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Anxieties were obviously fresh in the market place today as anticipations grew and rumors spread regarding the extent of the Federal Reserve’s plan to stimulate economic recovery. Trend lines for major market index values were lower this morning before opening bell and the red trending continued throughout the day until the end. The Fed policy report aimed to detail plans to purchase Treasury bonds and many worried about the overall scope and sequence of the plan. Earlier today, the Institute for Supply Management posted a report detailing growth in the service sector. Additionally, payroll company, ADP posted data that revealed an increase of 43,000 jobs for private employers. The changes from the mid-term election are being viewed as positive as more Republican control is viewed as business friendly. Overall, reports were strong today for the market but trending was mostly lower for a majority of the day. The current Fed verdict is in and the policy report revealed that the Federal Reserve will purchase $600 billion in Treasury bonds. The purchase will be phased in over time at approximately $75 billion a month. The phase in period will be between now and June 30th 2011. This move will keep interest rates lower for the long term. With this news, the dollar fell today against the euro, the British pound and gained against the Japanese yen. Still trends pushed commodity prices lower. Gold settled down today at $1,337.60 an ounce and silver fell to $24.44 and ounce. The Dow Jones Industrial Average ended the day up .24% and settled at 11,215.13. The Nasdaq settled up at 2,540.27 and the S&P 500 settled up at 1,197.96. The ten year treasury yield is 2.62%. Author: Frank Matto
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