NYSE Dow Jones finished today at:

[nioka]

Big dog,

Your posts on this subject get very little comment. I'd just like to thank you for your daily contribution which is much appreciated. I always read it before the ASX opening to get some help in working out the probable direction our market will take. Keep up the good work.

 

[jonojpsg]

Big dog,

Your posts on this subject get very little comment. I'd just like to thank you for your daily contribution which is much appreciated. I always read it before the ASX opening to get some help in working out the probable direction our market will take. Keep up the good work.

Hear hear!

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The NYSE is closed Monday for labor day

For the week, Dow fell 1 percent, the S&P 500 lost 1.18 percent and the Nasdaq fell 3.47 percent. And in August, the Dow rose 1.45 percent, the S&P 500 gained 1.22 percent and the Nasdaq added 1.80 percent.

Wall Street tumbled Friday after the government said personal incomes fell last month by the largest amount in nearly three years while consumer spending slowed. The Dow Jones industrial average more than 170 points, while a disappointing profit report from computer maker Dell Inc. weighed on the technology-heavy Nasdaq composite index.

Meanwhile, investors charted the path of Hurricane Gustav as it heads toward the Gulf of Mexico and its oil rigs and refineries.

Wall Street's retreat following the downbeat news about consumers also comes after several days of sizable gains in stocks and on the final session before the long Labor Day weekend. Pre-holiday trading is generally light and some pullback was to be expected.



The NYSE DOW closed LOWER -171.63 points -1.47% on Friday August 29

Sym Last........ ........Change..........
Dow 11,543.55 -171.63 -1.47%
Nasdaq 2,367.52 -44.12 -1.83%
S&P 500 1,282.83 -17.85 -1.37%
30-yr Bond 4.4120% +0.0230

NYSE Volume 3,313,608,500
Nasdaq Volume 1,611,633,500

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,636.60 +35.40 +0.63%
DAX 6,422.30 +1.76 +0.03%
CAC 40 4,482.60 +21.11 +0.47%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 13,072.87 +304.62 +2.39%
Hang Seng 21,261.89 +289.60 +1.38%
Straits Times 2,739.95 +48.95 +1.82%

http://biz.yahoo.com/ap/080829/wall_street.html
Stocks end lower on personal income data
Friday August 29, 5:44 pm ET
By Tim Paradis, AP Business Writer
Stocks end lower as drop in personal incomes stirs concerns about consumers; Dell hurts techs

NEW YORK (AP) -- Wall Street tumbled Friday after the government said personal incomes fell last month by the largest amount in nearly three years while consumer spending slowed. The Dow Jones industrial average more than 170 points, while a disappointing profit report from computer maker Dell Inc. weighed on the technology-heavy Nasdaq composite index.

Meanwhile, investors charted the path of Hurricane Gustav as it heads toward the Gulf of Mexico and its oil rigs and refineries.

Wall Street's retreat following the downbeat news about consumers also comes after several days of sizable gains in stocks and on the final session before the long Labor Day weekend. Pre-holiday trading is generally light and some pullback was to be expected.

Still, investors were uneasy after the Commerce Department reported that personal incomes fell by 0.7 percent in July -- well beyond the drop of 0.1 percent that analysts polled by Thomson/IFR had predicted.

As expected, the government also said consumer spending rose a modest 0.2 percent. That was below the 0.6 percent increase seen in June and, accounting for rising prices, spending fell by 0.4 percent in July. Wall Street has been concerned about Americans' ability to help the economy grow, as high prices for gas and food have strapped many household budgets.

"My biggest concern with the income data is that we're getting off to a weak start to the third quarter," said Robert Dye, senior economist at PNC Financial Services Group. "The income numbers are a reminder that the economy is going to look worse before it gets better."

The Dow fell 171.63, or 1.47 percent, to 11,543.55. The blue chips began trading Friday having logged a three-day advance of nearly 330 points.

Broader stock indicators also lost ground. The Standard & Poor's 500 index fell 17.85, or 1.37 percent, to 1,282.83. The Nasdaq fell 44.12, or 1.83 percent, to 2,367.52.

The week's trading was again marked by volatility. After tumbling Monday on worries about the credit markets and finishing mixed Tuesday, stocks rose Wednesday and Thursday.

Those moves perhaps belied the quiet surrounding some trading posts. While readings on the overall economy as well as consumer confidence and demand for big-ticket manufactured goods were better than expected, trading was light all week. This prompted some observers to dismiss the market's moves as aberrations.

Declining issues outnumbered advancers Friday by nearly 2 to 1 on the New York Stock Exchange, where volume came to a weak 959.1 million shares compared with 956.2 million shares traded Thursday.

For the week, Dow fell 1 percent, the S&P 500 lost 1.18 percent and the Nasdaq fell 3.47 percent. And in August, the Dow rose 1.45 percent, the S&P 500 gained 1.22 percent and the Nasdaq added 1.80 percent.

Bond prices fell Friday. The 10-year note's yield, which moves opposite its price, rose to 3.83 percent from 3.79 percent late Thursday. The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude fell 13 cents to $115.46 per barrel on the New York Mercantile Exchange. While oil trading has been orderly as Gustav progresses, there is concern about damage from the storm or a disruption in the flow of gasoline and other fuel from Gulf Coast refineries.

Although many investors are fixated on consumers, Wall Street showed little reaction to the Reuters/University of Michigan's index of consumer sentiment, which rose to its highest level in five months. Economists often reason that consumers who are upbeat about their prospects are more likely to spend.

Also, investors shrugged off the Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana. It jumped to 57.9 from 50.8 in July. The index is considered a precursor to the Institute for Supply Management's manufacturing survey on Tuesday. Investors also will be looking next week to readings on the service sector, construction, factory orders and employment.

"Traditionally September is a weak month for stocks and I don't think we're going to escape that," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc., looking to the coming week. "I do think we are going to stay in a trading range. I don't see this market falling out of bed and going below the July lows."

But concerns that arose Friday could remain next week. Investors worried about the tech sector after Dell's report late Thursday and its cautious comments about spending in the sector. The stock fell $3.48, or 14 percent, to $21.73.

Another tech name, Marvell Technology Group Ltd., fell after its third-quarter revenue forecast fell short of Wall Street's estimate. The stock lost 65 cents, or 4.4 percent, to $14.11.

Government-chartered Fannie Mae and Freddie Mac fell anew Friday after big gains earlier in the week. Fannie Mae fell $1.11, or 14 percent, to $6.84, while Freddie Mac fell 77 cents, or 15 percent, to $4.51.

The Russell 2000 index of smaller companies fell 8.29, or 1.11 percent, to 739.50.

In Tokyo, the Nikkei index rose 2.39 percent. In Europe, London's FTSE-100 index rose 0.63 percent, Frankfurt's DAX rose 0.03 percent and the CAC-40 index in Paris rose 0.47 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The NYSE is closed Monday Sept 1 for labor day

Wall Street is set for another volatile week after the Labor Day holiday, as investors track Hurricane Gustav, the price of oil, key economic data and continued fallout from the credit crisis.



Europe
Symbol... Last...... .....Change.......
FTSE 100 5,602.80 -33.80 -0.60%
DAX 6,421.80 -0.50 -0.01%
CAC 40 4,472.13 -10.47 -0.23%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,834.18 -238.69 -1.83%
Hang Seng 20,906.31 -355.58 -1.67%
Straits Times 2,713.79 -26.16 -0.95%

http://biz.yahoo.com/rb/080901/column_stocks_outlook.html?.v=1
More volatility seen with hurricane
Monday September 1, 1:49 pm ET
By Deepa Seetharaman

NEW YORK (Reuters) - Wall Street is set for another volatile week after the Labor Day holiday, as investors track Hurricane Gustav, the price of oil, key economic data and continued fallout from the credit crisis.

Gustav initially came roaring into the Gulf of Mexico threatening to cause the worst devastation since Hurricane Katrina three years ago, but it weakened on Monday before making landfall in Louisiana.

Oil prices plummeted on the news of the less powerful storm in a turn of events that will likely lift U.S. stock indexes when they reopen after the U.S. Labor Day holiday on Tuesday.

