Stocks on the move
Real-time equity news
U.S. stock market report
1703 ET 18Feb2010 UPDATE 1
Fed hikes discount rate as markets heal
The Federal Reserve said on Thursday it was raising the interest rate it charges banks for emergency loans, its first rate move since December 2008, but insisted borrowing costs for consumers or companies would not rise.
The Fed said the discount rate would be increased to 0.75 percent from 0.50 percent, effective Friday. It left its benchmark interest rate unchanged near zero.
'Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities,' the Fed said in a statement.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1518 ET 18Feb2010-ANALYSIS
U.S. deficit panel faces long odds for success
President Barack Obama's deficit commission will have to pick from a menu of unpleasant options as it comes up with a plan to get the U.S. budget under control. That will be the easy part.
Getting Congress to act on its proposals could be much more difficult.
A toxic political atmosphere and heavy lobbying from outside interest groups will make lawmakers reluctant to sign off on a plan likely to include a mix of tax hikes and spending cuts that could cause them significant political pain, analysts say.
'Both sides need to probably slaughter some sacred cows, and right now I don't think that there's political will on either side -- the well is so poisoned,' said Chris Krueger, an analyst with Concept Capital, which tracks Washington for institutional investors.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1536 ET 18Feb2010-Whitney sees 10-15 pct downside for bank stocks -
CNBC
U.S. bank stocks could decline between 10-15 percent as it dawns on investors that restrained lending would weigh on profitability, influential bank analyst Meredith Whitney told CNBC in an interview on Thursday.
The KBW bank index is up 8 percent year-to-date versus a drop of 0.8 percent for the S&P 500.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1459 ET 18Feb2010
Dow, S&P 500 back to almost positive on YTD basis
U.S. stocks advanced on Thursday, helping major indexes trim losses seen since their Jan. 19 peak further. Both the Dow and the S&P 500 are again back to almost being positive on the year-to-date basis.
The Dow is off 0.4 percent YTD, while the S&P 500 is off 0.7 percent.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Real-time equity news
U.S. stock market report
1703 ET 18Feb2010 UPDATE 1
Fed hikes discount rate as markets heal
The Federal Reserve said on Thursday it was raising the interest rate it charges banks for emergency loans, its first rate move since December 2008, but insisted borrowing costs for consumers or companies would not rise.
The Fed said the discount rate would be increased to 0.75 percent from 0.50 percent, effective Friday. It left its benchmark interest rate unchanged near zero.
'Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities,' the Fed said in a statement.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1518 ET 18Feb2010-ANALYSIS
U.S. deficit panel faces long odds for success
President Barack Obama's deficit commission will have to pick from a menu of unpleasant options as it comes up with a plan to get the U.S. budget under control. That will be the easy part.
Getting Congress to act on its proposals could be much more difficult.
A toxic political atmosphere and heavy lobbying from outside interest groups will make lawmakers reluctant to sign off on a plan likely to include a mix of tax hikes and spending cuts that could cause them significant political pain, analysts say.
'Both sides need to probably slaughter some sacred cows, and right now I don't think that there's political will on either side -- the well is so poisoned,' said Chris Krueger, an analyst with Concept Capital, which tracks Washington for institutional investors.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1536 ET 18Feb2010-Whitney sees 10-15 pct downside for bank stocks -
CNBC
U.S. bank stocks could decline between 10-15 percent as it dawns on investors that restrained lending would weigh on profitability, influential bank analyst Meredith Whitney told CNBC in an interview on Thursday.
The KBW bank index is up 8 percent year-to-date versus a drop of 0.8 percent for the S&P 500.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1459 ET 18Feb2010
Dow, S&P 500 back to almost positive on YTD basis
U.S. stocks advanced on Thursday, helping major indexes trim losses seen since their Jan. 19 peak further. Both the Dow and the S&P 500 are again back to almost being positive on the year-to-date basis.
The Dow is off 0.4 percent YTD, while the S&P 500 is off 0.7 percent.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.