Stocks Surge as Fed Loans $200B to Ease Credit Crisis
Stocks surged on Tuesday after the Federal Reserve made $200 billions of treasuries available in exchange for mortgage backed securities.
The Dow gained +416.66, the Nasdaq Composite +86.42, and the S&P 500 +47.28.
Financial stocks, which have been devastated by the credit crunch, were the main beneficiaries of the Fed’s move to inject liquidity into the credit markets.
Dow components, Citigroup
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PowerRating) and American Express
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PowerRating) gained more than 9%, while JPMorgan Chase
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PowerRating) rose more than 6%.
Texas Instruments
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PowerRating) was among the few stocks not to participate in today’s rally, after the company lowered Q1 revenue and profit forecasts.
Wellpoint
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PowerRating) plunged more than 28% after missing earnings estimates.
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