Munching on the Numbers – by Max Whitmore

12-16-09

MUNCHIN’ ON THE NUMBERS

A pretty short report today, as nothing really happened of interest except the Fed’s FOMC meeting report was issued at 2:15pm and it said two things investors heard. One, rates will stay low for an “extended period.” Two, the economy is showing some life again, but it is clearly too early to call us out of the woods, as one analyst put it.

The really tough question is when should the Fed begin to tighten interest rates? Believe me, that answer will have a lot to do with whether investors continue to plow funds into the stock market. But, I expect that the wording of the FOMC’s written statement, while encouraging was not enough to either spur or deter investors. It was purposely vague, nearly a clone, though not an exact repeat of last month’s statement.

The Consumers Price Index was announced today at 8:30am, along with housing starts and building permit activity. CPI was almost exactly like last month. The other two numbers were higher than last month, but still quite subdued compared to several years ago. But, nevertheless, investors seemed glad to see the steady to better numbers all round, especially after the PPI number yesterday was a bit of a shock to everybody.

The only other action today had more to do with Congressional activities and the battle between Conservative Republicans and Socialist Democrats. The vast difference between these two is all finally hanging out and we will see which direction the voters of the country chose. In the end, it will be up to them to choose our government style by keeping Socialists or bringing in Conservatives in 2010 and 2012. That one is anybody’s guess, at this point.

As I said, not much on the plate today, so I will be signing off until tomorrow. As always, I do hope your trading day was a profitable one. Will be back here tomorrow, the Lord willin’ and the creek don’t rise.

NEED SOMETHING TO TALK ABOUT TONIGHT?

SIX MAJOR IMPACTS ON THE MARKET TODAY

1. Congress heads for finish line 2009 and hopes to get home by weekend, shoving many bills through.

2. GOP forces the reading of amendment to health bill-its design is to take over all health care.

3. Copenhagen gathering remains a real messy meeting. Nobody seems to like anybody at that meeting.

4. Oil and dollar advance after the Fed’s expected action. But, dollar gaining on other world money.

5. Bernanke named “Man of Year” by Time Mag. Looks like he will be reconfirmed for a second term.

6. Feds sue Intel for monopoly–like action, it says. Intel says Feds are trying to bust it up with this action.

Man of the year huh. Let’s se what a year brings. Need more time here. It is getting very ugly in Congress, very ugly. What have they done to my country? Will the Feds break up Intel?? Wish I know that one. Will Congress approve the $1.8 trillion (that is a T) debt increase before adjourning?? WOW!!!

DAILY CHANGES WEEKLY

Closes as of Wed. 12-16-09 CHANGE (cash) KEYLINE# ABV/BLW

DOW INDU. 10,441.12 -10.88points 9,845.65 ABV +595.47

S&P 1,109.18 +1.25 points 1,059.51 ABV +49.67

NASDAQ 2,201.91 +5.86 points 2080.23 ABV +121.68

30 YR BONDS 117 17/32 -1/32 115 27/32 ABV + 55/32

GOLD $1,135.00 +$11.50 $1,049.00 ABV $86.00

OIL $72.68 +$1.99 $83.24 BLW $10.56

DOLLAR INDEX 76.98 +.07 79.93 BLW 2.95

COPPER $3.2080 +$.0665 $2.6375 ABV +.5705

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