Dow rallies 336 points on interest-rate cut

Beth Gaston Moon — Tue, 18 Sep 2007 17:35:00 EST

Filed under: After the Bell, Major Movement, Good news, Boeing Co (BA), S and P 500, Federal Reserve

Stock futures started the day on a positive note, turning sharply higher in reaction to a wider-than-expected decline in August's producer price index (PPI) number. Despite thin volume during the morning hours, the major indices hovered in the black, awaiting the 2:15 interest-rate decision from Ben Bernanke and the Federal Open Market Committee.

Pleasantly surprising even the doves among us, the rate-setting board made an aggressive rate cut of 50 basis points to 4.75%. And ... they were off. Nearly all market sectors closed in positive territory, led by strong gains from the housing and financial-services groups (areas that have been most adversely affected by the recent credit crunch and subprime woes).

By the time the closing bell sounded, the Dow Jones Industrial Average (DJIA) had gained 336 points - the blue-chip index's biggest single-day jump in almost half a decade. With 29 of its 30 components closing above break-even - Boeing (NYSE: BA) was the lone exception - the Dow settled at 13,739.4, closing above the 13,700 level for the first time since July 25.

Elsewhere, the S&P 500 Index (SPX) tacked on 43 points, or 2.9%, to 1,519.78. Today marked the index's first close above the psychologically significant 1,500 threshold since July 25. And tech stocks weren't left out of the fun ... the Nasdaq Composite (COMP) rallied 70 points, or 2.7%, to 2,651.7, taking out the 2,650 mark for the first time since July 23. All three of the major market averages ended the session at their intraday highs.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Dow rallies 336 points on interest-rate cut originally appeared on BloggingStocks on Tue, 18 Sep 2007 17:35:00 EST. Please see our terms for use of feeds.

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Giving away free coffee: theft or good for business?

Sarah Gilbert — Thu, 07 Dec 2006 18:15:00 EST

Filed under: Consumer Experience, Blogs, Starbucks (SBUX), Employees

While I'm occasionally offered refills at no charge at my local independent coffee shop, I'm never offered free drinks at either that establishment or my local Starbucks Corporation (NADSAQ:SBUX) outlet. (And I'm nice, really I am!) Yet many customers, if a recent thread at Starbucks Gossip is any indication, are. One (must be extremely nice) customer writes in to say that she's comped as much as 2/3 of her drinks.
The post started quite a discussion about free beverages, with one angry district manager writing in to claim that this was theft, and if he were their boss, he'd fire the whole lot of 'em. Some other equally angry and righteous commenters agreed, but the general consensus was that occasional free beverages were good for business -- "Surprise and Delight" 'em, the concept goes, and they'll keep coming back and spending their money in your store. And putting lots of extra bills in your tip jar!

Sure, if a customer is getting most of her drinks free, and putting the $2 in the tip jar instead of the till, that equation is pretty straightforward: sorry guys, that's just a tiny bit of bad ethics there. But a once-a-week freebie for great customers or even (as one barista mentioned) confused out-of-towners? I'm thinking that it will serve to increase business and customer goodwill.

Giving away free coffee: theft or good for business? originally appeared on BloggingStocks on Thu, 07 Dec 2006 18:15:00 EST. Please see our terms for use of feeds.

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