Trading in WallStreet - January 16, 2008

DOW JONES INDUSTRIAL AVERAGE(DJIA) summary
Index Value: 12,466.16
Trade Time: Jan 16
Change: Down 34.95 (-0.28%)
Prev Close: 12,501.11
Open: 12,476.81
Day's Range: 12,392.27 - 12,613.13

The DJIA still traded in a wide range of more than 220 points as volatility remains. It was listless at the start and was down more than a hundred points early on. It then recovered and was strong by the mid-afternoon session and was up more than a hundred points. It however went on a steep dive in the final hour or so of trading.

US consumer prices (inflation) rose in 2007 at the fastest pace in 17 years spurred by gasoline and food prices. Consumer prices rose 4.1% for all of 2007, up sharply from 2.5% in 2006. Energy and food prices were up by the largest amount since 1990.

Core inflation (which does not include energy and food) rose 2.4% in 2007, slightly lower than the 2.6% increase in 2006. (It is the performance of core inflation that the Fed closely monitors.)

Some analysts are with the view that the slight drop in core inflation for 2007, together with various reports that suggest that the economy is in the grips of a serious slowdown will convince the US Federal Reserve; that interest rates it should be reduced by an aggressive half-point percentage when officials meet on Jan. 30-31.