October 1, 2007 - Stocks Rise, Through It All

Although the stock market ended with respectable gains, there was turbulence along the way, including a dive in August when credit woes drove major indexes more than 9% off records set in July. Oil prices hit an exchange record high and the dollar hit a low against the euro. The Dow Jones Industrial Average recovered to end the quarter up 487.01 points, or 3.6%, at 13895.63, ahead 11.5% this year. The Fed Res helped in Sept. with half percentage point cut in its target short-term interest rate, sending the Dow to its best month since May and the best Sept since 1997. There could be more bad news from the credit crunch. The economy is in transition, moving from slow expansion to what investors hope will be more robust output aided by further interest-rate cuts from the Fed. It could move from slow expansion to shrinkage as well.