An interest rate cut? So that should now be 'old news'. There will be no Fed 'surprise' with any interim interest rate cut whether they do one or not before the next meeting. Bernanke has told us they’re going to cut. Maybe the market should have rallied its typical 300 points Thursday.
The only other surprise yesterday was the rumored buyout of Countrywide (CFC) by Bank of America (NYSE:BAC) in what some are calling “a Fed arranged shotgun wedding.” That rumor followed the previous of two days ago that CFC would file for bankruptcy. BAC would be buying CFC on the cheap (one would imagine) and you’d have to think 'long-term' about its prospects for success. I wonder how they’ll protect Mozillo if at all.
Market internals were ok with breadth positive on the NYSE but still weak on the NASDAQ.
And, as most predicted, the Fed is willing to let the dollar drop and gold rise to save the economy 'if they can'.
Go to part 2 »