MARKET TALK: Stocks May Rally Near-Term After Cut, But...
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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2:14 (Dow Jones) The Fed will cut by half a point and the stock market will
have some sort of positive near-term response, says Prudential's Ralph
Acampora. "After that, I have no evidence that we will have a major rally,
because the rallies after recent rate cuts have been short lived, and in
most cases created lower highs in all the averages," he says. Those rallies
were disappointing, and now he's sensing even more overhead supply of stock.
Nasdaq needs to hold 2000 and the Dow 10400. (TG)
2:00 (Dow Jones) Floor traders cite a "day-trading pattern" in stock
futures, which may break out into a short covering rally. "We tested
resistance at 1240 in the morning, held it, sold off, made new lows, then
held support (at midday) and now we're trading sideways," noted one floor
trader, who expects Sept. S&Ps to rally to 1230-35 in afternoon. (ZHS)
1:49 (Dow Jones) The "Perfect Storm" has hit Ford (F), Morgan Stanley says.
"Industry conditions remain uncertain, in our view. In addition, Ford faces
share pressures, inventory imbalance, quality, productivity and launch
problems and employee morale" issues. Morgan neutral on Ford but estimates
the stock's fair value at $29-32. Ford shares at $25.03, down 15 cents. (GS) |
