Business

Stock market to be changed
by Claudia Sonea

Wall Street tried to recover from the losses incurred on Friday and turned towards volatile sessions. There are high expectations from the Federal Reserve meeting after the last two weeks of twisting trades. The nation's benchmark rate is expected to remain steady at 5.25 percent; economic assessment and credit are still a matter of concern. The Dow Jones industrials 286 points are the subject of great controversy, but Charles Norton, principal and portfolio manager at GNI Capital Inc., advises to not be too surprised that financial stocks and regional banks sometimes bounce like that, but it won't last. The global credit markets are also affected by the stock market situation, investors are afraid that some loans made to borrowers with poor credit will not be disclosed to soon. Another problem is the liquidity crisis and represents a great risk to the financial markets. Monday rally brought big changes: bond prices fell; Warren Spector, Bear Stearns Cos. co-President and co-Chief Operating Officer, resigned and the stock price fell briefly below 100 dollars and then quickly rose to $113.81. The instability is explained by the future meeting of Fed and the investors are not too keen in making big bets despite the fact that the stocks are having their biggest advance. Credit markets are about to seize up and more changes are more likely to occur after the Fed's decisions will be made public. More to come on this subject!

related story: http://news.yahoo.com/s/ap/20070806/ap_on_bi_st_ma_re/wall_street;_ylt=AhyF7Au.hHioh_xF0.DRQiys0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 11:58 AM