U.S. economy takes ride on wild side

WASHINGTON, March 18 (UPI) -- Financial and commodities markets were in turmoil Tuesday as investors tried to make sense of several moves by the U.S. Federal Reserve Bank.

The Fed bailed out investment bank Bear Stearns Sunday and opened the door for securities banks to borrow from the central bank on the same terms as regulated banks.

The Fed also cut the primary credit rate from 3 1/2 percent to 3 1/4 percent Sunday and is expected to cut lending rates further on Tuesday, perhaps as much as a full point.

U.S. markets reacted with a tentative day Monday as stocks fell early. The Dow Jones industrial index then rose to a small gain, while other major boards fell.

Except for shares in J.P. Morgan Chase and Co., which bought Bear Stearns, financial concerns mostly dropped Monday, The Wall Street Journal reported.

Lehman Brothers, with risky mortgage securities exposure, dropped 19 percent as investors anticipated bad news in the company's coming earnings statement.

Commodities prices also fell abruptly Monday, oil falling more than $4 per barrel Monday.