Monday, January 28, 2008

Solid gains on hope for a rate cut

Today was one of those days you could have thrown darts to pick a winner. Averages were up a good 1% & advancers over decliners almost 4-1. Just about everything was up on the expectation the FED will cut the interest rate tomorrow by at east 50 basis points to 3.00%. McDonalds (MCD) was down 3 on disappointing earnings. After the market closed, American Express (AXP), another Dow stock, fell 1 (after an up day) on their earnings. Quarterly profits fell 10% & they have to set aside money for defaults on their credit cards. Google (GOOG) hosts my site & they had a rough day, down 10 & another 5 after hours. Their earnings will be posted tomorrow & the early bets are not favorable.

Tonight the president gives the state of the union speech, but tomorrow is the big day with the FED meeting. The market has priced in a nice cut. The aftermath can be disappointing as in the past. Housing numbers (the worst in 50 years) today were a reminder that the US economy has a lot of problems.

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