Markets in North America climbed back amongst heavy losses early in the week as the US Fed cut the Discount Interest Rate by half a percentage point. This is the rate at which banks borrow from the Federal Reserve. The news sent stocks flying early Friday and the rally held steady in the late afternoon led overall by the Financials.
Positive earnings and a positive outlook from Hewlett-Packard (NYSE:HPQ), Dell's (NASDAQ:DELL) internal earnings audit completion and general bargain hunting helped technology put the Nasdaq ahead by almost 2.5%. Options Expiration also helped fuel some of the buying as several big tech names hit even strike levels. Whole Foods (WFMI) completed another hurdle in its attempt to acquire Wild Oats (OATS), which in turn made company shares jump 7% and 17% respectively.
Thursday's quick climb from the aftermath of a morning 300+ point Dow drop continued Friday and the major indices almost climbed back to even for the week. The TSX in Canada was also led by financials, but the market saw a 400 point gain close to only 200 by the end of the day. Canadian currency gained strong on the US rate cut news, and the Bank of Canada went back on its plan for a rate hike later this fall. The markets in North America are still in uncertain and turbulent times, however Friday showed that on positive news buyers are there just waiting to jump in.