Stocks Fall 189 Despite Rate Cut

Alcoa offers dismal earnings report to start third-quarter season
By Nick McMaster,  Newser Staff
Posted Oct 8, 2008 3:24 PM CDT
Specialist Jennifer Klesaris studies her monitors as she works on the floor of the New York Stock Exchange, Wednesday, Oct. 8, 2008.   (AP Photo/Richard Drew)
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(Newser) – Stocks fell nearly 190 points in a volatile day, with investors showing mixed opinions on whether an unprecedented global rate cut by the Fed and foreign central banks would help the credit crisis. After swinging in a 433-point range, the Dow closed down 189.01 points at 9,258.10, MarketWatch reports. The Nasdaq lost 14.55 points, closing at 1,740.33, and the S&P 500 fell 11.29 points to 984.94.

The coordinated rate cut is a largely symbolic gesture, some traders argued, because the credit crisis has decoupled the link between credit availability and price as firms struggle to evaluate their own complex credit bets. Third-quarter earnings season started on a bleak note as Alcoa halved its profit from a year ago and issued a poor outlook for the next 3 months. Alcoa shares fell 11.79%.