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July 27, 2005

U.S. confidence up, rates down, Wed., July 27, 2005, 2:44 PM

In 90 minutes, the Dow has moved up +35 points in a mid-day rally following the Fed Beige Book release, showing selective anecdotal evidence of confidence in various local economies of the U.S.. Immediately, interest rates dropped, which sent equities higher.

But the drop in interest rates ought to tell you that a risk premium had been building in them recently as traders were getting concerned about numerous matters. They still are, but at least the Fed report has relieved some pressure.

Given that I am not a day trader, these are the kinds of moves that I find meaningless.

Posted by Posted by Bill Cara on July 27, 2005 02:44:38 PM | Category: Cara Today in the Market