Stocks Expected To Recover After Huge Drop

by Darren

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What goes down must go up, or something like that. After a massive drop on Wall Street yesterday, stocks are poised to recover a bit today, based on optimistic outlooks from companies like GE.

Federal Reserve monetary policymakers meet Jan. 29-30, and the market widely expects them to lower the key interest rate, perhaps by a half-point.

And at 11:50 a.m. EST, President Bush is expected to speak on the economy and discuss a plan to stimulate the economy through tax rebates and other strategies.

Investors also awaited consumer sentiment data from the University of Michigan, which is expected to indicate a decline as worries escalate about a possible recession. Though not a perfect predictor of consumer spending, the report is closely watched; consumer spending accounts for about two-thirds of the nation’s economy.

Investors are definitely skittish, and it’s Friday! It would only take one false move to make a mess of things in short order.

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