CNN 2011-08-13

 Wall Street did a bit of a U-turn yesterday and thank goodness it did. We don't know exactly what it's going to do today. But we're waiting to see. And that's coming up for us in just about 29 minutes from now. But the Dow closed up 429 points yesterday. However, that was a reversal of fortunes from Monday's loss of 634 points.  

 

Christine Romans in New York for us. Alison Kosik at the New York Stock Exchange for us.  

 

Christine, 29 minutes away. What is going to happen?  

 

Well, futures¹ are lower and Alison can tell you more about that. But really you've got a market the day after a prehistoric² Fed decision trying to figure out what it's going to do next, what investors³ are going to do next. They're still weighing the risk of we're just a rut or this is going to be another recession.  

 

The Fed's decision yesterday was to keep interest rates, TJ, low through 2013. Putting a date on it. That was the news. Found weakness in the economy and jobs, housing and spending, and said things were weaker than they had thought even a few months ago, but also said that they have a range of policy tools.  

 

That's code word, key word for we're going to keep rates really, really low but if we have to do something we might be able to do it. We will be able to do it and it's that, you know, one, two, three, four words right there, that was one of the reasons why things really got going on the upside yesterday.  

 

But you got to be careful here because we still have a lot of people talking about how bad it feels in the economy and does this big stock market rout⁴ of the past few days says it set the stage for more weakness in the economy and just how weak will it get.  

 

So I predict treacherous⁵, treacherous politics and treacherous, treacherous markets over the next days and weeks -- TJ.  

 

All right. Alison, you heard her say treacherous markets possibly over the next days and weeks. We're just trying to go day- to-day right now. And on this day, at least, you're keeping your eye on the futures.  

 

Where do we stand possibly when this thing opens in a few minutes?  

 

It looks like we're going to start with losses, TJ. In fact, those losses accelerated just over the past few minutes. The Dow could open down more than 100 points lower. And this, despite that, you know, we're seeing gains that happened overseas.  

 

Take a look. We saw gains in the Asian and European markets up 1 to 2 percent. You know what we're really trying to see what happens, you'll see sort of this high turn if you wind up -- if you wind up getting smaller gains and losses at the close because that would wind up showing that the market is trying to find some equilibrium⁶, some balance. Trying to find its footing.  

 

And you have to admit these price swings are just dizzying that we've seen lately. You know they're huge and they're happening a lot. So we really want to see the market have smaller gains and losses throughout the session and especially at the close of the session.  

 

You look at yesterday. The Dow crossed back and forth⁷ over the break even point. More than 30 times yesterday and analysts⁸ say guess what? We're going to continue to see these big moves in both directions. And despite yesterday's rally, we are still seeing signs of weakness in the economy overall.  

 

Oil plunged⁹ below $80 a barrel yesterday. It's good for our pocketbooks but it's also a sign of a slowing economy. Now it is coming back just a bit today but it is just a relief rally. I'm talking about oil. Now we're also watching yields of 10-year Treasury¹⁰ bonds. TJ, they hit a record low. That's considered a safe haven¹¹. It's good news for us who have mortgages because that's where our mortgage rates are really based on. This is mostly a reaction to the Fed saying it's going to keep interest rates low another two years.

 

In London now. The British Prime Minister David Cameron is vowing¹² to restore order to the streets after young people have gone out for a fourth night of rioting.

 

Our Phil Black is live at London Scotland Yards.

 

Phil, good morning to you.

 

And some pretty strong words from the prime minister.

 

Yes, indeed, very strong words from the prime minister, T.J. He says fight back is now under way and so, he is very keen to show that he is once again in charge of Britain and the British police, once again, ruling the streets. And so, we've had over the last few nights now, more than 700, approaching 800, arrests in London alone. Hundreds more in other cities as well.

 

The prime minister, the government and the police here at Scotland Yard are promising¹³ that is going to continue in two-forms. In the form of a more robust¹⁴ approach to deal with the rioters if they continue with this sort of behavior as they run out of control on the streets. Last night, a surge of around 10,000 more police on the streets of London and the prime minister says that has made a real difference with the relatively¹⁵ calm night here.

