Rates Up, Stocks Down

Stocks fell sharply
after the Fed raised interest rates a quarter point to 3.75%–the 11th rise in
15 months.
The Fed said Katrina could fuel inflationary pressures,
saying the economy could face a "near term setback." The Fed hinted that rates 
would continue to rise, as the "measured pace" phrase remained intact. Oil fell
$2, but that did little to stop the selling.

After the close, Christopher & Banks
(
CBK |
Quote |
Chart |
News |
PowerRating)

missed by a penny. CKE Restaurants
(
CKR |
Quote |
Chart |
News |
PowerRating)
beat by 0.09, ex-items. The
stock traded up after hours.

Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating)

beat by 0.87, reporting 3.25/share. Q3 earnings rose 84%.

Circuit City
(
CC |
Quote |
Chart |
News |
PowerRating)
beat by 0.04, beat on revenues and raised fiscal
year 2006 guidance. (full
story
)

Tempur-Pedic
(
TPX |
Quote |
Chart |
News |
PowerRating)
lowered guidance below consensus. Citigroup
downgraded the stock to a Hold from Buy and Goldman Sachs cut it to In Line from
Outperform.



Strong Sectors
were:  Biotech 
(
BTK |
Quote |
Chart |
News |
PowerRating)

+0.60%    



Weak sectors
were:
 
Gold
(
XAU |
Quote |
Chart |
News |
PowerRating)
-2.19%     Retail 
(
RLX |
Quote |
Chart |
News |
PowerRating)

-1.79%    Chemicals
(
CEX |
Quote |
Chart |
News |
PowerRating)
-1.62%


Dow

-76.11
10,481.52


Nasdaq

-13.92 2131.34


S&P 500

-9.68
1221.34

Stocks in the news:

Deutsche Bank started coverage on Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating)
with a Buy.

Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
was upgraded to Outperform at Goldman Sachs.

Swift Transportation
(
SWFT |
Quote |
Chart |
News |
PowerRating)
guided below consensus and said it
will cut the number of stock options granted to employees.

Brice Wightman