etc etc. Must have been announced before the open of the DOW surely the old inside info again!!
latest news [JCP] J.C. Penney shares up 6.1% at $68.04 METALS STOCKS Gold futures rise sharply as Fed cuts rate By Polya Lesova, MarketWatch Last Update: 10:10 AM ET Aug 17, 2007 PrintPrint EmailE-mail Subscribe to RSSSubscribe to RSS DisableDisable Live Quotes
NEW YORK (MarketWatch) -- Gold futures rose sharply Friday, recovering from their steep losses in the previous session, after the Federal Reserve cut its discount rate to 5.75% from 6.25%, boosting U.S. stocks. "The markets will now digest the nuances of what a cut in the discount rate means and why it was not a full point move to match the fed funds rate," said Jon Nadler, analyst at Kitco Bullion Dealers, in emailed comments. "All eyes will be on the longevity that this adrenaline injection has in various markets," Nadler said. "Investor confidence may not return for a while as the move does not begin to address the structural problems inherent in the credit mess -- the true size of which remains an unknown at this time." Gold for December delivery rallied $13.30, or 2%, at $671.30 an ounce on the New York Mercantile Exchange. Other metals, which had sold off Thursday, also posted strong gains. On Wall Street, U.S. stocks surged at the open. "I don't buy this rally at all," said Zachary Oxman, a senior trader at Wisdom Financial, in emailed comments. "I believe you're seeing a short covering, a temporary bounce." "I think this is a speculative bump and a rookie open and I'd be very surprised to see the market take a rally this large into the weekend, stocks and gold included," Oxman said. Fed cuts discount rate The Federal Reserve said Friday that it's cut the discount rate to 5.75%. The Federal Reserve Board said it was acting to "promote the restoration of orderly conditions in financial markets." In a separate statement, the policy-setting Federal Open Market Committee acknowledged the precarious state of credit markets in making the move. "Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth," the FOMC said. See The Fed. The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from regional Federal Reserve lending facilities. It differs from the key federal funds rate, which is the rate at which private institutions lend to other depository institutions overnight. U.S. stocks rallied, with the Dow Jones Industrial Average ($INDU: Dow Jones Industrial Average News, chart, profile, more Last: 13,052.66+206.88+1.61% 10:13am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: $INDU13,052.66, +206.88, +1.6%) shooting up over 200 points. See Market Snapshot. European shares surged as well in afternoon trading following the Fed cut. "Bottom line for gold and the markets as a whole, a one-day movement to the upside doesn't erase the subprime quagmire that the market is mired in right now," Oxman said. "Look for more downside out of the market as the subprime contagion continues to spread and more surprise announcements from failing hedge funds and banks with big balance sheet problems." "We are still in a global liquidity crisis," Oxman said. On Thursday, gold tumbled $21.70, or 3%, to close at $658 an ounce. Other metals futures also declined sharply, with silver selling off 8%, copper dropping 7% and palladium dropping 6%. Energy futures also declined sharply. Read more. "Short-term the outlook for gold is still quite unclear, with the rise in speculative and investment interest in the metal leaving it vulnerable to further bouts of risk aversion," said James Moore, analyst at TheBullionDesk.com, in a research note. Also on Nymex Friday, September silver rose 43.50 cents, or 3.8%, at $11.930 an ounce. October platinum gained $22, or 1.8%, at $1,252 an ounce and September palladium gained $5.15, or 1.6%, at $333 an ounce. September copper rose 7.40 cents, or 2.4%, at $3.1625 a pound. On the currency markets, the dollar fell against the euro and pound Friday, but maintained its advantage over the yen. The Dollar Index, which tracks the greenback against a basket of the world's major currencies, fell 0.6% at 81.260 Friday. See Currencies. Inventories and indexes Gold warehouse inventories rose 10,139 troy ounces to stand at 7.09 million troy ounces as of late Thursday, according to Nymex data. Silver supplies were unchanged at 134.3 million troy ounces, while copper supplies were unchanged at 21,244 short tons. Indexes tracking mining and metals stocks rose Friday. The Philadelphia Gold and Silver Index (XAU: phlx gold silver index capital-weight News, chart, profile, more Last: 130.71+5.07+4.04% 9:53am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: XAU130.71, +5.07, +4.0%) added rallied 4.3% at 131 points. The CBOE Gold Index (GOX: CBOE Gold Index News, chart, profile, more Last: 131.36+5.06+4.01% 10:13am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: GOX131.36, +5.06, +4.0%) rose 4.6% at 132.09 points and the Amex Gold Bugs Index (HUI: amex gold bugs index equal-$ weight News, chart, profile, more Last: 309.21+9.07+3.02% 10:13am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: HUI309.21, +9.07, +3.0%) gained 3.6% at 310.91 points. As for sector exchange-traded funds, the StreetTracks Gold Trust ETF (GLD: streetTRACKS Gold Shares ETF News, chart, profile, more Last: 65.35+0.67+1.04% 9:53am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: GLD65.35, +0.67, +1.0%) rose 1% at $65.33. The iShares Silver Trust ETF (SLV: ishares silver trust ishares News, chart, profile, more Last: 117.84+0.04+0.03% 9:53am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: SLV117.84, +0.04, +0.0%) edged up 0.1% at $117.90 and the Market Vectors-Gold Miners ETF (GDX: market vectors etf tr gold miner etf News, chart, profile, more Last: 35.55+1.06+3.07% 9:53am 08/17/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: GDX35.55, +1.06, +3.1%) rose 3.5% at $35.69. End of Story
