Stocks up but Fed-led rally loses steam

[rodeodance]

Source: (Reuters)



Stocks up but Fed-led rally loses steam

By Jennifer Coogan 6 minutes ago

NEW YORK (Reuters) - Stocks rose on Friday after the Federal Reserve unexpectedly cut the discount rate in a move to keep credit flowing, but market euphoria faded as investors questioned whether the Fed's action would be enough.


World markets had feared that the credit tightening, which began with the U.S. subprime mortgage market, would spread and lead to slower global economic growth.

Before the stock market opened, the U.S. central bank said it cut the discount rate by half a percentage point to 5.75 percent, sending world stock markets sharply higher.

But by midmorning major U.S. stock indexes had cut their gains in about half.

Read more: http://news.yahoo.com/s/nm/20070817/bs_nm/markets_stocks_dc

[OrangeCountyDemocrat]

1. BUT BUT BUT......CRAMER SAID OTHERWISE!!

He was on at 9:30 AM this morning and said that Points wise, this would be the BIGGEST GAIN DAY EVER!! He repeated it twice and confirmed this was going to be the biggest point gain in the history of the Dow.

[Tempest]

2. Same old song and dance

The Fed makes a move (injecting money or lowering the discount rate) and the market gets a dead cat bounce.

They're just making the situation worse by prolonging the agony.

They need to let market forces act on their own, regardless of the consequences.

[nadinbrzezinski]

5. How free market of you

:-)

[Dr.Phool]

3. About 2 hours ago, the Dow was up 350 points.

I made a slice of toast, fed the dogs and sat down at the computer less than 30 minutes later. The Dow was up 150 points (now 137). A 200 point drop in 30 minutes?

That Cramer guy really know his shit, don't he?

[nadinbrzezinski]

4. That's why he's a talking head