This morning was exciting in the markets. Early in pre-trading, the Dow was down over 500. Then the FED cut their interest rate by 75 basis points which brought back buyers. 200 points were immediately shaved off the loss, now Dow is down "only" 156 while NAZ is down 53 (over 2%). Decliners lead advancers 2-1 with over 1000 stocks setting 52 week lows (not surprising all considered). Banks are strong on the rate news, up 1-2% but maybe not that strong considering the size of the rate cut. The 10 year Treasury rallied on all this uncertainty with a yield of 3.55%.
Bank of America (BAC ) & Wachovia (WB), Ambac (ABK) & Johnson & Johnson (JNJ) reported earnings, only JNJ is down. More earnings reports are coming. By tomorrow, the rate will be fading into memory, new earnings reports will move the market. Expect a very bumpy ride ahead in the stock market.
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