|How Now Ol' Dow? |
|Scraping the Nasdaq off the Floor |
A 1.7% decline in crude futures prices to below $30 a barrel (natural gas futures dipped 0.7% after yesterday's 11.4% ascent) helped traders mainly overlook Greenspan's warning that the "sharp rise in energy prices, if sustained, is worrisome" because the economy "is obviously at increased risk of untoward events" as it goes through a "transition from unsustainable to more modest rates of growth." (That phrase was also music to traders' ears.) Finally, Greenspan took pains to refute any comparison between the current situation and the fall of 1998, as TheStreet.com's Elizabeth Roy Stanton duly
In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending.