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Early Stock Dive Wipes Out Fed-Rate Rally

Dow tumbles by more than 250 points in early trading

By Sam Gale Rosen, Newser Staff

Posted Nov 1, 2007 10:54 AM CDT

(Newser) – Stock fell sharply at the opening today, wiping out yesterday's rally spurred by the Fed's rate cut. The Dow was down by over 250 points in early trading, spurred by several bits of bad news, including an Exxon earnings plunge and a Citigroup downgrade. But the Wall Street Journal speculates that traders also had time to think about why the Fed thought a rate cut was needed. "The market's reflecting nervousness that there's another shoe to drop in the financial sector," says one trader.

Exxon posted a bigger-than-expected 10% drop in third quarter net income, and Credit Suisse said its quarterly net profits dropped 31% after a $1.9 billion writedown on mortgage-securities losses. Citigroup was downgraded to the category of "sector underperformer" by a CIBC World Markets analyst. And oil prices set another record at $96 a barrel.

Federal Reserve Board Chairman Ben Bernanke testifies at the House Financial Services Committee Thursday, September 20, 2007 on Capitol Hill in Washington. (AP Photo/Lauren Victoria Burke) (Associated Press)

Yesterday's rally was wiped out by the dive. ((c) yasmapaz)

The Dow plunged by over 250 in early trading. (AP Photo/Charles Rex Arbogast) (Associated Press)

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Early Stock Dive Wipes Out Fed-Rate Rally

Dow tumbles by more than 250 points in early trading

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Stocks Plummet; Dow Off 362

Rate-cut concerns, and plain old bad news, hit Wall Street hard

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'This is just about fear right now'

Stocks Up on Rate-Cut Hopes

Investors look for grim housing numbers to lead to a cut

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Falling futures mean we're not out of the woods

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Early Stock Dive Wipes Out Fed-Rate Rally

Dow tumbles by more than 250 points in early trading

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OTHER STORIES ON OUR RADAR

stock market • Citigroup • Federal Reserve • ExxonMobil

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Stocks Plummet; Dow Off 362

Rate-cut concerns, and plain old bad news, hit Wall Street hard

Dow Down 700, Hits 4-Year Low

'This is just about fear right now'

Stocks Up on Rate-Cut Hopes

Investors look for grim housing numbers to lead to a cut

Bernanke Stands Pat, Sends Stocks Tumbling

Dow tumbles below 11K

Stock Rally Stutters

Falling futures mean we're not out of the woods

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?