Dow Diary: Abandoned By the Fed

Dear Diary,

Sorry if I’m a little rainy-face today. I’m just disappointed; it looks like the Federal Reserve is significantly ratcheting down its money-printing operations. The Wall Street Journal is reporting that the central bank has significantly scaled down the potential scope of its purchases of U.S. Treasuries, meaning that the surge in government-abetted spending and investing I’d previously expected isn’t necessarily coming.

Too bad, because with the economy still in the dumpster, it’s hard to imagine our fortunes improving in the short term without government help.

The economic data today was so-so at best. Durable goods orders increased in September, but that was mainly because some people bought some airplanes. If you discard that increase, though, most businesses are spending less money on equipment. Not a good sign. Meanwhile, new-home sales rose from a record low, but remain in the “awful-to-crummy” range.

There just isn’t a lot of reason to climb higher on a day like today. Not that the news was panic-inducingly awful — I just don’t see a lot of reason to be upbeat today. Not really surprising, then, that I lost 43 points.

Let’s see what happens tomorrow,

The Dow Jones Industrial Average Dow Diary: Abandoned By the Fed