"You might actually get some relief in the markets," said Chip Hanlon, president of Delta Global Advisors, Inc, in Huntington Beach, California. "We were bracing for a repeat of Katrina, Category 2 sounds tame in comparison."

Hanlon said retailers and airline stocks may "get a bounce" on Tuesday from lower oil prices, but energy-related stocks may be weak.

Oil fell 4.6 percent and dropped below $111 a barrel in electronic trading on Monday as the threat to U.S. oil production faded. Stock investors are increasingly sensitive to inflation pressures, making the price of oil an important factor in trading.

Investors will also contend with a barrage of economic data this week, notably the August payrolls report due out on Friday and two reports on U.S. factory activity from the Institute for Supply Management.

But the hurricane will be the main focus early in the week. Last week, oil prices surged and retreated on concerns over the storm's path, strength and the readiness of U.S. emergency officials to handle any disruptions.

Gustav "will probably be moving the market one way or the other," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey. "If it fizzles then it will be a big relief on oil prices."

Also driving the market this week are several government economic reports.

This data comes after the U.S. government said gross domestic product grew at a robust 3.3 percent clip between April and June, above initial estimates of 1.9 percent.

But analysts said the strong showing was largely the result of increased exports.

"If you look at GDP, you're led to believe the economy is solid," said Hugh Johnson, chief investment officer of Johnson Illington Advisor in Albany, New York. "But if you look at the variables -- employment, industrial production and personal income -- the economy does not look solid but weak."

On Friday, all three major indexes fell more than 1 percent and all 30 stocks in the Dow industrials finished in the red.

Economic data added to the market's jitters after a government report showed U.S. personal income fell unexpectedly in July while spending slowed as the effects of a government stimulus package wore off.

An inflation measure hit a 17-year high.

The Dow Jones industrial average closed down 171.63 points, or 1.47 percent, at 11,543.55 in Friday's trading. The Standard & Poor's 500 Index was down 17.85 points, or 1.37 percent, at 1,282.83. The Nasdaq Composite Index was down 44.12 points, or 1.83 percent, at 2,367.52.

For the month, though, the Dow added 1.5 percent, while the S&P rose 1.3 percent and the Nasdaq gained 1.8 percent.

The August jobs report from the Bureau of Labor Statistics, is also expected to be weak, with an overall decline in nonfarm payrolls of 85,000 and no change in the unemployment rate of 5.7 percent for August.

In July, U.S. nonfarm payrolls fell for a seventh straight month.

Another month of hefty job losses would reinforce those who argue that the economy remains in poor shape, Johnson said.

Market watchers are also awaiting data on U.S. auto and same-store retail sales for clues about consumer spending in the upcoming holiday season, along with the Federal Reserve's Beige Book.

"The markets are extremely volatile and moving according to macroeconomic news quite a bit," Prudential International Investments' Praveen said. "All of this data has the potential to be moving markets."

Investors will also be tracking new developments among financial companies, particularly beleaguered mortgage giants Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News), and Lehman Brothers Holdings Inc (NYSE:LEH - News), which is shopping its asset management division arm.

Lehman, the fourth-largest U.S. investment bank, is looking for buyers for some $40 billion of commercial mortgages and property on its balance sheet.

Although developments in the race for the White House will not take center stage, analysts said that Wall Street will still be watching the now-abbreviated Republican National Convention this week for long-term market implications.

Investors will particularly focus on Sen. John McCain's tax and energy policies, especially following his selection of Alaska Gov. Sarah Palin as his running mate.

"The markets are not going to be happy with an Obama presidency ... and McCain is not particularly loved by Wall Street either," said George Schwartz, president at Schwartz Investment Counsel in Bloomfield Hills, Michigan.

But with Palin, "conservatives are going to come out roaring in favor," Schwartz said. "It's going to be a positive influence on economic activity."

Schwartz added that the pairing could affect oil prices, especially if Palin and McCain say they strongly support off-shore drilling.

"That premise of additional supplies is going to further take the speculators out of the market and cause them to put downward pressure," he said.

(Additional reporting by Nick Zieminski, Herb Lash and Steve C. Johnson; Editing by Derek Caney and Maureen Bavdek)

(The Stocks Outlook column appears weekly. Comments or questions on this one can be e-mailed to deepa.seetharaman(at)thomsonreuters.com)

 

[bigdog]

YSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street succumbed to its ongoing angst Tuesday, giving up a sharp advance and turning moderately lower after falling oil prices failed to calm the market's nervousness about the economy and the financial sector.

The Dow Jones industrial average initially surged by nearly 250 points as oil prices dropped as low as $105.46 a barrel on reports that the Gulf Coast and its oil facilities were spared heavy damage from Hurricane Gustav. But the positive effect of the storm's outcome on stocks was short-lived, and the blue chips ended the day down 26.

The NYSE DOW closed LOWER -26.63 points -0.23% on Tuesdday September 2

Sym Last........ ........Change..........
Dow 11,516.92 -26.63 -0.23%
Nasdaq 2,349.24 -18.28 -0.77%
S&P 500 1,277.57 -5.26 -0.41%
30-yr Bond 4.3620% -0.0500

NYSE Volume 4,787,815,500
Nasdaq Volume 2,050,814,750

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,620.70 +17.90 +0.32%
DAX 6,518.47 +96.67 +1.51%
CAC 40 4,539.07 +66.94 +1.50%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,609.47 -224.71 -1.75%
Hang Seng 21,042.46 +136.15 +0.65%
Straits Times 2,758.94 +45.15 +1.66%

http://biz.yahoo.com/ap/080902/wall_street.html
Oil's retreat not enough to sustain stock rally
Tuesday September 2, 4:44 pm ET
By Madlen Read, AP Business Writer
Wall Street turns lower as economic, financial worries overtake relief about lower oil prices

NEW YORK (AP) -- Wall Street succumbed to its ongoing angst Tuesday, giving up a sharp advance and turning moderately lower after falling oil prices failed to calm the market's nervousness about the economy and the financial sector.

The Dow Jones industrial average initially surged by nearly 250 points as oil prices dropped as low as $105.46 a barrel on reports that the Gulf Coast and its oil facilities were spared heavy damage from Hurricane Gustav. But the positive effect of the storm's outcome on stocks was short-lived, and the blue chips ended the day down 26.

Falling commodities prices caused the stocks of oil and metals companies to sink, dragging on the broader market, and the technology sector was also weak. Furthermore, crude oil eventually lifted off its lows of the day, settling near $110 a barrel and signaling to some traders that oil has the potential to rebound as quickly as it sold off.

"We could have another storm announced tomorrow, and it'd be back up again," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group.

The financial sector was stronger than usual on Tuesday, but not enough to lift the stock market. Investors remain fearful that a weak housing market and tight credit environment will keep racking up losses for the nation's major money centers.

"The one problem with financials is that maybe the Street has a good handle on subprime, but they do not have a good handle on commercial or industrial lending," said Philip S. Dow, managing director of equity strategy at RBC Wealth Management.

Due to the high level of uncertainty in the market -- not to mention low summer trading volumes, which tend to add to volatility -- investors recently have appeared to be aiming for quick, day-to-day profits as opposed to committing to a long-term strategy, Dow said.

"We've had this manic tape for some time," he said. "By and large, it's just a market that's victim to whatever the news of the day is, without a whole lot of conviction."

According to preliminary calculations, the Dow fell 26.63, or 0.23 percent, to 11,516.92. On Friday, the blue chip index lost 171 points. The biggest drop among the 30 Dow components came from aluminum producer Alcoa Inc., which fell $1.67, or 5.2 percent, to $30.46.

Broader stock indicators also turned lower after moving sharply higher in early trading. The Standard & Poor's 500 index fell 5.25, or 0.41 percent, to 1,277.58, and the technology-dominated Nasdaq composite index fell 18.28, or 0.77 percent, to 2,349.24.

Advancing issues outnumbered decliners, however, by about 8 to 7 on the New York Stock Exchange, where volume came to 1.15 billion shares.

Light, sweet crude fell $5.75 to settle at $109.71 a barrel on the New York Mercantile Exchange.

