This is The Wall Street Digest Hotline Update for Friday, September 14, 2007, at 6:00 p.m. EST.
Blue-chip downgrades couldn’t push the Dow Industrial Average down today. At the close, the Dow gained over 17 points, closing at 13,442, while the Nasdaq rose slightly over one point, closing at 2,602. Oil closed down $0.99 to $79.10 per barrel, and gold closed down $0.10 at $717.80 an ounce.
August retail sales, up only 0.3 percent, missed expectations, but auto sales were up 2.8 percent, the biggest increase since July 2006.
Today’s volume was weak, as traders and investors wait for the FOMC meeting next Tuesday. Wall Street is expecting a Fed funds rate cut at 2:15 p.m. on September 18.
The dollar has already lost 35 percent of its 2002 purchasing power. More rate cuts are coming and they will further weaken the dollar. Global/international investments will enhance your investment returns as the dollar declines against other currencies.
Real estate is an illiquid, high-risk investment! Do not look for real estate bargains. Renting a home or condo is cheaper than owning. When that scenario reverses, it will then be safe to buy a home or condo. Real estate analysts do not expect the housing downturn to bottom until 2009 in Florida and California.
Stay close to our telephone/e-mail/website Hotline Updates.
The next Hotline Update will be on Tuesday, September 18, 2007, at 6:00 p.m. EST