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Make or Break Week for Wall Street

Published 11/02/09 Craig Harrington - Print Article
E-mail - editor@economyincisis.org

After several months of market surges which pushed the Dow beyond 10,000 points and pushed each of the three composite indexes to 2009 highs, Wall Street has been battered in the past week of trading.

Analysts with CNNMoney.com generally agree that last week marked the end to the rally, but there is some hope that November will act as a starting block for an end-of-the-year boost. That hope was bolstered by strong earnings throughout the morning Monday.

Wall Street investments surged after the opening bell amid reports that Ford Motor Co. was once again raking in profits. According to Bloomberg News, the automotive giant posted a $997 million profit I the last fiscal quarter, a huge boost for the once embattled firm. This is the first period of operational profitability at Ford since 2008. CEO Alan Mulally sees the company reaching sustained profits in 2011.

This week could easily dictate market trends for the rest of the month with earnings reports still coming out and a potential rally in the making on the first day of trading. According to Thomson Reuters, with roughly two-thirds of the S&P 500 companies having reported their quarterly earnings profits are down 17.5 percent from the same period one year ago.

The Federal Reserve’s Open Market Committee is slated to meet Tuesday to discuss whether or not the central bank should raise key interest rates. The expectation is that the bank will keep rates low in order to boost liquidity.

Rounding out the news, as the euro-dollar disparity continues to grow dollar denominated commodities are becoming more expensive. The nearly one dollar surge of oil futures this morning is largely due to this phenomenon.

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