Fed has a new plan to help major financials, big banks & investment banks. They will provide $200B in Treasury securities so there will be an ample supply of treasury securities. This is a bit technical for ordinary investors to digest but banks rallied big out of the gate gaining 4%. Now they're pulling back after investors got a chance to think about it. Bank of America (BAC) a new member of the Dow, was up almost $2 but has sold off so it's only up 61¢ presently. Dow is up 150, advancers over decliners 4-1 & NAZ is up 29.
Back to ordinary news, gas prices inched up to a record level $3.23 & are poised to go higher. The price of oil got within a hair's breath of 110. The US trade deficit widen in Jan to $58 as the weak dollar benefits exports but we continue to import a lot of gas.
Enthusiasm following the FED's announcement will diminish going forward. The steady stream of negative news reports on the economy should keep taking it's toll.
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