Wall Street Cautious Early Monday after Friday’s Surge
After the Federal Reserve’s move last week to step in as a lender of last resort and implication that an interest rate cut would be forthcoming, stocks continue to trade slightly higher early Monday morning but with caution.
"The market is taking some baby steps, trying to build on Friday's rally. We're digesting the Fed's move last week and putting things into perspective," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research in Cincinnati.
The Fed turned near-panicky financial markets around on Friday by cutting 50 basis points off the primary discount rate at which banks borrow from the U.S. central bank. This now stands at 5.75 percent. The move was designed both to push liquidity into a drying up banking system and to calm market jitters.
Published on August 20, 2007
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