US economy. Expect much of the same unsettledness in the world markets this week.

Wall Street expects a more positive outlook entering this week but is not necessarily convinced of it. A big part of this optimism hinges deeply on the approval of the “stimulus plan” from the Senate. If the senate gives its nod this week it could be a crucial turning point for Wall Street, one that could make or break the week. Another factor would be the result of the Federal Reserves meeting which will commence on January 29th-30th. If plans go through, the Fed will probably announce an additional cut in interest rates again which could further help our economy.

On the opposite side of the spectrum, these moves could easily create a negative impact that could pave the way for Recession. Experts also conclude that our economy needs sustenance after these strategic ploys are implemented to continue growth. Alan Gayle who is the senior investment strategist and director of asset allocation for Trusco Capital Management says “If their expectations are met, they quickly ask, what’s next?”

Anthony Conroy who is the managing director of BNY ConvergEx Group said of our economy, “If we’re not at a bottom, we’re probably very close,” He also added that, “Volatility won’t be over for a while,” Conroy said. “These credit issues don’t go away overnight.”

The NASDAQ closed down last week with a gain of 0.59 percent. Standard and Poor 500 index finished the week 0.41 percent higher while the Dow Jones Industrial which struggled on the early part of the week gained 0.89% by week’s end.

Posted by News LI Editor · Edited by Brianna - Filed Under Business