Rates Slashed, Stocks Mixed, Oil Soars
The Federal Reserve slashed interest rates 50 basis points today to 1.00%, meeting the consensus forecast figure. Stocks had an unusual reaction to the news, first selling off, then rallying hard, ending mixed across the board. The DJIA staged an impressive rally in the final hour, only to be knocked down -74.16 to 8990.96 below the critical technical support level of 9000. The Nasdaq closed in positive territory adding +7.74 to 1657.21 and the broad based S&P 500 failed to hang on to gains losing -10.42 to 930.09. The slashing of rates launched oil into a substantial rally on the belief that lower rates will spur economic activity hence increase demand for Texan Tea.
Allis Chambers Energy
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General Motors
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Johnson & Johnson
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Sealed Air
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PowerRating) – The bubble wrap maker popped down 22.13% or $4.65 to $16.36/share after failing to meet third quarter estimates due to falling demand.
Oil soared $4.77 to $68.13, gold advanced $13.50 to $754.00 and the fear index VIX jumped up by 4.48% to 69.96
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