Bond prices shot higher as Wall Street gave up its gains. The yield on the benchmark 10-year Treasury note, which moves opposite its price, sank to 3.74 percent from 3.82 percent late Friday. The dollar strengthened against most other major currencies, while gold prices fell sharply.

The Institute for Supply Management, a trade group of purchasing executives, said Tuesday its index on manufacturing activity fell marginally to 49.9 in August -- as expected -- from 50 in July. A reading below 50 indicates contraction. The ISM also found that inflation lessened.

Bill Dwyer, chief investment officer at MTB Investment Advisors in Baltimore, said the reactions of the energy and stock markets Tuesday illustrate the overall uncertainty about the economy.

"It just shows you how unstable the market is based on the perception of the macro economic outlook. It changes daily. There isn't a consistent viewpoint of what is actually happening in the economy," he said.

Financials ended mostly higher Tuesday, but trading was erratic; investors remain extremely skittish about financial services companies, given the billions of dollars in risky loans and securities that remain on their books.

Lehman Brothers Holdings Inc. rose but pared larger gains after the governor of the state-owned Korea Development Bank said discussions were under way to set up a consortium with private banks to acquire Lehman. The comments follow weeks of speculation that the investment bank could be bought as it struggles amid tightness in the credit markets.

Lehman shares rose 4 cents to close at $16.13.

A few financial stocks weakened, including Merrill Lynch & Co., which fell 60 cents, or 2.1 percent, to $27.75.

The drop in oil prices sent airline stocks higher. American Airlines parent AMR Corp. jumped $1.17, or 11.3 percent, to $11.50, Delta Air Lines Inc. rose $1.04, or 12.8 percent, to $9.17, while JetBlue Airways Corp. rose 25 cents, or 4.1 percent, to $6.32.

But energy names fell. Exxon Mobil Corp., one of the 30 Dow industrials, fell $2.69, or 3.4 percent, to $77.32, while Chevron Corp., another Dow component, lost $3.03, or 3.5 percent, to $83.29.

Most technology companies declined as well. One of the most actively traded stocks in the Nasdaq composite index was Dell Inc., which on Friday reported disappointing quarterly results and set off a string of estimate cuts by analysts.

Dell shares extended their declines, falling by 90 cents, or 4.1 percent, to $20.83.

The Russell 2000 index of smaller companies fell 0.99, or 0.13 percent, to 738.51.

Overseas, Japan's Nikkei stock fell 1.75 percent. Britain's FTSE 100 rose 0.32 percent, Germany's DAX index rose 1.51 percent, and France's CAC-40 advanced 1.50 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street finished mixed in fickle trading Wednesday, with investors still unsettled about the economy ahead of Friday's employment report and only somewhat relieved about sliding commodities prices.

The Commerce Department gave the market just modest comfort when it said orders for manufactured products rose by 1.3 percent in July. The figure was higher than the 0.8 percent predicted by economists polled by Thomson Financial/IFR; the department also upwardly revised its June reading to an increase of 2.1 percent.

The NYSE DOW closed HIGHER +15.96 points +0.14% on Wednesday September 3

Sym Last........ ........Change..........
Dow 11,532.88 +15.96 +0.14%
Nasdaq 2,333.73 -15.51 -0.66%
S&P 500 1,274.98 -2.59 -0.20%
30-yr Bond 4.3180% -0.0440

NYSE Volume 5,051,334,500
Nasdaq Volume 2,137,763,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,499.70 -121.00 -2.15%
DAX 6,467.49 -50.98 -0.78%
CAC 40 4,447.13 -91.94 -2.03%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,689.59 +80.12 +0.64%
Hang Seng 20,585.06 -457.40 -2.17%
Straits Times 2,706.53 -52.41 -1.90%

http://biz.yahoo.com/ap/080903/wall_street.html
Wall Street mixed on global economic worries
Wednesday September 3, 4:36 pm ET
By Madlen Read, AP Business Writer
Stocks mixed on worries about global economy, despite lower oil and higher US factory orders

NEW YORK (AP) -- Wall Street finished mixed in fickle trading Wednesday, with investors still unsettled about the economy ahead of Friday's employment report and only somewhat relieved about sliding commodities prices.

The Commerce Department gave the market just modest comfort when it said orders for manufactured products rose by 1.3 percent in July. The figure was higher than the 0.8 percent predicted by economists polled by Thomson Financial/IFR; the department also upwardly revised its June reading to an increase of 2.1 percent.

However, many traders shrugged off the report as old news, given that it is now September. With automakers releasing sluggish August sales and the Federal Reserve reporting weak economic activity throughout the nation, the market proceeded cautiously.

A massive pullback in commodities since earlier in the summer has helped alleviate some of Wall Street's inflation worries. Oil briefly slid below $108 a barrel Wednesday as the dollar strengthened and Hurricane Gustav appeared to leave oil installations in the Gulf of Mexico mostly undamaged.

But oil pared its losses to end above $109 a barrel. And investors are realizing that oil has fallen partly because global demand growth is waning -- bad news not only for energy companies, but also for the technology and industrial sectors. On Tuesday, stocks gave up a huge early advance only to close lower, as investors' enthusiasm about oil's selloff gave way to concerns about the economy in the United States and abroad.

"All the data in the last two weeks has actually been very good," said Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., pointing to Wednesday's factory orders data, falling oil prices, and the recent upward revision of second-quarter gross domestic product. "Despite all that, you didn't get a commensurate market performance. And that's troubling."

According to preliminary calculations, the Dow Jones industrial average rose 15.96, or 0.14 percent, to 11,532.88, after rising by as many as 37 points and falling by as many as 100.

Broader stock indicators slipped. The Standard & Poor's 500 index fell 2.60, or 0.20 percent, to 1,274.98, and the Nasdaq composite index fell 15.51, or 0.66 percent, to 2,333.73.

The Russell 2000 index of smaller companies rose 3.40, or 0.46 percent, to 741.91.

Advancing issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where volume came to 1.21 billion shares.

Bond prices moved higher Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.70 percent from 3.74 percent in late trading on Tuesday.

One bright spot in the market Wednesday was the troubled financial sector, which drew some bargain hunters thanks to positive news on a few big names: Ambac Financial Group Inc., Freddie Mac and Lehman Brothers Holdings Inc.

Ambac rose $1.58, or 22.4 percent, to $8.65 after Wisconsin insurance regulators late Tuesday approved the bond insurer's plans for a new insurance subsidiary.

Freddie Mac rose 20 cents, or 3.9 percent, to $5.38, after selling $4 billion in debt this week. The prices at which the company sold the debt indicated that investors' fears about the government-sponsored mortgage finance company, while still high, have eased a bit since last month.

And Lehman Brothers rose 81 cents, or 5 percent, to $16.94 amid ongoing speculation that the investment bank is in talks to sell a 25 percent stake in itself to a Korean bank.

But in general, the outlook for stock market is uncertain, and investors have been hesitant to make any large bets.

Investors were unimpressed with the Federal Reserve's latest snapshot of business conditions released Wednesday, in which businesses described the climate as "weak" or "soft" or "subdued."

The big economic headline of the week for Wall Street is likely to be the Labor Department's reading on August employment. The report is expected to show a drop in payrolls for the eighth straight month and another uptick in the unemployment rate.

The prospect of a worsening job market is worrisome to Wall Street, since many companies dependent on consumer demand have been hurting.

Corning Inc. fell $2.42, or 12.4 percent, to $17.08 after reducing its third-quarter sales and earnings-per-share outlook to reflect slower shipments of glass used in flat-screen televisions and computers.

Light, sweet crude futures fell 36 cents to settle at $109.35 a barrel on the New York Mercantile Exchange. The dollar rose against the euro and pound, but weakened against the yen.

European indexes fell after a European Union report showed falling exports and lower household spending caused the euro economy to shrink by 0.2 percent in the second quarter.

"We went from a weakening dollar, strong growth abroad regime to one that has a strengthening dollar and weak growth abroad," said Brian Gendreau, investment strategist for ING Investment Management. "People are trying to figure out what this means for their portfolios. ... No one really has a comprehensive way of sorting this all out."

