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For the week of January 31 - February 4, 2000 Following the worst January since 1990, the bulls reversed course and produced a solid week across the board. The Dow Industrials gained 325.5 points, the S&P 500 was up 64.25 points, the NASDAQ Composite gained a much stronger 357 points, while the Russell 2000 gained 21, and the Long Bond added more than a point, with the yield dropping all the way down to 6.22%. It was a big news week as well, with the Fed meeting going on Tuesday and Wednesday, and producing the well-advertised and predicted quarter of a point increase in interest rates. The Fed has now raised interest rates a full point since June, but the market seems to be weathering the storm well. Then of course, on Friday, a stronger than expected Jobs Report came through-haven't the Jobs Report been "stronger than expected" month after month, for as long as anyone can remember? At any rate, the unemployment rate, at 4%, hits a new 30-year low, and sets off more talk about the Fed's need to tighten further. At the bottom line, this strong economy is producing strong corporate earnings, and as long as inflation remains under control, the Fed can fight only the worry of impending inflation so long. At this juncture, the market seem to have the ability to work higher, or as we have seen already in this still early year, the journey will be choppy indeed. (The preceding views are those of Liss Financial Services and not necessarily those of the Job Connection/Hiring Network.)
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