Stocks rise on hopes of interest rate cut

Stocks were up on hopes about an interest rate cut. Dow was up 47, advancers beat decliners 2-1 & NAZ was up 8. This FED's meeting will have a major affect on stocks & the feeling on Wall Street is 50 basis points (if not 75) are needed.

The Commerce Dept reported new home sales declined 26% last year to 774M, the worst decline on record! Of course, that was hardly a surprise. McDonalds (MCD), a Dow stock, reported earnings were so-so, down 2.25. They said same store sales in Dec were flat. There is also a feeling that the housing slump is negatively impacting them. Verizon (VZ), another Dow stock, down 0.73, reported a 4% rise in Q4 earnings & said they are not seeing evidence of a slowdown in consumer spending. Corning (GLW), the maker of flat TV screens, reported good earnings & outlook, up 0.82.

The Senate is proposing changes to the president's budget plan. Every special interest group wants changes. Can you spell, "Delay?" The FED's meeting is closer. For the time being, the markets will slosh around trying to guess about the FED's rate cut.