Closing Bell 10.18.07

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This market summary is brought to you by the Financial Times.
If you weren’t paying attention to the market’s today, you could be forgiven for thinking that little happened. The major stock indexes landed about where they ended up at the end of yesterday but took a bumpy ride to get there. The Dow dropped just 3.58 points to close at 13, 888.96. The Nasdaq climbed 6.64 to hit 2799.31. The S&P fell 1.16 to 1540.08. Even the Amex Broker-Dealer Index, which dropped precipitously in the first hour of trading, made a bit of a come-back and closed down just around 1% for the day.
On the New York Stock Exchange rising and falling stocks were almost evenly matched, with 1,605 rising and 1,633 falling. Volume was down from yesterday, with 1.27 billion shares trading hands. On the Nasdaq, decliners outpaced advancers 4 to 3 on volume of 2.03 billion shares.
Treasuries continues to climb today. The four-day rally for US treasuries has re-opened the gap between yields and treasuries. This is the longest rally in treasuries since this summer’s turmoil. The CDX index, which measures prices in the credit default swap market, continued to climb, and is now on pace for the biggest weekly gain since the summer.
U.S. short-term interest rate futures seem to indicate a huge jump in speculators view of the chances of a Fed rate cut. Yesterday the futures showed a 54 percent chance of cut. Today’s showed somewhere near 70 percent.
FT Alphaville. They start their day much earlier than you do.

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