Stocks Swing Wildly After Global Rate Cuts

Bank of America (BAC Quote) also concluded a common stock offering, raising $9.8 billion after expenses at $22 a share, lower than the stock's Tuesday closing price of $23.77.

The same day, BofA agreed to buy back as much as $4.7 billion in auction-rate securities to settle a lawsuit alleging it misled customers about the safety of the instruments.

After announcing a capital raise the previous day, insurance firm MetLife (MET Quote) announced it was reducing its work force by an unspecified amount as it copes with the tough lending environment.

To kick off earnings season, aluminum processor and Dow component Alcoa(AA Quote) reported a decline in third-quarter profit thanks to rising costs and softening demand.

Bulk retailer Costco (COST Quote) said its fourth-quarter profit rose year over year, but nevertheless fell short of Wall Street estimates.

Discount stores Wal-Mart (WMT Quote) and Costco announced decent September sales figures but fell shy of analyst estimates. Target's (TGT Quote) September revenue decline was wider than the Street had expected.

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

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%.