Portfolio Crafter
12-11-2007, 10:30 AM
End of Day Market Summary - Monday, December 10, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
It was a day of gains for the market. The Dow rose 101.45 to close at 13,727.03. Also, the Nasdaq gained 12.79 points to close at 2,718.95. The S&P closed at 1,515.96 after rising 11.30 points. The rally in the market we saw today was influenced by bets from investors for a cut in interest rates tomorrow.
Today's rally in the market has different interpretations. Analyst Karen Finerman believes that the market keeps rallying off the same news of a Fed rate cut. Mrs. Finerman thinks that the rate cut is already in the market. Other analysts believe that rally in the market today was due to stronger-than-expected pending home sales report, which would show the housing crisis is not as terrible as investors may think.. Some analysts also think that the Fed may cut the Fed funds rate by a quarter point and it will cut the discount rate by half a point. But, the Fed funds rate is the most watched by investors right now because it has a direct impact on how much interest consumers pay on credit card borrowings, home equity lines of credit, as well as car loans.
Nevertheless, right after the close today, mortgage lender Washington Mutual announced that it was cutting its dividends and approximately 3,000 jobs due to the housing and credit market. In corporate news, UBS issued a profit warning saying that it will write down about $10 billion related to the credit market crisis. The company UBS also announced that it will borrow about $11.5 billion from outside investors
Tomorrow's Fed meeting is expected to cut the fed funds rate by a quarter-percentage point or 0.25 percent to 4.25 percent. The Fed has also cut rates in the last two meetings. Nevertheless, many investors are hoping that the Fed will cut a half-percentage point, but such bets were diminished after negative results from November job reports. The cut of interest rate impacts consumer borrowing costs. In other words, it loosens up the credit market and tries to keep the economy out of recession. Analysts think that we might see a lot of selling after news from the Fed are released on Tuesday.
It looks like the writer's strike in Hollywood is not near an end. According to people familiar with the subject, if the strike continues through the winter, television programming will begin to feel the negative effects for the first quarter of 2008.
Among stocks winners, shares of McDonnalds rose 8.2 percent, after a report for Novermber sales showed that sales rose above estimates this quarter. Also, MGI pharma rallied nearly 20 percent after company accepted to be acquired by Japanese company Eisai for about $3.9 billion in cash.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
It was a day of gains for the market. The Dow rose 101.45 to close at 13,727.03. Also, the Nasdaq gained 12.79 points to close at 2,718.95. The S&P closed at 1,515.96 after rising 11.30 points. The rally in the market we saw today was influenced by bets from investors for a cut in interest rates tomorrow.
Today's rally in the market has different interpretations. Analyst Karen Finerman believes that the market keeps rallying off the same news of a Fed rate cut. Mrs. Finerman thinks that the rate cut is already in the market. Other analysts believe that rally in the market today was due to stronger-than-expected pending home sales report, which would show the housing crisis is not as terrible as investors may think.. Some analysts also think that the Fed may cut the Fed funds rate by a quarter point and it will cut the discount rate by half a point. But, the Fed funds rate is the most watched by investors right now because it has a direct impact on how much interest consumers pay on credit card borrowings, home equity lines of credit, as well as car loans.
Nevertheless, right after the close today, mortgage lender Washington Mutual announced that it was cutting its dividends and approximately 3,000 jobs due to the housing and credit market. In corporate news, UBS issued a profit warning saying that it will write down about $10 billion related to the credit market crisis. The company UBS also announced that it will borrow about $11.5 billion from outside investors
Tomorrow's Fed meeting is expected to cut the fed funds rate by a quarter-percentage point or 0.25 percent to 4.25 percent. The Fed has also cut rates in the last two meetings. Nevertheless, many investors are hoping that the Fed will cut a half-percentage point, but such bets were diminished after negative results from November job reports. The cut of interest rate impacts consumer borrowing costs. In other words, it loosens up the credit market and tries to keep the economy out of recession. Analysts think that we might see a lot of selling after news from the Fed are released on Tuesday.
It looks like the writer's strike in Hollywood is not near an end. According to people familiar with the subject, if the strike continues through the winter, television programming will begin to feel the negative effects for the first quarter of 2008.
Among stocks winners, shares of McDonnalds rose 8.2 percent, after a report for Novermber sales showed that sales rose above estimates this quarter. Also, MGI pharma rallied nearly 20 percent after company accepted to be acquired by Japanese company Eisai for about $3.9 billion in cash.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
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