Stock Market News: Rally Underway
Things have been pretty wild on the stock market lately. However, the stock market news today is mostly good. After processing yesterday’s Fed rate cut (in concert with cuts by other central banks), things are looking more positive on Wall Street. Two of the biggest helpers with today’s stock market rally are IBM and AIG.
IBM earnings come in
One of the biggest boons to the stock market today (especially the tech sector) has to do with the earnings report from IBM. IBM reported preliminary earnings, saying that the most recent quarter was more profitable than expected. This has had the effect of calming the tech sector, which many feared would collapse on decreased demand as consumer spending falls due to economic worries.
AIG
Another company that is doing well right now is AIG. The company recently received an $85 billion loan from the government to help it remain solvent. Yesterday, it was announced that AIG has been approved for an additional $37.8 billion loan. This is restoring confidence in the company, since it has become apparent that the government will do anything to ensure the company doesn’t fail — even if AIG executives enjoy a luxury shindig with the loan from the taxpayers.
The move is injecting a small amount of optimism for the financial sector into the market. It could be because investors are breathing a sigh of relief knowing that business as usual is not under threat, or it might be that recent liquidity measures are starting to work their magic and provide confidence in the financial sector. Or it could be both.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
Tags: IBM earnings, stock market news, investing blog, Fed rate cut,
economy, investments, AIG loan
October 10th, 2008 at 1:03 pm
[…] an attempted stock market rally fell to pieces in the afternoon. Today, a feeble attempt to rebound is again falling flat. It is […]