This website and all package domain you-internet for sale! Contact e-mail: office@norbnet.co.uk
Stocks post their best week since July
NEW YORK — The stock market is keeping its momentum going, giving shares their best week in more than two months.Moderate gains on Friday led by health care and utility stocks…
NEW YORK — The stock market is keeping its momentum going, giving shares their best week in more than two months.Moderate gains on Friday led by health care and utility stocks pushed major indexes to their best weekly performance since July. A rebound in the dollar weighed on energy and material stocks.Bond prices tumbled, extending the previous day's losses, as the Treasury market struggled to absorb $71 billion of new supply auctioned off this week in the government's ongoing efforts to fund its stimulus programs.The stock market's seven-month rally was put firmly back on track this week after two down weeks driven by disappointing economic data. Major stock indicators rose 4 percent for the week.Investors have cheered more signs that the economy is healing, including growth in service industries, a surprise profit from aluminum maker Alcoa Inc. and the first gain in retail sales in over a year.On Friday, the dollar drew attention as it recovered some of its recent losses against other currencies after Federal Reserve Chairman Ben Bernanke reassured markets that the U.S. central bank will wind down its extraordinary stimulus measures when the time is right.Some investors interpreted Bernanke's comments as a sign the Fed might raise interest rates sooner than expected, which would boost the dollar versus other currencies.The dollar is a double-edged sword for the stock market. The dollar would benefit from higher interest rates but if the Fed tightens credit too soon it could choke off an economic recovery. On the other hand a continued fall in the dollar, which is more likely with lower interest rates, could trigger inflation."What's particularly concerning for investors is if there is a sharp, sustained move (by the dollar) in one direction or another," said Jordan Smyth, managing director at Edgemoor Investment Advisors.The moderate rise in stocks Friday comes two years to the day after the market hit its peak. The Dow is still down 30.4 percent from its high of 14,164.53, while the Standard & Poor's
last modification 2009-10-09 22:45:17
Add comment