Stock Open Higher As Banks Add Liquidity

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Stocks Open Higher After Banks Add Liquidity, Retail Sales Rise More Than Expected .


Wall Street opened higher Monday after the Federal Reserve and other central banks added more
cash to their banking systems, helping investors set aside some concerns about credit tightness.

The Fed said minutes after the opening bell that it would add $2 billion in liquidity in a one-day repurchase. That follows a move by the Bank of Japan to put $5 billion
into the markets and an addition by the European Central Bank of $65.3 billion; the ECB added more than $200 billion last week. The moves, following similar injections by the Fed last week, placated
Wall Street for now and allowed it to look ahead to a week of fresh economic data.

Investors appeared pleased with the Commerce Department's report that retail sales edged up 0.3 percent in July, slightly ahead of market expectations. Wall Street has been closely monitoring
consumer spending, as it accounts for two-thirds of total economic activity.

After enduring sharp swings to the downside last week, the Dow Jones industrials and other major
indexes ultimatoldy finished the week with a modest gain. While stocks opened higher Monday, last week's trading showed that which is most predictable about the markets of late is

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DOW 13,299.53  + 59.99 (0.45%)

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The US Federal Reserve injected 2.0 bln usd into financial markets this morning.

Analysts said the smaller-than-expected 2.0 bln usd signals that there is ample liquidity after the 38.0 bln usd injected on Friday.

The Fed has now added 64.0 bln usd of liquidity to the markets over the last three business days.

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Dyna

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