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USA stock market daily report by Millenium Traders (October 8, 2008, Wednesday, 10.30 p.m. GMT) 8 October 2008 Source: www.millennium-traders.com
Global Rate Cut coordinated by Central Banks around the world by European Central Bank, the Bank of England, the Swedish Riksbank, the Bank of Canada and the Swiss National Bank joined in cutting their rates with the Federal Reserve by half a percentage point early this morning - Federal Funds Rate cut by 50 basis points to 1.50 percent and discount rate cut by a half a percentage point to 1.75 percent. People's Bank of China cut interest rates this morning as well which accounts for its second interest rate cut in a three week time period. Federal Funds rate has been cut eight times since September 2007. Initial market reaction was a rally of over 100 points during the pre-market session. Prior to the start of the regular market session, gains quickly deteriorated to a heavy triple digit loss, across the board. Sure the rate cut helps lenders but, has little positive effect to the markets. At this point of the serious world-wide financial crisis, calm heads must prevail. Trading activity during the trading session consisted of a constant bounce in and out of negative territory through out the trading session. Trading activity consistent of whip-o-tile type trading action frowned upon by many day traders. Mark-to-market is an accounting method of assigning a value to a position held in a financial instrument based on the current market price for the said instrument or similar instruments. An example: the final value of a futures contract that expires in 9 months will not be known until it expires however if it is marked to market for accounting purposes, it is assigned the value that it would currently bring, in the current open market. Economic data released today: Pending Home Sales: National Association of Realtors released data, U.S. August Pending Home Sales rose 8.8% from August 2007; U.S. Pending Home Sales Index rose 7.4% during August. At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the session on the world market as well as the emerging markets including the stock market closing bell price: DOW (Dow Jones Industrial Average) triple digit loss of 194.26 points on the day to end the trading session at 9,252.85 NYSE (New York Stock Exchange) loss of 82.05 points to end the trading session at 6,306.33 National Association of Securities Dealers Automated Quotations (NASDAQ) loss of 9.01 points to end the trading session at 1,744.01 S&P 500 loss of 11.63 points to end the trading session at 984.60 FTSE All-World excluding U.S. loss of 5.12 points to end the trading session at 163.87 FTSE RAFI 1000 loss of 24.37 points to end the trading session at 3,909.59 BEL 20 (BEL20) triple digit loss of 184.74 points to end the trading session at 2,323.95 CAC 40 (CAC40) triple digit loss of 235.33 points to end the trading session at 3,496.89 FTSE100 (UKX100) triple digit loss of 238.53 points to end the trading session at 4,366.69 NIKKEI 225 (NIK/O) triple digit loss of 952.58 points to end the trading session at 9,203.32 |
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