Dow Makes a Halting Recovery Ahead of Fed Meeting

The Dow is making a gallant effort to undo Friday’s plunge, despite so-so economic news.

Jan 27, 2014 at 12:07PM

The Dow Jones Industrial Average (DJINDICES:^DJI) is down more than 60 points at noon EST after suffering some nasty losses last week. After worrying about emerging markets as the previous week closed, investors are likely turning their attention to domestic issues today -- particularly the commencement of the Federal Open Market Committee meeting tomorrow, in which taper discussions will be front and center.

Economic news doesn't excite
The U.S. Census Bureau released data on new single-family home sales this morning, and it wasn't wonderful. Sales in December totaled only 414,000, down from November's adjusted rate of 445,000 and much lower than the expected 450,000. Even more of a bummer is the rise in unsold home inventory to 171,000, which now represents five months' worth of sales.

The Dallas Federal Reserve released its Texas Manufacturing Outlook Survey, which showed a slight uptick in participants' business activity outlook in January to 3.8, a rise of just 0.1 from December. Most respondents saw no real change in business conditions from the previous month.

Analysts: Expect another $10 billion in tapering
As the FOMC begins its last meeting with Ben Bernanke in the driver's seat, markets will have to wait until Wednesday to find out if the taper will continue or be put on hold. Most observers are betting on another $10 billion in bond-buying reductions for next month, noting that both December's committee minutes and recent comments from Fed officials seem to indicate a slow and steady winding down of quantitative easing.

In other economic news, President Obama is expected to deliver a forceful State of the Union address tomorrow, stressing that he will implement economic agenda measures surrounding jobs, education, and infrastructure over the objections of Congress, if necessary, to get the economy back on track.

Financials mixed
JPMorgan Chase 
(NYSE:JPM) was down 0.41% at noon, while Goldman Sachs sagged more than 2%. There are a few tidbits of news concerning banks, much of which centers around JPMorgan and old Dow component Bank of America (NYSE:BAC).

JPMorgan CEO Jamie Dimon may be getting an even bigger pay boost than previously reported, according to Bloomberg. After voting to give Dimon a big $20 million raise this year, the bank's board is mulling whether he should be allowed to cash in 2 million stock options bestowed upon him back in 2008. 

Bank of America is under investigation for trading improprieties, as the bank's trading desk is suspected of putting its own trades in ahead of mortgage giants Fannie Mae and Freddie Mac, in order to profit from any interest rate moves the latter's trades might create. BofA had been flying high lately, hitting and holding the $17-per-share mark following third-quarter earnings. The stock is down today, however, by more than 2%.

Premium investing advice

It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Goldman Sachs. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers