Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Recap: Another FOMC Surprise

By

The FOMC had another surprise in store.

PrintPRINT
The markets pushed into the green in the last minutes of the trading session. The Dow Industrials added +41 points, or +0.31% to 13473, the S&P 500 added +8 points, or +0.61% to 1486, and the Nasdaq Composite closed up +18 points, or +0.71% to 2671.

Prior to the opening bell, stocks received a large boost after the Fed announced a joint effort by the world's central banks. S&P futures jumped to +2.09%, or 30 points this morning as the Federal Reserve announced that it would provide up to $24 bln available to the European Central Bank and Swiss National Bank to increase the supply of dollars in Europe. The Fed also planned four actions, including two this month, to add as much as $40 bln in an effort to increase liquidity in the U.S. For more, Read Professor Depew's Five Things You Need To Know. Also read Profesor Greg Weldon's FOMC Questions and Answers.

The actions sparked numerous commentaries here at the 'Ville with many professors skeptical of the plan. Mr. Practical said "the plan… has relatively small numbers attached to it. It is basically an emotional ploy to cajole the markets. It has no substantial difference from banks that currently can borrow at the discount window in scope."

Minyan Andreas warned readers of the move as well, "This morning's global coordinated action by central banks to accept virtually any collateral makes them the de facto Lenders of last Resort. To my mind there is no other LoLR. If this action fails --- it fails hard."

Although the sentiment gradually faded away with the Dow Industrials slipping as much as 100 points into the red late in the trading session, last minute buyers stepped in to bring stocks back into positive territory. Technology shares performed well. Research in Motion (RIMM) added +2.71%, Apple (AAPL) added +1.5%, Cisco (CSCO) +3.2%, and Baidu (BIDU) finished +2.9%.

Financials stocks ended mixed even though they started the morning very strong. The Philadelphia Bank Index (BKX) fell -1.78%. Wachovia (WB) fell -3.3%. Fannie Mae (FNM) and Freddie Mac (FRE) fell -6.3% and -2.8% respectively. Bank of America (BAC) shares fell -2.7% after the stated quarterly results were disappointing and warned that further writedowns were "unknowable." For more, read Toddo's Random Thoughts.

In commodities, crude oil surged after weekly crude inventories showed a draw of 722,000 barrels. Crude settled +3.68 to 93.70. Professor Adam Michael mentioned a false break down on the Buzz last week and added that we may see $100 by New Year's. For more of the longer term secular themes regarding the price of crude, read his article written earlier this week, Trends Affecting Oil Price.

Gold futures added +1.70 to 818.80, silver lost -0.04 to 14.82, and copper fell -5.40 to 303.60.

For more summaries, click on Minyanville's Buzz Bits.

Idea Flow

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: MCHP, PKX, AKAM, FRPT, AATI, OSPS, JAVA, PBR, SU, NTDOY, DIS, C, AXP, RVBD, LAZ, LEH, BZP, TXCO, CCI, BTU

Some bearish trade or investment ideas: BAC, SIGM, MA, HBC, BKX, IFN

Y'all have a great night now! See ya in the mornin'.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE