DowÂ Â Â 13,595.10Â Â Â +27.23Â Â Â +0.20%
NasdaqÂ Â Â 2,810.38Â Â Â +15.55Â Â Â +0.56%
S&P 500Â Â Â 1,509.65Â Â Â +1.21Â Â Â +0.08%
This week proved to be one governed by economic numbers as the Market took a hard hit on Monday when oil futures surged to a new high of $94 for dollars due an increasingly weakening dollar and Mexico’s state oil company that suspended one fifth of its’ production as a result of weather. The falling value of the dollar has drawn investors to crude futures as a hedge against the weakening currency. Also, the weakened dollar has made oil futures less expensive to people trading in other currencies.
Bad news did not stop there for on Tuesday the New York-based Conference Board reported that the Consumer Confidence Index fell to 95.6 versus 99.5. This proved to be the lowest reading since October 2005.
However, relief finally came from the Fed that lowered rates to 4.50 percent. The Dow Jones Industrial average gained more than 130 points, S&P 500 gained 18.36 and Nasdaq rallied 42.41 points. The markets could not keep this momentum through the week as the Fed reported that future rate cuts are unlikely. Investors are now faced with to major issues, a weakening economy and the end of the “safety net” Fed Rate Cut.
This week’s economic news was unsettling for investors and another major red flag looms. We are about eight weeks from Christmas but the consumer index has fallen, showing a possible danger this holiday for retailers.