Ephemeral bounce from rate cut

The markets received a short-lived bump off of news that the Fed made its expected 50 basis point reduction in the federal funds rate, as investors read between the lines that the economy may be weaker than previously expected. The cut - announced at 2:15 EDT - briefly pushed into positive territory all three major indexes: the Dow Jones Industrials, NASDAQ Composite and the S&P 500. But by the closing bell, the DJIA closed down 0.4% and the NASDAQ and the S&P 500 were able only to eke out 0.2% and 0.04% gains, respectively.

Biotech's response to the cut also was muted, as the BioCentury 100 Index closed up 0.1% on the day, with declining stocks leading advances 57-38. But biotech's trading session was absent any significant price swings: Only 10 stocks moved more than $1.50 on the day, with six on the upside and four on the downside. Genentech (DNA) led the price decliners, falling $2.04 to $46; Proteomics company CuraGen (CRGN) fell $1.57 to $30.34; Infectious disease and cancer play MedImmune (MEDI) slipped $1.53 to $34.65; and infectious disease drug developer and drug delivery company Enzon (ENZN) lost $1.51 to $59.90. ...