Stocks Begin Holiday Week Mixed

Fed cuts, auto loan offer boost
By Matt Cantor,  Newser User
Posted Dec 22, 2008 9:17 AM CST
Snow collects on the branches of the Christmas tree in front of the New York Stock Exchange.   (AP Photo)
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(Newser) – Stocks opened mixed today after China cut interest rates and Toyota predicted its first loss in 71 years, the Wall Street Journal reports. Toyota’s US shares dropped 3% after its bleak forecast, and General Motors (16%) and Ford (7%) both fell. The Dow ticked up after the bell but was recently down 40 points. The Nasdaq was off about 1.4%, the S&P down about 1%.

China cut its one-year lending rate by 0.27%, to 5.31%, and its deposit rates by the same amount to 2.25% in “part of the ongoing process from governments to stimulate and re-liquefy global economies,” a London analyst told Bloomberg. Investors may grow bolder, seeking year-end deals as the day continues with no economic data to be released.