Issue: 10/3/07 Wednesday
By Global Economy Guru, Tom Harvey…
The market went down 79 points and closed below 14,000 today. That was a reduction of more than 0.5%, a fairly hefty fall, but nothing close to a record. Today the dollar strengthened against all other currencies. Otherwise, it was a sideways day for the markets.
The US service economy, feeling the drag of the slumping housing market, expanded at a slower pace in September than in August, a trade group said Wednesday. The Institute for Supply Management’s index gauging the health of non-manufacturing industries registered at 54.8 in September, down from 55.8 in August and below the 12-month high of 60.7 reached in June. The index, now at its lowest point since March, was in line with economists’ estimates. A reading above 50 indicates economic expansion in the service sector, while one below 50 indicates contraction. The service sector makes up 80 percent of U.S. economic activity.
Don’t get too excited. This is all ho-hum. When we get closer to October 30th, when the Fed meets again to consider another rate reduction, we will review all those statistics and decide what they mean to the Fed. It really doesn’t matter what we think. It only matters what the Fed thinks.
Here are Today’s closing details:
DJ30 – 13,968 (Down 79 points)
10 year US Treasury Bond – 4.54% (Up 0.01%)
US Dollar – $1.4107/Euro.
Gold closed at $736 per ounce. (No Change)
Oil Closed at $79.94 (Down 0.11)
Gasoline is $2.00 (Up 0.01)
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on Wednesday, October 3rd, 2007 at 6:39 pm and is filed under U.S. Economy.
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