October 23, 2006

THROW THE BUMS OUT?:

U.S. Stocks Advance as Oil Slides (Hilary Johnson, 10/23/06, Bloomberg)

The Dow Jones Industrial Average rose 102.14, or 0.9 percent, to a record 12,104.51 at 3:39 p.m. in New York. [...]

Optimism that the pace of consumer spending will shore up the economy and companies will beat earnings estimates spurred stocks to build on an October rally that pushed the Dow above 12,000 for the first time. The S&P 500 has climbed 3.4 percent this month, putting it on pace for its best month this year.

Central bankers begin a two-day meeting tomorrow. All 106 economists surveyed by Bloomberg News expect the Fed to keep interest rates unchanged at 5.25 percent for a third straight month as a weakening housing market slows the economy.

Gross domestic product probably rose 2 percent in the July through September period, according to economists, easing from a 2.6 percent rate in the second quarter. The Commerce Department will release the data on Oct. 27.

The GDP report is also projected to show consumer spending, which accounts for about 70 percent of the economy, grew at an annual rate of 3.1 percent last quarter, up from a 2.6 percent gain the previous three months.

Today, oil retreated for a second day on skepticism that the Organization of Petroleum Exporting Countries will cut production by as much as members pledged last week. Crude oil for December delivery declined 0.9 percent to $58.81 a barrel in New York. Prices have plunged 25 percent from the record of $78.40 a barrel reached July 14.


Democrats promise they can reverse the nation's course....

Posted by Orrin Judd at October 23, 2006 4:57 PM
Comments

Witches and queers care nothing about the economy and nothing about foreign policy. All they have is their hatred and their sickness.

Posted by: Lou Gots at October 23, 2006 7:29 PM

It sets up an interesting feedback loop. The thirdworlders dependent on oil revenue have to keep pumping more in the face of falling prices which of course drives prices lower.

Posted by: Pepys at October 23, 2006 8:26 PM
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