Stock Market Dismisses Global Rate Cuts

Agricultural products developer Monsanto (MON Quote) posted a narrowed fourth-quarter loss on rising revenues, sending shares higher in early trading.

In autos, Toyota (TM Quote) Senior Managing Director Yoichiro Ichimaru said that his company was facing difficulties selling cars in the U.S. but was not reducing its sales goals.

Meanwhile, domestic automakers Ford (F Quote) and General Motors (GM Quote) suffered a Citigroup downgrade to hold from sell.

Looking at the day's economic data, August pending home sales figures from the National Association of Realtors climbed unexpectedly. The NAR report showed a 7.4% increase in its sales index, which rose to 93.4 from 87 in July. Economists had been anticipating a 1.3% decline in pending home sales.

The International Monetary Fund said in its World Economic Outlook that the U.S. and world economy would slow sharply for the remainder of 2008. The IMF said that the global economy would grow 3.9% in 2008, down from 5% in 2007. For 2009, the Fund forecast even slower growth at 3%.

Weekly oil inventories from the Energy Information Administration showed a larger-than-expected increase in oil reserves. Crude inventories rose by 8.1 million barrels for the week ended Oct. 3, well above analyst expectations.

Over in the commodities arena, crude oil was declining $3.08 to $86.98 a barrel. Gold was advancing $35.50 to $917.50 an ounce.

Longer-dated U.S. Treasuries were declining. The 10-year was down 1-6/32 to yield 3.64%, and the 30-year was off 20/32, yielding 4.06%. The dollar was declining sharply vs. the yen, inching down against the euro and gaining on the pound.

Lately, European indices such as the FTSE in London and the Dax in Frankfurt were lower. Asia fared worse; Japan's Nikkei closed down 9.4%, and Hong Kong's Hang Seng dropped 8.2%.