The Dow's Calm Before the Fedhttp://www.fool.com/investing/general/2012/09/12/the-dows-calm-before-the-fed.aspx Jeremy Bowman
September 12, 2012
The Dow Jones Industrial Average (INDEX: ^DJI ) crept higher still today, gaining 10 points or almost 0.1% as the market shrugged off the day's two big news events and awaits word from the Federal Reserve tomorrow on interest rates and a possible new round of quantitative easing.
As expected, Germany's supreme court said the nation could participate in the European Stability Mechanism, the eurozone's new bailout fund. The decision made Germany the last country to approve the emergency funding and paved the way for the EU's biggest economy to contribute $245 billion to the $640 billion fund. The court did set restrictions on the funding including that it couldn't increase without parliamentary approval.
The major news event of the day, and probably the biggest one in the tech world this year, was of course the unveiling of Apple's (Nasdaq: AAPL ) iPhone 5. The device is thinner and 20% lighter than the old one, and it has a larger screen at 4 inches and improved resolution and quicker processing time, but there were no major surprises in the new phone. Apple shares finished a volatile trading day up 1.4%.