Britain's FTSE 100 fell 2.15 percent, Germany's DAX index fell 0.78 percent, and France's CAC-40 lost 2.03 percent.

In Japan, the Nikkei stock index rose 0.64 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Dejected investors sent stocks plunging Thursday, hurtling the Dow Jones industrials down more than 340 points after retailers and the government added to a mountain of bad economic news and devastated hopes for a late-year recovery.

The market was already nervous as it waited for the government to release its August employment report on Friday. So news from the nation's major retailers that shoppers curtailed their spending last month due to higher gas and food prices came as a heavy blow.

The NYSE DOW closed LOWER -344.65 points -2.99% on Thursday September 4

Sym Last........ ........Change..........
Dow 11,188.23 -344.65 -2.99%
Nasdaq 2,259.04 -74.69 -3.20%
S&P 500 1,236.83 -38.15 -2.99%
30-yr Bond 4.2810% -0.0370

NYSE Volume 5,303,813,500
Nasdaq Volume 2,391,126,750

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,362.10 -137.60 -2.50%
DAX 6,279.57 -187.92 -2.91%
CAC 40 4,304.01 -143.12 -3.22%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,557.66 -131.93 -1.04%
Hang Seng 20,412.36 -172.70 -0.84%
Straits Times 2,638.95 -67.58 -2.50%

http://biz.yahoo.com/ap/080904/wall_street.html
Stocks plummet after retail, unemployment data
Thursday September 4, 6:03 pm ET
By Madlen Read, AP Business Writer
Wall Street plunges as retail sales reports, jobless data add to market's gloom about economy

NEW YORK (AP) -- Dejected investors sent stocks plunging Thursday, hurtling the Dow Jones industrials down more than 340 points after retailers and the government added to a mountain of bad economic news and devastated hopes for a late-year recovery.

The market was already nervous as it waited for the government to release its August employment report on Friday. So news from the nation's major retailers that shoppers curtailed their spending last month due to higher gas and food prices came as a heavy blow.

Wal-Mart Stores Inc., the world's largest retailer, beat expectations because of its big discounts, but many teen retailers and luxury chains did poorly, a sign that consumers are spending mostly on essentials and putting discretionary buying on hold.

Meanwhile, the Labor Department said new applications for unemployment insurance rose by 15,000 last week from the previous week. That broadly missed expectations for a fourth-straight week of declines, heightening worries that the average American -- already feeling the effects of the weak housing market -- will have even less means to spend.

Furthermore, if the job market keeps deteriorating, it is tough for Wall Street to see a rebound in sight for the economy's biggest culprit: the tumbling housing market.

"You have to have a paycheck to pay that mortgage," said Craig Peckham, market strategist at Jefferies & Co.

The numbers released Thursday were a sign that despite some upbeat reports over the past month, the economy remains deeply troubled. Investors are not expecting any promising news in the August jobs report, particularly after the ADP National Employment Report said that private sector employment decreased in August by 33,000. Economists are predicting the government will report the eighth straight monthly payrolls drop, and a rise in the unemployment rate.

The market was so disheartened that it showed little reaction when the Institute for Supply Management said the service sector grew unexpectedly in August for the first time in three months as new orders increased and inflation moderated. The August reading of 50.6 was higher than the 50.0 expected, and the reading of 49.2 in July; but the sector's edging above the threshold between contraction and expansion was hardly a sign of a robust economy.

An economic recovery appears to be far off to investors -- and with the Dow down more than 15 percent for the year so far, they don't appear to be holding out for a significant upturn in stocks, either.

"We're seeing nothing but sellers," said Ted Oberhaus, director of equity trading at Lord, Abbett & Co. "In a bear market, you sort of really don't need an excuse to sell."

The Dow fell 344.65, or 2.99 percent, to 11,188.23. It was the worst drop for the blue-chip index since June 26, when it fell more than 358 points, or 3.03 percent.

Broader indexes also tumbled. The Standard & Poor's 500 index fell 38.15, or 2.99 percent, to 1,236.83, and the Nasdaq composite index dropped 74.69, or 3.20 percent, to 2,259.04.

