Stocks Creep Higher at Open

Commercial paper plan breeds cautious optimism
By Kevin Spak,  Newser Staff
Posted Oct 7, 2008 9:02 AM CDT
People leave the New York Stock Exchange after the closing bell, Monday, Oct. 6, 2008.    (AP Photo/Seth Wenig)
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(Newser) – Stocks rose at the opening bell today, buoyed by the Fed’s dramatic promise to intervene in the commercial paper market. The Dow rose 79 points at the open, as the Nasdaq and S&P rose 1.1% and 0.8% respectively, the Wall Street Journal reports. Investors also believe the Fed, ECB, and BoE may join forces for a coordinated, international rate cut.

Amongst individual financials, Bank of America fell more than 11% after announcing that it was cutting its dividend and raising capital. Overseas markets were also stronger today, with Australia’s rate cut lifting Asian stocks and European indexes similarly moved by the Fed’s commercial paper plan. Yesterday overseas weakness led the Dow to its biggest inter-day loss in history, down 800 at one point.