Tuesday, May 24, 2005
Is the Recent Rally for Real.. stock market
CNBC Market Dispatches
5/23/2005 6:07:59 PM ET
Tomorrow may be signal of rally's strength
The Dow closes up more than 50 points as investors sense Fed's policy on rates will be little-changed. Apple may use Intel chips. News Google may join the S&P 500 boosts shares 5%.
The question, after Monday's fairly nice rally, is how long will it last?
Right after 2 p.m. tomorrow should give investors a pretty good idea. The Federal Reserve will release the minutes of its May 3 Federal Open Market Committee meeting. The committee raised short-term rates a quarter-percentage point. The minutes will give investors a sense of whether the Fed will continue to raise rates at a quarter of a percentage point at a time, slow the pace down or accelerate.
The day actually begins with a market-moving event: The monthly report on existing home sales from the National Association of Realtors. Briefing.com says the consensus is that the report will show sales running at an annual rate of 6.9 million homes, unchanged from a month ago and 5% higher than a year ago.
Monday, the stock market was betting the Fed minutes will suggest no change in the policy that has been in place since last June. Or the Fed may even slow down how fast rates will rise. In January, starting with the December meeting minutes, the Fed has been releasing the minutes three weeks after each FOMC meeting. The minutes have tended to move markets often fairly violently. After the March minutes were released on April 12, the Dow dropped more than 400 points in the next four days.
5/23/2005 6:07:59 PM ET
Tomorrow may be signal of rally's strength
The Dow closes up more than 50 points as investors sense Fed's policy on rates will be little-changed. Apple may use Intel chips. News Google may join the S&P 500 boosts shares 5%.
The question, after Monday's fairly nice rally, is how long will it last?
Right after 2 p.m. tomorrow should give investors a pretty good idea. The Federal Reserve will release the minutes of its May 3 Federal Open Market Committee meeting. The committee raised short-term rates a quarter-percentage point. The minutes will give investors a sense of whether the Fed will continue to raise rates at a quarter of a percentage point at a time, slow the pace down or accelerate.
The day actually begins with a market-moving event: The monthly report on existing home sales from the National Association of Realtors. Briefing.com says the consensus is that the report will show sales running at an annual rate of 6.9 million homes, unchanged from a month ago and 5% higher than a year ago.
Monday, the stock market was betting the Fed minutes will suggest no change in the policy that has been in place since last June. Or the Fed may even slow down how fast rates will rise. In January, starting with the December meeting minutes, the Fed has been releasing the minutes three weeks after each FOMC meeting. The minutes have tended to move markets often fairly violently. After the March minutes were released on April 12, the Dow dropped more than 400 points in the next four days.
