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Description
Stocks ended lower in December as credit concerns continued to weigh on the markets and the U.S. Dollar continued to slump against the Euro. The Fed decided to lower the discount rate by 25 basis points to 4.75%; stocks slumped after the announcement because many had been anticipating a 50 basis point drop. The Fed also lowered the Federal Funds rate by 25 basis points to 4.25%. However, the following day, the Fed joined with four other major central banks to announce a new series of measures to add liquidity to the markets. The Fed said that it would create a new "term auction facility" under which it would lend at least $40 billion and potentially far more, in four upcoming separate auctions.
The Institute of Supply Management's manufacturing index for November came in at 50.8. This matched economists' forecasts. Any reading above 50 indicates economic expansion.
In economic news, the Labor Department... |
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