PortfolioCrafter - Market Commentary 11/27/07
November 27th, 2007 / 10:44 pm / by portfoliocrafter
Stocks rose Tuesday, reclaiming most of the day’s gains at the end of a choppy afternoon in which investor enthusiasm for recently battered shares was tried by ongoing worries about the economy.
The Dow Jones Industrial Average rose 215 points, or 1.7%, to end at 12,958.4, with all but two of its 30 components ending higher.
The S&P 500 index added 1.5 percent and the Nasdaq composite rose 1.6 percent.
U.S. home prices fell in every region of the country in September, according to the national Case-Shiller price index released by Standard & Poor’s. The study found prices fell 4.5% nationally during the past year. Read Economic Report.
Economists at Goldman Sachs now expect the Federal Reserve to cut interest rates to 3% by mid-2008, down from its earlier forecast of 4%, saying that the worsening housing downturn has pushed the risk of a U.S. recession next year to 40% to 45% from around 30% previously.
Treasury prices slumped, boosting the corresponding yields as investors stepped back after Monday’s bond market rally. Bond prices and yields move in opposite directions.
The dollar gained versus other major currencies. Oil and gold prices slumped.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter
