Sector Watch: Financial Services Companies Slip Following Rate Cut

By Chris Frankie ,

The

Federal Reserve's decision to cut

short-term interest rates by

25 basis points to 3.75% sent the shares of many banks and financial services companies down from their session highs.

Citigroup

(C) - Get Report

, which was up 1.5% around midday, was off 0.6% to $51.85 on the

New York Stock Exchange

shortly after the Fed's decision was made public at 2:15 p.m. EDT.

Bank of America

(BAC) - Get Report

, which was up earlier in the day, recently slipped 0.4% to $60.15.

American Express

(AXP) - Get Report

was down 1.7% to $38.35 recently.

The Fed's action, while expected by many market watchers, was disappointing to some pros, who had lately been calling for a half-point cut.

Morgan Stanley

(MWD)

lost 1.1% to $63.10, and

J.P. Morgan Chase

(JPM) - Get Report

slid 1.2% to $44.16.

First Union

(FTU)

was off 0.1%, while

FleetBoston

(FBF)

lost 1%.

Bank One

(ONE) - Get Report

gained 1.1% to $35.40.

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