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CNN Live At Daybreak

Fed Rate Cut Spurred Market, Investors Hope for Same Today

Aired November 07, 2001 - 05:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: The Fed is on its tenth time around of some rate cuts, and we'll see if that does the trick for investors. They certainly seemed to be a little bit happy about that yesterday, and David Haffenreffer is in New York City to tell us more about that -- David, good morning again.

DAVID HAFFENREFFER, CNN FINANCIAL NEWS CORRESPONDENT: I'll tell you, Daryn, even though it was an expected cut by the Federal Reserve yesterday, it did spark a great deal of enthusiasm.

This morning, though, the stock index futures are pointing to a bit of selling here at the opening bell, which comes in a few hours' time today, but investors will be looking to see if they can lock in another day of gains. The Dow posting a triple-digit gain yesterday, following another half percentage point interest rate cut from the Federal Reserve. The Fed citing a deteriorating overseas economy for its tenth cut of the year. This latest cut brings the Fed funds rate down to the lowest level since 1961.

And eight out of the nine members of Hewlett-Packard's board, reaffirming their support of buying rival Compaq Computer. That's despite word from the Hewlett family members that they will vote against the $21 billion merger. We'll certainly be watching shares of Hewlett-Packard today.

Also, some key corporate earnings reports out today: News Corp., Aetna and Waste Management, before the bell. Animation company, Pixar, which created "Monsters, Inc.," reports after the closing bell.

And that is a look at some of the business headlines from New York. I'm David Haffenreffer.

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