Stocks rallied in early trading Tuesday as investors, relieved by better-than-expected results from Lehman Brothers and Goldman Sachs, also anticipated a massive interest rate cut from the Federal Reserve. The Dow Jones industrial average surged more than 200 points.
A rate cut from the Fed in the afternoon would come just two days after the central bank backed JPMorgan's buy of Bear Stearns Cos., and loosened up its own lending practices
Though the stock market wants more details about the souring mortgage-related bets on investment banks' books, its tone Tuesday was significantly more upbeat than it has been in recent days.
Two rivals of Bear Stearns -- Lehman Brothers Inc. and Goldman Sachs Group Inc. -- both posted quarterly profits that were significantly lower than they were a year ago, but higher than analysts had anticipated.
Market at 7:30PM IST
Dow 12,188.07 +215.82 +1.80%
Nasdaq 2,219.53 +42.52 +1.95%
S&P 500 1,303.87 +27.27 +2.14%
No comments:
Post a Comment