The stock market barely moved on Monday, as investors patiently waited for the monumental news that is set to break out of Washington tomorrow. The Dow Jones Industrial Average finished the day down 9.72 points (-.12%) and the S&P 500 was slightly up by 1.29 points (.15%).
There are two huge announcements planned to come out Washington tomorrow. First, Treasury Secretary Timothy Geithner will come out with his new plan to overhaul the government’s $700 billion financial bailout package (TARP). Geithner’s plans will be analyzed very closely, and the movement of the stock market will definitely reflect how effective investors believe his new plans will be in fixing the credit crisis.
Second, the Senate is expected to vote on an $827 billion stimulus bill tomorrow. Even if the bill passes in the Senate, the government will be faced with the challenge of matching the Senate’s bill with the House of Representative’s $819 billion bill that was passed a couple of weeks ago. While it is widely expected that the bill will pass through the Senate tomorrow, there is still some worry that the Senate Republicans might come together and defeat the bill. Obama strongly warned the Senate Republicans from voting against the stimulus package, as he said that failure to pass the bill “could turn a crisis into a catastrophe.”
Today’s action in the stock market was the perfect example of the calm before the storm. And, with all of the government news coming out tomorrow, the storm has the potential to be epic. Whether the markets go up or down tomorrow is anyone’s guess, but with the monumental announcements about the stimulus package and the bank bailout plan set to be announced, it will definitely be an interesting day on Wall Street.
Until tomorrow,
Niki Pezeshki
College Trillionaire
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