August 6, 2007


Explosive day for the Dow: Blue-chip barometer rebounds nearly 300 points recovering from last Friday's selloff, posting biggest point gain so far this year (David Ellis, 8/06/07, CNNMoney)

Speculation that the Federal Reserve will offer some consolation to investors at its policy meeting Tuesday in light of the recent woes in the subprime, credit and housing markets, also helped prop up stock prices, said John Wilson, chief technical strategist at Morgan Keegan.

"I think with everything we've seen recently and the shifting momentum to the downside, there's hope out there that we will hear something soothing from the Fed," said Wilson.

The central bank is widely expected to leave the Fed funds rate untouched at 5.25 percent, where it has remained since August 2006.

But Wall Street will be paying particularly close attention to the accompanying statement for any clues about the central bank's outlook on interest rates and its stance on the recent woes in the credit markets.

Posted by Orrin Judd at August 6, 2007 4:26 PM
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