Before The Bell: Emergency Rate Cut; Tech Moves
The Fed announced an emergency rate cut this morning. Read this morning's tech moves. Stock futures are still down.
Bloomberg reports the Federal Reserve announced an emergency rate cut of 75 basis points to 3.5%, its first emergency cut since 2001. The Fed cited deteriorating financial market conditions as reasons for the move. Earlier this morning U.S. stock futures were signaling the largest point decline since April 2000 amid a meltdown in the global equity markets. Asian indexes tumbled a second day with the Nikkei wiping out over two years of growth as investors panic over recession concerns in the U.S. China's Shanghai Composite tumbled 7% last night after falling 5.1% on Monday when the U.S. markets were closed for a holiday. Read Professor Satyajit Das' Are Emerging Markets Free Of US Credit Crunch?
From the Bull Pen: Bulls are looking for an upside bounce in the financial ETF (XLF); sell-stops below $23.50.
From the Bear Cave: Bears may see a downside opportunity in the agricultural ETF (DBA); stops above $37.50.
WSJ reports Ebay (EBAY) CEO Meg Whitman is preparing to hand over the reins of the company. People familiar with the situation say Whitman has been steadily handing over her daily responsibilities to her lieutenants and that the timing of her departure is of her own choosing as she approaches her 10-year anniversary as CEO of the company. John Donahoe, president of Ebay's auction business unit, is the likely candidate to take Whitman's place. Meanwhile, Bloomberg reports Yahoo (YHOO) will likely cut 700 jobs, or 5%, of its workforce. The company will try to cut costs and focus on other areas of the business in a reorganized effort to compete with Internet-search leader Google (GOOG). Read Professor Mike Shedlock's Tipping Point For Tech.
From the Bull Pen: Bulls may play EBAY using this morning's weakness for an upside try; sell-stops below $25.
From the Bear Cave: Yahoo has broken the $20 level this morning, support dating back to 2003. Bears may place buy-stops on the other side.
Click on Minyanville's Spotlight Stocks for more company-specific ideas.
Quick Check Around the World
The tape welcomes us back from an extended weekend and shows us foreign markets trading in the red.
Asian trading closed severely lower with the Hang Seng -8.65%, Nikkei -5.65%, Sensex -4.97%, Taiwan -6.51% and Shanghai -7.22%.
A quick look towards Europe finds the CAC +1.09%, DAX +0.66%, FTSE +1.78%, Swiss Mkt. +1.36% and Stockholm +3.04%.
As of 8:45 AM EST, S&P Futures are lower by 47 points to 1278, and Nasdaq futures are off by 52 points to 1796.
A Look At Commodities
Commodities are lower. Crude oil is off by -2.06 to 88.51. Gold is down -16.60 to 864.50. Silver is down -0.568 to 15.570, and copper is down -13 to 309.45.
The dollar index is down -0.131 to 76.737.
On the Radar
10:00 Richmond Fed Manufacturing Index
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It's a wild one already. Good luck!
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