This is The Wall Street Digest Hotline Update for Tuesday, April 29, 2008, at 6:00 p.m. EST.
Traders are waiting for the FOMC rate cut announcement at 2:15 tomorrow. At the close, the Dow lost almost 40 points, closing at 12,831, while the Nasdaq gained almost 2 points, closing at 2,426. Oil closed $3.46 lower at $115.29 per barrel, and gold closed $24.00 lower at $871.50 an ounce.
The Fed is expected to cut the Fed Funds rate from 2.25 percent to 2.00 percent tomorrow. First quarter GDP will also be released Wednesday morning. The Fed Funds interest rate at 2.25 percent is below the 2-year note at 2.35 percent for the first time in years that is bullish for stocks and the economy.
Let's continue to avoid the housing sector, as well as most of the banking and financial sectors. I would not purchase residential nor commercial real estate. I still do not expect the housing market to bottom in 2008.
Stay close to our Tuesday/Friday Hotline Updates. I will be adjusting our portfolio of recommendations to capture maximum profits from a stock market rally that will surprise everyone, but you.
The next Hotline Update will be on Friday, May 2, 2008, at 6:00 p.m. EST.