After tumbling on news of a static interest rate from the
"I am utterly shocked," said Stephen Sachs, director of trading at
Market watchers attributed the reaction--or lack thereof--to news that authorities had staved off an attack on aircrafts leaving Heathrow International Airport in London as another example of investors' hesitance to react unless there is actual imminent economic damage.
Although companies cited as targets of the attack, such as
In fact, at its low point, the Dow Industrial Average dipped 31.46 points, but by close, it was up 0.44%, or 48.19 points.
Experts credit a 3.1% drop in oil futures as one cause of the upswing. Oil dropped to $74 per barrel on speculation of reduced air travel, and control in inflation indicated by the stabilization of the interest rate.
Strong quarterly profit reports from insurers, such as
And then there is the very fact the plot was stopped. Some say that it's a sign everything is working, so it's business as usual.
"The fundamentals are still good. The economy is still growing 2.5% to 3%," said Alfred Kugel, chief investment strategist at
Still, he noted, "I find it very surprising that stocks are up. Oil prices are falling because of the terrorist situation in England," he said. "I don't see that as a good reason to rush out and buy stocks."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
