Sell the News

There's an old saying on Wall Street: "Buy the rumor, sell the news". They seem to be really taking that one to heart this afternoon. The Fed cut the Fed Funds and Discount rates by 25 basis points and pleased exactly no one. A consensus had formed around the idea that the Fed would cut the Funds rate by 25 and the discount rate by 50 basis points due to the continued turmoil in the credit markets. Since it didn't get what it wanted, the market is throwing a bit of a tantrum - down about 220 on the Dow right now. It'll be interesting to see if things can recover a bit before the close.