A second day of no economic news to speak of is taking its toll again on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI). Though the index was boosted early in trading, with gains topping out at 64 points, it has since fallen, waffling between gains and losses. Investors may be sending the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) mixed signals as they wait to hear Fed Reserve Chairman Ben Bernanke testify before Congress tomorrow. Luckily for the index, it’s got some support from within to push it higher.
The Bernanke factor
During a lean week of economic news, it’s no wonder that Wall Street is waiting to hear what Bernanke says to Congress about the state of the economy. Speculation about the slowdown of the current stimulus policy is running rampant as more and more signs point to members of the Federal Open Market Committee being in favor of cutting back.
Though the recent FOMC meeting resulted in no changes to the current bond buyback policy, the meeting’s minutes and subsequent comments from members seem to be preparing investors for the inevitable slowdown — though no timeline has been provided. Since Bernanke is speaking with the Joint Economic Committee on the Hill tomorrow, the slightest hint of change may send the markets into a tizzy.
Inside the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI)