This is The Wall Street Digest Hotline Update for Tuesday, June 19, 2007, at 6:00 p.m. EST.
After a seesaw session, the major indices finished in the black today. At the close, the Dow gained 22 points, to close at 13,635, while the Nasdaq remained flat at 2,627. Oil closed up $0.01 to $69.10 per barrel, and gold closed up $4.80 at $664.70 an ounce.
New homes sales were down 2.1 percent in May, but permits were up 3.0 percent, which helped to relieve investors’ concerns, as did declining Treasury yields. The yield of the 10-year Note fell to 5.09 percent after hitting a five-year high last week. The decline in yields helped to alleviate worries about high interest rates further hurting the nation's sluggish housing market.
For the next few weeks, Wall Street will be focusing more on corporate news and pre-announcements ahead of the second-quarter reporting period. And although many companies have already lowered their earnings outlook, the U.S. economy is still showing signs of faster growth in the second quarter.
Record global liquidity of two trillion dollars is the key to this bull market. You should remain fully invested, with at least 50 to 75 percent of your portfolio allocated to our recommended global/international investments. The U.S. stock market is still substantially undervalued at 22 percent. Stay close to our telephone/e-mail/website Hotline Updates.
The next Hotline Update will be on Friday, June 22, 2007, at 6:00 p.m. EST.