Stocks Inch Up After Fed Action

Bad news and lingering doubts about yesterday's cut keep rally tame
By Jonas Oransky,  Newser Staff
Posted Dec 12, 2007 3:29 PM CST
Trader Michael Scagnelli bites his fingernail as he works on the floor of the New York Stock Exchange, Monday, Dec. 10, 2007. Wall Street advanced Monday as expectations for an interest rate cut from...   (Associated Press)
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(Newser) – Stocks gained slightly after the Fed's decision to join four other central banks in pumping cash into the global financial system. Following yesterday's plunge of nearly 300 points after the Fed cut interest rates by only a quarter-point, the Dow gained 41.13 to close at 13,473.90. The Nasdaq was up 18.79 to 2,671.14, while the S&P tacked on 8.95 to close at 1,486.60.

 We've got this new medicine we can try. I think we all can celebrate that.," an analyst told Bloomberg. Bank of America dropped 3.1% after warning of a tough road ahead, and JP Morgan Chase, Wachovia, and BoA all were downgraded by Merrill Lynch. The trade deficit also rose higher than anticipated in October, taking spark out of a morning rally.