This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Fickle Market Ends Mixed

Updated from 4:15 p.m. EDT

Stocks in the U.S. endured another seesaw trading session Tuesday as questions and concerns about the credit markets and the role of the Federal Reserve continued to swirl.

The Dow Jones Industrial Average lost 30.49 points, or 0.2%, to 13,090.86, and the S&P 500 added 1.57 points, or 0.1%, to 1447.12. The Nasdaq was better by 12.71 points, or 0.5%, at 2521.30.

New York's major averages rose to their short-lived session highs at midday after Senate Banking Committee Chairman Christopher Dodd (D., Conn.) said Fed Chairman Ben Bernanke will take advantage of all the means he has to stabilize the markets.

He made his comments following a meeting with Bernanke and Treasury Secretary Henry Paulson. Some traders took that to mean a reduction in the fed funds target rate from the 5.25% level, where it has been for more than a year, could be on the horizon. Futures contracts indicate traders are uniformly expecting a cut in the near future.

Those hopes were stoked last week when the Fed unexpectedly lowered the discount rate, the rate it charges on loans to banks, by 50 basis points. The fed funds rate is the interest banks charge each other on overnight loans. Dodd said he didn't ask Bernanke to cut the fed funds target.

However, the move up was quickly halted by Richmond Fed President Jeffrey Lacker. Speaking in Charlotte, N.C., Lacker, who has a reputation for hawkish views, said the recent volatility wasn't necessarily a reason for a rate cut and that there is still room to be worried about inflation.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AEO $14.97 0.00%
COF $78.71 0.00%
HOV $3.74 0.00%
SPLS $16.76 0.00%
TGT $76.83 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs