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Rescue package of U.S. $ 800 Billion Save Dow Jones

















Jones Index and the Standard & Poor's still an increase points again, after the U.S. Central Bank (The Fed) announced a new rescue package worth U.S. $ 800 billion. However, Nasdaq is still red turbulence Cisco shares. 

In trading Tuesday (25/11/2008), Dow Jones index rose 36.08 points thin (0.43%) to a level of 8479.47. Index S & P 500 also rose thin 5.58 points (0.66%) to 857.39 level. 

This is the first time for the Dow Jones index and S & P noted the increase in 3 days in succession since the end of August. 

However, Nasdaq still recorded a decrease in spidery 7.29 points (0.50%) to a level of 1464.73. Nasdaq weakened after Cisco announced plans to close operational in the U.S. and Canada for 5 days in order to reduce costs. 

Increase Dow Jones and S & P occurred after the Fed announced a fiscal stimulus worth U.S. $ 800 billion. Central Bank will buy billions of dollars of debt and mortgage-based securities or mortgage backed securities in order to increase the flow of housing loans, student loans, car and credit cards. 

The Fed steps to stimulate more consumer spending is making a direct financial shares and stronger retail. JPMorgan shares appreciated almost 8%, Wal-Mart also appreciated 3.6%. 

"Step on the Fed today is another step to try to loosen tight credit market and provide more credit to the activities of consumers and business people," said Michael Sheldon, chief market strategist RDM Financial, as quoted from Reuters, Wednesday (26/11/2008 ). 

"Part of the purpose for the purchase of mortgage assets Fannie Mae and Freddie Mac aims to reduce the likelihood of an interest rate of housing credit, so it can further stabilize the housing market," added another. 

The start of trade, shares were trading shake the data released by the Ministry of Trade. Data shows that the economy grew 0.5% during the third quarter as consumer spending anjloknya. This figure is a revision from the original figure of only 0.3%, and analysts considered as a sign of the beginning of a weaker economy