Wednesday, October 25, 2006

Wall Street reaches new record highs

The Dow Jones Industrial Index or the Dow the tracks the performance of 30 of the largest and most widely held public companies in the United States.

The Dow is reaching record highs. It rose 10.97, or 0.09 percent, to 12,127.88, eclipsing the record close of 12,116.91 set Monday. The Dow also set a new trading high of 12,133.80, edging past a day-old record of 12,125.16 before giving back some of its gains.

These record highs of the stock market are coming at a time of increased investor confidence, looking at how hard the US Courts are cracking on white collar crime.

Enron is one of the biggest corporate financial scandals in US history. Jeffrey Schilling, the former CEO has been sentenced to 24 years and 4 months in federal prison, for his role.

Pundits and investors are watching The Federal Reserve's Open Market Committee which began a two-day meeting Tuesday. Many investors expect the central bank's policymakers to leave interest rates unchanged for the third straight meeting.

If interest rate remains unchanged, it is good for the stock market.

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