Sector Watch: Financial Services Companies Slip Following Rate Cut
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.