Trading Continues Its Shaky Bounce Back.
Julio Gonzalez, M.D., J.D.
The stock market rallied back Tuesday after the beating it took a week ago by posting. On Tuesday, the Dow Jones Industrial Average posted a 547.87 point gain while treasury notes closed 3.158%.
The majority of the recovery sprung from corporate earnings data. Among these, Goldman Sachs and Morgan Stanley posted healthy third quarter profits. But the big news of the day came from Netflix when it announced a gain of 7million new users, vastly surpassing the 5 million gain predicted by analysts.
But concerns from the Asian markets and increasing interest rates in the upcoming two months continued to dog investors. In particular, discussions amongst members of the Federal Reserve of raising interest rates faster than previously planned chilled the market.
By Wednesday morning the Dow Jones Industrial Average lost 319 points, but gained back just under 200 of those points putting it on track to close about 100 points over the span of the day.
Although the economy remains strong, the trajectory of the stock market over the next few weeks is likely to be determined by the balance of the strength of the market indicators and the threat of higher interest rates.
Dr. Julio Gonzalez is an orthopaedic surgeon and lawyer living in Venice, Florida. He is the author of The Federalist Pages and serves in the Florida House of Representatives. He can be reached through www.thefederalistpages.com to arrange a lecture or book signing.