Equity markets ended higher on Monday on follow through from Friday’s rally and ahead of the FOMC rate decision on Wednesday. Oil topped $93/bbl early in the day, after Mexico shut a fifth of its production and the dollar fell to a record low. Merrill Lynch (MER) said Chairman and CEO Stan O'Neal announced he is retiring from the firm, one week after the brokerage said it lost $8 billion in the third quarter due to bad mortgage debt. Managed care company Humana (HUM) posted an increase in net income, toping estimates, boosted its 2007 earnings forecast, and guided 2008 above expectations. The DJIA added 0.46%, while the Nasdaq rose 0.47%.

Stocks ended lower on Tuesday as investors held back ahead of an expected interest rate cut from the Federal Reserve. In economic news, the Consumer Confidence reading for October fell to 95.6, compared to the consensus expectation of 99.0. In corporate news, Procter & Gamble (PG) reported higher quarterly earnings that edged expectations, but issued a current quarter outlook that disappointed some investors, sending the stock down 4.01%. ON Semiconductor (ONNN) shares slumped 16.16% after the company reported lower third quarter earnings that missed estimates and gave a fourth quarter revenue forecast that is below analysts' estimates. The DJIA lost 0.56%, while the Nasdaq dropped 0.03%.

Stocks moved higher on Wednesday after the Fed delivered its quarter-point rate cut, but the move placed additional pressure on the weakened dollar. In economic news, annualized gross domestic product came in at 3.8% versus consensus of 3.1%. Personal consumption was reported at 3.0% versus the Street at 3.2%. Construction spending rose 0.3% in September versus consensus of a 0.5% decline. In corporate news, Hess Corp (HES) rose 4.14% after the company reported third quarter EPS of $1.33, excluding one-time items, on revenue of $7.45 billion versus consensus of $1.36 and $9 billion, respectively. MasterCard (MA) rose 20.62% after the company reported third quarter EPS of $1.80, excluding one-time items, on revenue of $1.08 billion versus consensus of $1.42 and $1.03 billion. The DJIA gained 1.00%, while the Nasdaq added 1.51%.

The Dow Industrials suffered one of its biggest declines of the year Thursday falling more than 360 points on renewed fears that the credit crisis is not over. In economic news, weekly jobless claims for the week ended October 27 fell 6,000, to 327,000. Wall Street was expecting a reading of 330,000. September Personal Income rose 0.4%, in line with expectations, while Personal Spending rose 0.3%, slightly below the 0.4% consensus estimate. In corporate news, Credit Suisse (CS) reported a 31% drop in profits, hurt by the U.S. housing market and weakened demand for buyout loans. Sprint Nextel (S) reported a steep drop in profits, hurt by its wireless business. The DJIA lost 2.60%, while the Nasdaq dropped 2.25%.

Stocks continued to seesaw on Friday as Wall Street weighed more troubling news from the financial sector and a better-than-expected employment report. In economic news, Factory Orders rose 0.2%, beating the 0.7% drop predicted. In corporate news, Chevron (CVX) said its quarterly earnings tumbled 26%, due to tighter refining margins. Media conglomerate Viacom (VIAB) booked better-than-expected results, helped by the sale of its music publishing business, sending shares up 2.9%. The DJIA added 0.20%, while the Nasdaq rose 0.56%.

Equity markets finished the week mixed, as the Fed delivered a quarter-point rate cut that placed additional pressure on the weakened dollar and did little to improve the current credit crisis. For the week, the DJIA and S&P lost 1.53% and 1.67%, respectively, while the Nasdaq gained 0.22%.