subject: The Morning Outlook [print this page] The Morning Outlook The Morning Outlook
Yesterday was a tough day on Wall street with all the major indices dropping roughly a percentage point. With investors all running to a safe bet, Gold has tested new highs, currently trading at $1,242.80 up 3.50 or .28%. This morning futures are all pointing up, but only very slightly about (.4%). Oil plummeted yesterday, but is climbing back slightly. The current price is now at $71.67, up .23 or .3%.
Ben Bernake commented on the recovery yesterday stating ""My best guess is we will have a continued recovery, but it won't feel terrific,". The economy is not growing fast enough to drive down unemployment rate and fears of the Euro-zone default continue to rack wall street. When asked when the FED will raise interest rates, Bernake gave no indication of a specific date. Mr. Bernake's take on the overall recovery is that it is "pretty good". The U.S. economy is going to have to crawl before it can walk, and then walk before it can run. I am not sure what everyone is expecting, but this slow, organic recovery is necessary to avoid inflation and a popping of another bubble.
The Euro continues to trade low, 1.1934 against the dollar.
In BP news, nothing new has been reported although he press is enjoying the feeding frenzy. The company has released new advertisements stating their good intentions and promising a cleanup although these ads often are a source of more anger rather than reassurance. After watching the evening news it is evident that there will be no easy way out in the upcoming months.
In world news, president Ahmadinejad is visiting China, The U.K. is opposing the Euro-bailout and U.S. forces are increasing in numbers in South Afghanistan, now the U.S.'s longest war.
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