By Richard Russell
The Fed is still wrestling with the idea of raising rates. Ironically, raising rates could help business. A rate rise would allow the small banks to make needed loans to small business. When small business gets moving, inflation could move up, which explains why gold is creeping higher.
The stock market is taking a possible rate increase as a negative omen. As I write at mid-day, Industrials are down 113, Transports are down 20 and the NASDAQ, which has become more and more of an indication of market direction, is down 41. However the big 1000 even numbers are holding with Industrials above 16,000, Transports above 7,000, and the NASDAQ above 4,000.
Frankly, I don't like the way the stock averages that I follow closely are all dropping today in unison. If the Dow breaks 16,000, I'll consider it a bearish omen for the entire market.
Concerning individual stocks, Apple is down ... Log in or subscribe to continue reading.