 

And on top of that, hundreds of officers are now going through thousands of hours of CCTV video to try to track down the people they say were responsible for this. They say those arrests are already being made -- T.J.

 

Phil, you said a little quieter night there in London, but how much of a concern is it that it has spread to a few other cities outside of London?

 

Yes, it's a good point. The momentum¹⁶ seems to have broken here in London for the moment. But you're right. It has spread to other major cities, including Birmingham, Manchester, Nottingham, among others. We've seen some big scenes of real violence there and hundreds of arrests just overnight.

 

So, the challenge continues if you like, and the British prime minister says that all police battling this, whether it be here in London or in those other cities, will have everything they need to bring it under control.

 

All right. Phil Black for us in Scotland Yard -- Phil, appreciate you as always. Thanks so much

1 futures   

n.期货，期货交易

参考例句：

• He continued his operations in cotton futures.他继续进行棉花期货交易。
• Cotton futures are selling at high prices.棉花期货交易的卖价是很高的。

2 prehistoric   

adj.（有记载的）历史以前的，史前的，古老的

参考例句：

• They have found prehistoric remains.他们发现了史前遗迹。
• It was rather like an exhibition of prehistoric electronic equipment.这儿倒像是在展览古老的电子设备。

3 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

4 rout   

n.溃退，溃败；v.击溃，打垮

参考例句：

• The enemy was put to rout all along the line.敌人已全线崩溃。
• The people's army put all to rout wherever they went.人民军队所向披靡。

5 treacherous   

adj.不可靠的，有暗藏的危险的；adj.背叛的，背信弃义的

参考例句：

• The surface water made the road treacherous for drivers.路面的积水对驾车者构成危险。
• The frozen snow was treacherous to walk on.在冻雪上行走有潜在危险。

6 equilibrium   

n.平衡，均衡，相称，均势，平静

参考例句：

• Change in the world around us disturbs our inner equilibrium.我们周围世界的变化扰乱了我们内心的平静。
• This is best expressed in the form of an equilibrium constant.这最好用平衡常数的形式来表示。

7 forth   

adv.向前；向外，往外

参考例句：

• The wind moved the trees gently back and forth.风吹得树轻轻地来回摇晃。
• He gave forth a series of works in rapid succession.他很快连续发表了一系列的作品。

8 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

9 plunged   

v.颠簸( plunge的过去式和过去分词 )；暴跌；骤降；突降

参考例句：

• The train derailed and plunged into the river. 火车脱轨栽进了河里。
• She lost her balance and plunged 100 feet to her death. 她没有站稳，从100英尺的高处跌下摔死了。

10 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

11 haven   

n.安全的地方，避难所，庇护所

参考例句：

• It's a real haven at the end of a busy working day.忙碌了一整天后，这真是一个安乐窝。
• The school library is a little haven of peace and quiet.学校的图书馆是一个和平且安静的小避风港。

12 vowing   

起誓，发誓（vow的现在分词形式）

参考例句：

• President Bush is vowing to help Minneapolis rebuild its collapsed bridge. 布什总统承诺将帮助明尼阿波利斯重建坍塌的大桥。
• President Bush is vowing to help Minneapolis rebuild this collapse bridge. 布什总统发誓要帮助明尼阿波利斯重建起这座坍塌的桥梁。

13 promising   

adj.有希望的，有前途的

参考例句：

• The results of the experiments are very promising.实验的结果充满了希望。
• We're trying to bring along one or two promising young swimmers.我们正设法培养出一两名有前途的年轻游泳选手。

14 robust   

adj.强壮的，强健的，粗野的，需要体力的，浓的

参考例句：

• She is too tall and robust.她个子太高，身体太壮。
• China wants to keep growth robust to reduce poverty and avoid job losses,AP commented.美联社评论道，中国希望保持经济强势增长，以减少贫困和失业状况。

15 relatively   

adv.比较...地，相对地

参考例句：

• The rabbit is a relatively recent introduction in Australia.兔子是相对较新引入澳大利亚的物种。
• The operation was relatively painless.手术相对来说不痛。

16 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。