Dow Record Extended (Bloomberg)
Today, a report showing a jobs increase and positive comments from the Federal Reserve on the economy contributed to further rises in stocks, extending the all-time high in the Dow Jones Industrial Average. “The market’s responding to some degree to fundamentals,” Stephen Wood, New York- based chief market strategist for North America at Russell Investments, said. “The economy is growing, albeit at a frustrating pace,” he continued. “We’re seeing housing begin to contribute rather significantly to the economy.”
Fed: Government in Way of Recovery (MarketWatch)
According to a Federal Reserve survey of business contacts released today, the government is getting in the way of sustainable economic recovery. The business contacts cited fiscal and healthcare policies impeding private spending and hiring. They also noted that fiscal policies, along with higher gas prices, were responsible for slowing retail sales.
Euro Slips against Dollar (Reuters)
In advance of tomorrow’s European Central Bank monetary policy meeting, the euro fell against the dollar, as investors fear the bank may flag future interest rate cuts. “While I think lowering rates may be feasible, I doubt the ECB will take this step without giving some sort of red flag to the market at least one meeting beforehand to indicate that it may do so,” said Neal Gilbert, market strategist at GFT in Grand Rapids, Michigan. “And I believe tomorrow’s meeting is where that flag will be waved.”