Tuesday, January 22, 2008
daily mkt review Jan 22, 2008
--Traders said the Federal Reserve's decision to cut its key interest-rate target by three-quarters of a percentage point, from 4.25% to 3.5%, before the opening gradually attracted buyers back to the market as Tuesday's session played out. The central bank hasn't made such a large move in more than two decades. --Widening fears of a U.S. recession led to sharp declines in overseas markets prior to Tuesday's opening bell in New York. The losses in Europe and Asia in turn prompted U.S. shares to rack up big losses early Tuesday. --Banks also rose despite poor earnings results from some key players. Bank of America reported a 95% profit fall, KeyCorp unveiled a 80% profit drop and Wachovia posted a 98% profit decline, as loan-loss provisions mounted and the banks wrote down the value of mortgage-related securities.