Market Dips as Eyes Turn to Fed

But yesterday's gain hasn't evaporated yet
By Kevin Spak,  Newser Staff
Posted Oct 29, 2008 8:55 AM CDT
Trader Peter Gasparino works on the floor of the New York Stock Exchange, Monday, Oct. 27, 2008.    (AP Photo/Richard Drew)
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(Newser) – Stocks took a modest dip at the open today, as investors waited for a rate cut decision from the Federal Reserve. The Dow fell 53 points, while the S&P and Nasdaq crept down 0.9% and 1.1% respectively. Investors are expecting a half-point rate cut, bringing the fed funds rater down to 1%, and some believe an even bigger cut is coming, the Wall Street Journal reports.

Others fear the Fed will disappoint, and yesterday’s massive gains will evaporate. “If the cut comes in lower than expected, we could see markets plunge even more,” said one market watcher. In earnings news, Procter & Gamble reported a 9% earnings bump on strong emerging market growth, while Kraft said earnings more than doubled thanks to the sale of the Post cereals brand.