I know this yahoo.com article isn't about NZ, but it's probably able to affect the rest of the planet
MarketWatch
U.S. stocks sharply lower as investors look to Fed for rate cut
Tuesday October 7, 3:32 pm ET
By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks on Tuesday declined for a fifth session straight, extending a sharp sell-off that has the major indexes trading at or near four-year lows, as investors found little relief in the Federal Reserve's latest steps to ease frozen credit markets.
Equities remained sharply lower as minutes from the Federal Reserve's last formal meeting revealed rate cuts were put on the table at the mid-September gathering, and after Fed Chairman Ben Bernanke in a speech opened the door for a possible interest-rate cut soon. See details.
Earlier, the Fed announced it would buy unsecured commercial paper in an effort to restart a market that has virtually shut down in recent weeks. Read The Fed .
"Despite its scale, the Federal Reserve's massive injection of financial liquidity of late and its announcement of a new facility that will purchase commercial paper is not registering with investors who appear to be clamoring for interest rate cuts instead," said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co.
The Fed step initially propelled the Dow Jones Industrial Average (DJI:^DJI - News) back above the 10,000 level, breached on Monday for the first time since October 2004, but the blue-chip index was more recently off 367.5 points, or 3.7%, to 9,588.
"We have to keep in mind that we rallied about 400 points yesterday from the lows, and we have a 'sell-on-any news mentality.' This particular news from the Fed will help in the short term... to keep yesterday's bottom in place," said Peter Bookvar, equity strategist at Miller Tabak.
And, "how aggressive are you going to be ahead of earnings season?" asks Bookvar. "We have such frayed nerves; people are afraid to jump in no matter what."
Bookvar believes the move by the Fed and other central banks will give the equities market a decent bounce through the end of the year, as the market gives the Fed actions the benefit of the doubt. As he put it, "It's going to be raining money for the next couple of months."
But Bookvar says he is a long-term bear for what he calls the obvious reasons: "The systemic financial collapse risk is almost over, but phase two of the unwind is a nasty economic and earnings recession."
Financials falter
Of the Dow's 30 components, all but one posted losses, with the Dow's biggest laggard proving to be Bank of America Corp. (NYSE:BAC - News) , down 21.6% after reporting a 68% profit fall, slashing its dividend and saying it will raise up to $10 billion in common stock . Read more.
The S&P 500 lost 41.28 points to 1,015.61, with financial and consumer discretionary shares fronting sector losses that by late afternoon stretched to include all 10 of the S&P's industry groups.
Among the financial-sector stocks weighing most heavily on the S&P, General Growth Properties Inc. (NYSE:GGP - News) fell 48.5%. The Chicago-based owner of 200 malls nationwide on Monday suspended its common stock dividend and announced the departure of its chief financial officer.
Also weighing on the S&P, Apartment Investment and Management Co. (NYSE:AIV - News) fell 22.7%. The Denver-based company is among the nation's largest owners of apartment complexes and recently said it expects to take a $3 million to $6 million hit in the third quarter due to hurricane damage to its properties.
Shares of Morgan Stanley (NYSE:MS - News) fell 24.7% amid speculation its deal to raise $9 billion from Japan's Mitsubishi UFJ Financial Group Inc. might be derailed. Morgan Stanley refuted the talk in published reports. Read more .
Citi Investment research on Tuesday said it has reduced its year-end target for the broad S&P 500 index, citing the impact of the "viral spread" of credit problems.
Citi strategists now expect the S&P 500 index to reach 1,200 by year, compared with their previous expectations for the broad index to reach 1,475.
The Nasdaq Composite (COMP - News) fell 76.59 points to 1,786.18, with shares of Google Inc. (NasdaqGS:GOOG - News) hitting the $350 mark for the first time in two-and-a-half years. Read Tech Stocks .
Volume on the New York Stock Exchange topped 1.1 billion, with four stocks on the decline for every stock on the rise. On the Nasdaq, 959 million shares exchanged hands, and decliners outpaced advancers nearly 3 to 1.
Central bank moves
A surprisingly large rate cut from Australia on Tuesday reignited hopes for coordinated measures by central banks other than Sydney. The Federal Reserve announced a fresh dollar auction with overseas counterparts, but no rate cut. See details .
The Bank of England is expected to cut rates on Thursday, while the Bank of Japan opted to keep rates on hold.
Both Federal Reserve Chairman Ben Bernanke and European Central Bank President Jean-Claude Trichet have speeches scheduled, and the Fed is due to release minutes from the last interest-rate setting meeting.
Oil futures added $2.25 to end at $90.06 a barrel Read Futures Movers , and gold futures climbed $6 to $888 an ounce. See Metals Stocks .
After the close, Alcoa Inc. (NYSE:AA - News) will kick off earnings season, with analysts increasingly nervous about the report the aluminum giant will hand in amid dropping metals prices and the global financial crisis. See related story.
In overseas action, Australian shares rebounded to end higher with the move helping other stocks in Asia as well. See Asia Markets .
European stocks were lifted by a sharp rise in Volkswagen shares and the Fed's efforts to help financial markets. Read more .
U.S. and global stocks slumped on Monday, with the Dow falling below the 10,000 mark for the first time since Oct. 26, 2004. Emerging markets were especially slammed, with Russian stocks leading the sell-off. Read Emerging Markets story .
After falling as much as 800 points during the session -- the largest intraday point decline in the index's history -- the Dow industrials ended off 369 points.
