Fed pumps $500B into money markets; Dow falls 232
CBS
Transcript
The government once again used emergency powers to break through the credit clog. The Federal Reserve is pumping more than $500 billion into money market mutual funds. The idea is to loosen the credit market so banks will be more inclined to lend money. That news wasn't enough to keep the markets from falling. The Dow lost nearly 232 points and the NASDAQ composite fell 73, falling below, 1700. Some bigname businesses revealed quarterly profits. Pharmaceuticals giant Fizer beat Wall Street's estimates. The maker of Viagra and Lipur saw third quarter profits triple from last year. DuPont's earnings were down 30%. The chemical company also lowered its profit forecast for the year and Caterpillar says higher costs caused profits to slip 6% last quarter. The heavy equipment maker is predicting flat sales next year. More cuts at General Motors. Union officials say the company is cutting back overtime for workers at two factories. Poor car sales are forcing GM to trim 10 billion dollars in costs. And more bad news at Ford. A major investor just sold off 7 million shares in the automaker, taking a big loss in the process. On Wall Street, I'm Alexis Christopherus.