The Fed's statement sparked a big Wall Street rally yesterday that sent investors on a shopping spree in world equities markets. The Nikkei rose 1.5%, up with the rest of Asia, and European stock markets are higher. But the U.S. market does not appear ready to carry on the big move for a second day and is now looking like it will open fairly flat as of now.
After living through all that volatility of recent weeks, it's hard to believe that some of the major stock market indexes stand just where they were at Jan. 1. The Dow , after staging its biggest one day gain of the year yesterday, is just 0.1% away from its Dec. 31 close. The S&P 500 is up 1.2% for the year, and Nasdaq is up 2%. Oil is on the move again and trades higher, close to $61 a barrel today.
Bad news from Motorola yesterday is pressuring stocks this morning. The company dramatically lowered earnings guidance, announced an executive reshuffle and said it would buy back stock at a faster clip. The moves echo rumors that circulated Wall Street this week that CEO Ed Zander would take some move to bump the stock price. The rumors missed the earnings blunder and instead of Zander leaving the company, he stayed in and installed a new president and chief operating officer. On a conference call, he dismissed speculation that his job was on the line. We are waiting to hear back from investor Carl Icahn on what he thinks about the moves. We also are awaiting more news from our Jim Goldman on a big Palm shareholder's view that Motorola could be a buyer for Palm .
There will be plenty of opportunity to find blame for the mortgage meltdown. Today Senate Banking hears from some industry executives and will no doubt question the role of regulators. When we asked our viewers who was at fault, they also pointed to the people who took out mortgages they couldn't afford. Meanwhile, our Scott Cohn will report from the field in California on the impact of the mortgage mess there. We also will hear a lot from Fed officials and bankers on the topic today on the state of credit. Our Steve Liesman reports today from Charlotte, NC where the Richmond Fed hosts s symposium on credit markets.
Singing for Starbucks
Paul McCartney is the first artist to sign with Starbucks new label, and in the media world, the Los Angeles Times reports GE's NBC Universal, the parent of CNBC, and News Corp. plan to announce that they are creating an online video site for TV shows and movies.