The Fed’s
minutes to its January policy meetings showed heightened concerns over the economy, and policymakers said downside risks remain even after the 50 basis-point easing on Jan. 31. Board members noted that the data seen since December was "decidedly downbeat on balance". Fed officials believed that a fiscal stimulus package would support growth in the second half of the year, but some said it might not help in the near-term, when downturn risks are the largest. The minutes also said that the inflation data was also "disappointing."
The headline CPI is now 4.3% higher than a year ago, up from a 4.1% year-over-year pace in December, while the core inflation rate year-over-year rose from 2.4% to 2.5% in January.
Tracking Dow Jones on Wednesday,20/02/08.
Stocks languished in the early-going amid concerns about credit market liquidity and a worse-than-expected January CPI report, but eventually turned things around and advanced in the afternoon trade.
After digesting the economic data, the stock
market found a bullish stride that was helped along by the outperformance of the financial and technology sectors.
The bulls are in full control today and ended the day with a bullish marubozu candlestick.Looks like they are continuing the turbo charge fuel salvo.
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Thursday brings economic news on jobless claims, leading economic indicators, manufacturing in the Philadelphia region and weekly oil inventories.
The market makers are taking everyone on a hip-hop trading sessions.On Tuesday, rallying in the early-going and then selling off into the close. On Wednesday it was just the opposite.
The candlestick has a long tail shadow beneath it for further range play being reserve for bad news again.