The central bank begins a two-day meeting to discuss interest rates, but economists expect rates to stay at historic lows. Plus: New housing data gives Wall Street a boost.
WALL
STREET IS BANKING ON WASHINGTON...TO HOLD THE LINE ON INTEREST RATES.
THE FEDERAL RESERVE STARTED ITS TWO DAY POLICY MEETING, WHICH ENDS WITH AN
ANNOUNCEMENT ON WEDNESDAY AFTERNOON. ECONOMISTS EXPECT THE FED TO KEEP THE KEY
RATE WHERE IT STANDS, BETWEEN ZERO AND A QUARTER PERCENT...THEY'RE PREDICTING
RATE HIKES WILL BEGIN EARLY NEXT YEAR...TO KEEP INFLATION IN CHECK.
EVEN WITH INTEREST RATES NEAR HISTORIC LOWS, THE RECOVERY IN THE HOUSING MARKET
HAS BEEN PAINFULLY SLOW. THE GOVERNMENT'S LATEST MEASURE OF HOME PRICES SHOWED
AN UPTICK IN JULY...BUT ALSO FOUND PRICES MORE THAN 4-PERCENT LOWER THAN LAST
YEAR.
STILL, WALL STREET TOOK IT AS A SIGN THE HOUSING MARKET IS STABILIZING.
THE DOW CLIMBED 51 POINTS. THE NASDAQ ADDED 8.
THE AUTO INDUSTRY IS SHOWING NEW SIGNS OF LIFE. GENERAL MOTORS ANNOUNCED IT'S
INCREASING PRODUCTION AT THREE PLANTS IN KANSAS, INDIANA AND MICHIGAN.. BECAUSE
OF HIGHER DEMAND FOR G-M CARS. THE ADDED SHIFTS MEAN 24-HUNDRED WORKERS WILL BE
RE-HIRED.
EVEN THE TRAVEL INDUSTRY HAD SOME UPBEAT NEWS. CARNIVAL CRUISE LINE REPORTED
BETTER THAN EXPECTED RESULTS. THE COMPANY'S PROFIT DROPPED 20-PERCENT... BUT IT
STILL EARNED MORE THAN A BILLION DOLLARS IN THE LAST QUARTER...AND RAISED ITS
FORECAST FOR THE REST OF THE YEAR.
FOR ALL THE DAYS BUSINESS NEWS, CHECK OUT CBS MONEYWATCH DOT COM. IN NEW YORK,
I'M AC
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