Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: Greg from Edmonton who wrote (48)	1/5/2001 10:34:26 AM
From: Condor	Respond to of 8273

perhaps this is of more importance than we realize and the Feds picked up on it?? Message 15128800

To: Greg from Edmonton who wrote (48)	1/5/2001 10:38:19 AM
From: parker_meridian	Respond to of 8273

The "second cut" was meaningless. The discount rate is symbolic and is cut on approval of the regional offices. The reserve board had approval for 1/4, and added at the first cut they were ready to move another 1/4 if approved. they polled the regions and announced the "second" cut, which was neither surprising nor meaningful.

To: Greg from Edmonton who wrote (48)	1/5/2001 10:56:58 AM
From: Condor	Read Replies (1) \| Respond to of 8273

Stocks Slump, Led by Financials Jan 5 10:27am ET NEW YORK (Reuters) - Stocks fell in early morning trading on Friday, led by financial shares, as investors worried that the surprise interest-rate cuts by the U.S. Federal Reserve may signal distress in the banking system. The Dow Jones industrial average <.DJI> dropped 115.80 points, or 1.06 percent, to 10,796.61. The broader Standard & Poor's 500 Index <.SPX> dipped 11.50 points, or 0.86 percent, to 1,321.84. The technology-laced Nasdaq Composite Index <.IXIC> lost 63.54 points, or 2.48 percent, at 2,503.29. Bank of America's stock was suspended pending an announcement and caused mounting tension throughout the morning. But the company issued a statement saying: "We know of no basis to support speculative rumors about our operations... The company has not experienced any significant losses in derivatives or other trading activities." The company added it remains comfortable with its guidance for credit quality in 2001 as provided to investors last month. Financial stocks were still weak, with Citigroup and JP Morgan Chase & Co. both lower in heavy trading. Meanwhile, monthly jobs numbers that added to more signs of an economic slowdown before the opening, just two days after the Fed lowered key interest rates in a move that sparked an explosive rally in stocks. "It's hard to make the case that an interest rate cut is to the solution to all problems, it should help consumer sentiment somewhat," said Bill Meehan, chief market analyst at Cantor Fitzgerald & Co. "Right now the concerns are what kind of economy are we looking at, how long will it take for the Fed rate cuts to have an impact.