Aggressive Rate Cut Sparks Rally

The Federal Reserve's aggressive interest rate cut that lowered the federal funds rate to range between zero and 0.25% sparked a rally with the Dow jumping 360 points to 8924.  Nasdaq leaped 82 points to 1590.

On the upside

The Pep Boys (NYSE: PBY) declared a quarterly dividend of $0.0675 per share payable on January 26, 2009 to shareholders of record January 12, 2009.

Beckman Coulter (NYSE: BEC) affirmed its 2008 outlook and forecast earnings to grow 10% per share in 2009 due to expense controls and higher margin sales.

Shares of Hovnanian Enterprises (NYSE: HOV) rose ahead of its earnings release after market close.

On the downside

Smith & Wesson Holding (Nasdaq: SWHC) blamed an impairment charge for its hunting rifle business for swinging to a second quarter loss.

Barclays Capital lowered its price target and cut its fourth quarter outlook as well as 2009 earnings expectations for Bank of America (NYSE: BAC).

Shares of Altria Group (NYSE: MO) fell despite a Court of Appeals rejection of a product liability claim against tobacco companies.

In the broad market, advancing issues outpaced decliners by nearly 6 to 1 on the NYSE and by 7 to 2 on Nasdaq.  The Russell 2000 which tracks small cap stocks surged 30 points to 483.