Today's big news on the stock market is coming in the form of the financial sector, with Visa (V) and Morgan Stanley (MS) leading a financial sector charge. Energy stocks, though, are being left out.
Even though they received a bit of a bump yesterday, at the announcement of the Fed rate cut, Big Oil companies, including Exxon (XOM) and Chevron (CVX), are struggling today on the stock market. Oil prices, which initially rose after the Fed rate cut, are dropping today as well. However, the lower oil prices, which are seen as a result of a dollar rebound due to the latest news on Fanne Mae and Freddie Mac, are not expected to continue. The Guardian reports on the temporary nature of today's dollar rebound:
"These moves that we see in the aftermath of the FOMC statement, the Fannie and Freddie news are really temporary and pullbacks do not imply a sustained dollar rebound," Powell said.
This means that Big Oil stocks could see a rebound if dollar weakness persists, helping to support oil prices above $100 a barrel.
Disclosure: I do not own Big Oil stocks.