Stocks Extend Rally Ahead of Fed

The stock markets rallied a second straight day, as traders bought stocks
ahead of tomorrow’s predicted Fed rate cut. Traders are looking for yet another
Fed Funds rate cut tomorrow, and expect the recent cuts to significantly bolster
the U.S. economy.

EMC Corporation
(
EMC |
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fell more than 7%, despite reporting a 35%
increase in Q4 net income. EMC also said some revenue expectations fell short (full
story
).

Sherwin-Williams
(
SHW |
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PowerRating)
fell 3% after warning that Q1 results would
probably miss analyst expectations (full
story
).

Countrywide Financial
(
CFC |
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PowerRating)
rallied nearly 7%, despite reporting
Q4 losses of $422 million (full
story
).

American Express
(
AXP |
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Chart |
News |
PowerRating)
rallied nearly 1% despite reporting a 10%
decline in Q4 profits (full
story
).

Gold was basically flat today, hovering near all-time record highs; traders
are expecting a rate cut tomorrow, and seem set to sell gold on the
announcement. Crude oil futures rallied moderately on similar rate cut
expectations.

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Market Snapshot

Dow

96.41 12480.30

NASDAQ

8.15 2358.06

S&P 500

8.42 1362.27

Strongest/Weakest Industry Groups

Strongest Industries

% Change

Weakest Industries

% Change

Telecommunications
+5.81%

Nonmetallic Mineral Mining

-2.44%

Residential Construction

+4.09%
Soft
Drinks

-2.01%

Aluminum

+4.09%
Gold
-1.01%

Economic
News


Durable goods orders rose 5.2%, more than forecast.