An intermeeting interest rate cut by the Fed was all the talk again today.
Last Friday, the major indices got a nice pop in the last hour of trading after
economist and former Fed governor Wayne Angell said there was a 60% chance that the central bank could cut rates again before its March 20 meeting. Now, the latest news is he's saying there's an 80% chance.
Still, analysts and strategists had time to reflect over the weekend and today, they've been out giving reasons why they believe Fed Chairman
Alan Greenspan and his buddies will wait until their scheduled meeting to act.
Investors were clinging to the idea this morning, which raised optimism and brought bargain hunters out to help out some of the many stocks that were battered in last week's action. But that could be the reason for the rally anyway -- that stocks have been so badly beaten, they had no other place to go, but up.
Dow Jones Industrial Average made steady gains this afternoon and ended a very nice rally. The tech-heavy
Nasdaq Composite Index has also been making steady gains this afternoon, after a volatile morning spent crossing and recrossing the flatline.
New York Stock Exchange, mobile phone maker
staged a bit of a recovery. It and others in its industry were butchered last week in a slaughter that helped kill European markets. Today, Nokia was the darling of the Big Board and its European counterparts. Despite having its earnings estimates lowered by
, the stock was up 6.6% to $22.75.
Chip stocks didn't get any help from communications chipmaker
slashed its first-quarter revenue estimates -- again -- this morning.
Dan Niles lowered his forecasts on TI as well as
, citing supply issues that he said likely won't bottom out until the third or fourth quarter. The
Philadelphia Stock Exchange Semiconductor Index
was down 1.4%. Texas Instruments was off 3.3% and Micron was down 6%, but Cypress had lately turned up by 1.2%.
was up 4.9% to $59.50 while an appeals court hears oral arguments from the company in an effort to reverse the trial court's ruling that ordered the company be broken up because of a violation of antitrust laws.
were all being favored by investors today.
Optical storage equipment provider
hit a 52-week low after it made a downward revision to its third quarter, citing excess inventory and a slowdown in the U.S. economy. It was down 14.1% to $4.94.
In other Nasdaq news, reports say unusual trading in
prompted the Nasdaq to cancel some trades and open an investigation into why the semiconductor equipment maker was trading up so high. The stock was 12.6% higher to $11.75.
blue-chip Dow was having a very good day despite
Procter & Gamble's
drag on the index. P&G was getting socked after the company revealed that its second half would be lower, impacted by the Turkish financial crisis. It was down 5.2% to $71.11, taking 26 points from the Dow.
made gains off news that competitor
raising its 2001 projections despite posting earnings that were in line with
lowered estimates. Home Depot was up 9.4% to $43.75. Lowe's was 7.9% higher to $58.91.
Home Depot, IBM,
were among the Dow's biggest contributors. The issues were adding a total of 71 points to the index.
Oil service stocks were on the rise, with the
Philadelphia Stock Exchange Oil Service Index
up 3.3%. Oilfield services giant
was one of the sector's biggest upside contributors. Last week, the stock got an upgrade from Merrill Lynch to intermediate-term buy from accumulate. Merrill said that it was upgrading the stock because it sees "another year of strong outperformance for oil service stocks in 2001." The stock had gotten hit hard in the last month after it announced its $5.2 billion bid for IT company
. It was lately up 7.7%.
Despite an almost across-the-board rally, investors were still seeking shelter in gold. The
Philadelphia Stock Exchange Gold and Silver Index
was rising 6.6% in recent action.
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Treasury prices were up across the yield curve today, representing further expectations for more interest-rate cuts from the
Federal Reserve. There's very little news otherwise, as the market gears up for several pieces of important economic data due later this week.
In recent weeks Treasuries have been firming in response to weakness to stocks, as investors move their money from riskier assets like stocks to safer assets, like Treasury securities. Today, stocks are stronger, so that trade isn't in place today.
Lately, the 10-year Treasury note was up 3/32 to 99 18/32, yielding 5.056%.
Today's only economic release was the January
existing home sales data, which showed a 6.6% decrease on a seasonally adjusted annual basis. The pace of existing home sales fell to 4.65 million in January from a revised 4.98 million rate in December.
Tomorrow the market will get two important pieces of data, the January
durable goods orders and the
Consumer Confidence Index, published by the
. Thursday brings the release of the
National Association of Purchasing Management's
purchasing managers index for February.
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