MarketWatch
U.S. stocks sharply lower as investors look to Fed for rate cut
Tuesday October 7, 3:32 pm ET
By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks on Tuesday declined for a fifth session straight, extending a sharp sell-off that has the major indexes trading at or near four-year lows, as investors found little relief in the Federal Reserve's latest steps to ease frozen credit markets.
Equities remained sharply lower as minutes from the Federal Reserve's last formal meeting revealed rate cuts were put on the table at the mid-September gathering, and after Fed Chairman Ben Bernanke in a speech opened the door for a possible interest-rate cut soon. See details.
Earlier, the Fed announced it would buy unsecured commercial paper in an effort to restart a market that has virtually shut down in recent weeks. Read The Fed .
"Despite its scale, the Federal Reserve's massive injection of financial liquidity of late and its announcement of a new facility that will purchase commercial paper is not registering with investors who appear to be clamoring for interest rate cuts instead," said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co.
The Fed step initially propelled the Dow Jones Industrial Average (DJI:^DJI - News) back above the 10,000 level, breached on Monday for the first time since October 2004, but the blue-chip index was more recently off 367.5 points, or 3.7%, to 9,588.
"We have to keep in mind that we rallied about 400 points yesterday from the lows, and we have a 'sell-on-any news mentality.' This particular news from the Fed will help in the short term... to keep yesterday's bottom in place," said Peter Bookvar, equity strategist at Miller Tabak.
And, "how aggressive are you going to be ahead of earnings season?" asks Bookvar. "We have such frayed nerves; people are afraid to jump in no matter what."
Bookvar believes the move by the Fed and other central banks will give the equities market a decent bounce through the end of the year, as the market gives the Fed actions the benefit of the doubt. As he put it, "It's going to be raining money for the next couple of months."
But Bookvar says he is a long-term bear for what he calls the obvious reasons: "The systemic financial collapse risk is almost over, but phase two of the unwind is a nasty economic and earnings recession."
Financials falter
Of the Dow's 30 components, all but one posted losses, with the Dow's biggest laggard proving to be Bank of America Corp. (NYSE:BAC - News) , down 21.6% after reporting a 68% profit fall, slashing its dividend and saying it will raise up to $10 billion in common stock . Read more.
The S&P 500 lost 41.28 points to 1,015.61, with financial and consumer discretionary shares fronting sector losses that by late afternoon stretched to include all 10 of the S&P's industry groups.
Among the financial-sector stocks weighing most heavily on the S&P, General Growth Properties Inc. (NYSE:GGP - News) fell 48.5%. The Chicago-based owner of 200 malls nationwide on Monday suspended its common stock dividend and announced the departure of its chief financial officer.
Also weighing on the S&P, Apartment Investment and Management Co. (NYSE:AIV - News) fell 22.7%. The Denver-based company is among the nation's largest owners of apartment complexes and recently said it expects to take a $3 million to $6 million hit in the third quarter due to hurricane damage to its properties.
Shares of Morgan Stanley (NYSE:MS - News) fell 24.7% amid speculation its deal to raise $9 billion from Japan's Mitsubishi UFJ Financial Group Inc. might be derailed. Morgan Stanley refuted the talk in published reports. Read more .
Citi Investment research on Tuesday said it has reduced its year-end target for the broad S&P 500 index, citing the impact of the "viral spread" of credit problems.
Citi strategists now expect the S&P 500 index to reach 1,200 by year, compared with their previous expectations for the broad index to reach 1,475.
The Nasdaq Composite (COMP - News) fell 76.59 points to 1,786.18, with shares of Google Inc. (NasdaqGS:GOOG - News) hitting the $350 mark for the first time in two-and-a-half years. Read Tech Stocks .
Volume on the New York Stock Exchange topped 1.1 billion, with four stocks on the decline for every stock on the rise. On the Nasdaq, 959 million shares exchanged hands, and decliners outpaced advancers nearly 3 to 1.
Central bank moves
A surprisingly large rate cut from Australia on Tuesday reignited hopes for coordinated measures by central banks other than Sydney. The Federal Reserve announced a fresh dollar auction with overseas counterparts, but no rate cut. See details .
The Bank of England is expected to cut rates on Thursday, while the Bank of Japan opted to keep rates on hold.
Both Federal Reserve Chairman Ben Bernanke and European Central Bank President Jean-Claude Trichet have speeches scheduled, and the Fed is due to release minutes from the last interest-rate setting meeting.
Oil futures added $2.25 to end at $90.06 a barrel Read Futures Movers , and gold futures climbed $6 to $888 an ounce. See Metals Stocks .
After the close, Alcoa Inc. (NYSE:AA - News) will kick off earnings season, with analysts increasingly nervous about the report the aluminum giant will hand in amid dropping metals prices and the global financial crisis. See related story.
In overseas action, Australian shares rebounded to end higher with the move helping other stocks in Asia as well. See Asia Markets .
European stocks were lifted by a sharp rise in Volkswagen shares and the Fed's efforts to help financial markets. Read more .
U.S. and global stocks slumped on Monday, with the Dow falling below the 10,000 mark for the first time since Oct. 26, 2004. Emerging markets were especially slammed, with Russian stocks leading the sell-off. Read Emerging Markets story .
After falling as much as 800 points during the session -- the largest intraday point decline in the index's history -- the Dow industrials ended off 369 points.
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