Market Climbs On Fed Move Made Real

The Federal Reserve raises the rate which banks charge each other by 1/4% in a long-anticipated move. The Fed’s discount rate, or the rate it charges banks for money it lends to them, was unchanged. Translation: whew. The stock market takes the 25 basis point move as a final thank you after debating in fear for over 4 weeks now about what Alan Greenspan and the Fed board would do. Bark worse than bite, as I thought may happen.

The known vs. the unknown. A known 25 basis point increase and the move the Fed made seems to indicate that it’s happy with a small hike with perhaps no other moves until more data can flow in the Fall or later.

The current ISDEX value is 554.15 with a change of+31.88(+6.10%)

  • CMGI (NASDAQ:CMGI) closes a $375 million private placement of Series C convertible preferred. The news follows its agreement to acquire 83% of AltaVista from Compaq.
  • iVillage (NASDAQ:IVIL) agrees to acquire mental health site Online Psych for $25 million cash and stock. Much more consolidation to come in this area I think.
  • Digital Island (NASDAQ:ISLD) goes public June 29 at $10 with 6 million shares sold, went sideways its first trading day, but rises today 51% to $17 15/16 per share. It offers global Internet services for such clients as E*TRADE, Autodesk, Cisco, and National Semi.

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