Monday August 13, 11:38 am ET
By Lauren Villagran, AP Business Writer
Stocks Move Higher After Banks Add Liquidity, Retail Sales Rise More Than Expected
NEW YORK (AP) -- Wall Street rebounded Monday after the Federal Reserve and other central banks added more cash to their banking systems, helping investors set aside some concerns about credit tightness.Silly me.
The New York Fed, which carries out the central bank's market operation, minutes after the opening bell announced $2 billion in overnight repurchase agreements.
The Fed's "repo" follows a move by the Bank of Japan to put $5 billion into the markets and an addition by the European Central Bank of $65.3 billion; the ECB added more than $200 billion last week. The moves, following similar injections by the Fed last week, appeared to placate Wall Street for now and allowed it to look ahead to a week of fresh economic data. Since Thursday, the Fed has added $62 billion in liquidity.
So far, the central bank moves seem to be calming a market that has been torn by volatility for weeks.
"The environment we're in is really truly extraordinary. The best way for investors to view this is from a 30,000-foot view -- to be positioned defensively and to continue to pay close attention to the U.S. economy and the consumer," said J. Michael Barron, chief executive of Knott Capital in Exton, Pa.
In late morning trading, the Dow Jones industrial average rose 60.40, or 0.4percent, to 13,299.94.
I always thought the Market was supposed to take care of itself? Regulation is a BAAAAD THING! ?Como no?
I guess Govt. intervention isn't ALWAYS such a bad fucking thing, eh, fellas?