Surprisingly strong housing report is one factor as U.S. markets rise for 5th time in 6 sessions.
Fed plans to buy 300 Billion in Tres., start TALF and BUY mortgage back securities.
Wall Street rallied at the end of a choppy session Friday as investors pushed the stock market's gains to four days in a row - its best stretch since late November.
Stocks continue their advance as investors react to better-than-expected retail sales and GE downgrade.
Breaking News: Stocks Soar on Bank Rally.CITI, Barclays, and BAC all report positive earnings. Stocks: Biggest gains of '09 The Dow gains 379 points, Nasdaq surges 7% and S&P 500 rallies 6.4% on Citigroup and possible limit on short selling.
Geithner's Financial Rescue Plan outline. Lack of details and uncertainty caused 4.62% decline.
A Historic day saw the Fed slash the key federal funds target rate to between 0.00% and 0.25% driving the markets to an almost 350 point gain and leading a rally for financial. With the fed basically putting the cost of capital at 0 banks are taking advantage."The cut in the federal funds rate pushes it to its lowest level on records dating to July 1954, and the central bank said it would likely keep it at "exceptionally low levels for some time."
In the largest single-day gain in the U.S. stock market since the 1930s, the DJIA gained 11%, reversing some of the losses of the previous week. The market responded to news that the U.S. government would invest $250 billion and take an ownership stake in a wide range of American banks.
While the $700B government bailout plan was initially met with optimism, it has not stemmed the tide of falling stock prices. The issue seems to be a ripple effect of the U.S. market turmoil on global markets - in the aftermath of the U.S. government's announcement, other national governments such as Great Britain and Germany announced similar plans for intervention. Rather than pointing to a quick rebound, signs are pointing instead towards global recession in coming quarters.
The House of Representatives rejected a $700B bailout plan for the recent collapse of the finance and banking industry. The Dow lost 777 points.
A pair of interventions by the federal goverment raised investor confidence in the market and impacted the Dow Jones postively. The first was the announcement that the federal goverment would loan $85 billion to save insurer AIG at the LIBOR rate plus 8.5 points; the second was speculation that Secretary of the Treasury Henry Paulson would lead a bailout plan in which the federal government would purchase hundreds of billions of dollars in distressed assets like mortgage-backed securities, saving financial firms from massive writedowns and possible insolvency.
WTC attacked by terrorist.
Dow Jones Industrial Average (DJIA) dropped by 508 points to 1739 (22.6%).
