12/17/09

Good morning. The big mid-day news yesterday was the Fed’s announcement. They are leaving overnight rates unchanged, as expected, but the markets were more interested in the verbiage of the statement. “Economic activity has continued to pick up and that the deterioration in the labor market is abating. The housing sector has shown some signs of improvement…Household spending appears to be expanding at a moderate rate…”
Jobless Claims rose unexpectedly last week. This news, combined with a rally in the value of the dollar, is giving the stock markets “fits” and lowering interest rates.