Fed meeting begins; oil tops $93 a barrel on Mexico storm

CBS News

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[Music] Investors will be keeping an eye on the Federal Reserve today as the central bank kicks off a two-day policy meeting. Wall Street is betting the Fed will cut interest rates again by at least a quarter point to 4.5%. Oil remains in the spotlight after surging to yet another record high Monday. Crude prices topped $93 a barrel on news that Mexico's state oil company suspended production because of a storm in the region. Analysts think oil prices could soon start to ease, saying this recent runup is not supported by typical supply and demand issues, but investors ignored those record oil prices and focused instead on the Fed's impending rate cut. The Dow Industrials rallied 63 points while the Nasdaq Composite climbed 13. Later today, a look at consumer sentiment for October and profit reports from Colgate Palm Olive and Sirius satellite radio. The Supreme Court will review whether Exxon Mobile should have to pay the $2.5 billion in punitive damages for the 1989 Exxon Vald oil spill, which Exxon calls excessive 11 million gallons of oil sound when the super tanker ran a ground. A federal appeals court already cut the original 5 billion in damages in half. The case is expected to be heard this spring. That's your money watch. Log on to cbsnews.com for more business headlines in New York. I'm Alexis Christopherus.

Merrill's O'Neal resigns after $2.2B loss; Dow sinks 77

CBS News

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[Music] after days of speculation the head of wall Street's biggest brokerage firm is out Stan O'Neal is retiring as CEO of Merill Lynch his departure comes just two days after Merill posted a $2.2 billion loss the largest in its history because of its exposure to subprime loans Merl Lynch board member Alberto Kori will serve as interim CEO while the Federal Reserve kicked off at two-day meeting on interest rates today in Washington and analysts expect it to result in another rate cut they're looking for a quarter point reduction to help stimulate the economy the Dow Jones Industrial Average sank 77 points the NASDAQ Composite dipped about a point and Americans are feeling more downbeat about the economy than they have since hurricanes Katrina and Rita battered the Gulf Coast two years ago the consumer confidence index finds Americans are worried about their jobs and the economy you may soon be able to Google on the go Google is set to announce a plan to launch Google powered cell phones it wants to offer its search engine Google Maps YouTube email and more it should hit store shelves by next summer that's your money watch for more business headlines log on to cbsnews.com in New York I'm Alexis christopherus