All three indexes moved back into bear market territory, defined as a 20 percent drop from a recent peak. The indexes were at highs, including a record 14,198.09 for the Dow, last October.

As investors fled stocks, they turned to the safety of government bonds, sending Treasury prices higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.62 percent from 3.70 percent late Wednesday.

Not even another drop in oil could console investors. After the government reported a lower-than-expected drop in U.S. gasoline and crude supplies, light sweet crude fell $1.46 to settle at $107.89 a barrel on the New York Mercantile Exchange. Crude is about $30 below its July 11 high of $147.27. Gold prices also slid Thursday.

News about housing didn't help the market. Toll Brothers Inc. CEO Robert Toll said he is seeing signs the housing market is stabilizing, but Ara Hovnanian -- CEO of Hovnanian Enterprises Inc. -- said he sees no evidence yet of a market bottom. The stock market appeared to agree with the latter sentiment, sending homebuilder stocks sharply lower.

Toll Brothers performed better than its peers, even after posting a third-quarter loss; its shares rose 27 cents to $25.07. But shares of Hovnanian, which on Wednesday reported a quarterly loss, sank $1.35, or 17.4 percent, to $6.40. Pulte Homes Inc. fell 86 cents, or 5.8 percent, to $12.05, and KB Home fell $1.22, or 5.7 percent, to $20.11.

The financial sector fared poorly on Thursday as well, particular after bond fund manager Bill Gross wrote in a commentary on his firm's Web site that the U.S. Treasury needs to provide funding to mortgage financiers Fannie Mae and Freddie Mac.

Freddie shares fell 30 cents, or 5.6 percent, to $5.08, and Fannie shares fell 65 cents, or 8.9 percent, to $6.67.

The biggest decliners among the 30 Dow components were three financial stocks: Bank of America Corp., which fell $2.36, or 7.2 percent, to $30.60; Citigroup Inc., which fell $1.31, or 6.7 percent, to $28.30; and American International Group Inc., which fell $1.36, or 6 percent, to $21.22.

Wal-Mart's stock ended down only a penny at $59.78, after it said sales of groceries and back-to-school products helped its August same-store sales rise 3 percent, above expectations.

But the discount chain's success was seen as the corollary of a cash-strapped consumer, and other retailers fell. JCPenney Co. fell $2.07, or 5 percent, to $39.57, while Gap Inc. fell 83 cents, or 4.2 percent, to $19.14.

The Russell 2000 index of smaller companies fell 23.29, or 3.14 percent, to 718.62.

Declining issues outpaced advancers by about 5 to 1 on the New York Stock Exchange, where consolidated volume came to 5.11 billion shares, up from 4.94 billion shares on Wednesday.

Overseas, the Bank of England and European Central Bank left their benchmark interest rates unchanged -- a move analysts expected, as both regions face rising inflation and slowing economic growth.

The ECB also decided to make it more expensive for banks to borrow from the central bank against risky assets -- another worry weighing on investors' minds, Jefferies' Peckham said.

Britain's FTSE 100 fell 2.50 percent, Germany's DAX index fell 2.91 percent, and France's CAC-40 shed 3.22 percent. Japan's Nikkei stock closed down 1.04 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The Dow Jones industrial average ended the week down 322.59, or 2.79 percent, at 11,220.96. The Standard & Poor's 500 index finished down 40.52, or 3.16 percent, at 1,242.31. The Nasdaq composite index ended the week down 111.64, or 4.72 percent, at 2,255.88.

Wall Street wrestled with intensifying economic worries Friday, extending sharp losses after a disheartening jobs report and then grudgingly engaging in some mild bargain hunting that gave the market some modest gains. The major indexes ended the week with big declines, a sign that investors, who not long ago expected the economy to improve, are now growing increasingly discouraged.

Stocks initially fell after the Labor Department reported that payrolls shrank more than predicted last month and that the unemployment rate reached a five-year high. But stocks that had been pounded lower, including a huge drop on Thursday, were suddenly more attractive to investors willing to make some bets.

The NYSE DOW closed HIGHER +32.73 points +0.29% on Friday September 5

Sym Last........ ........Change..........
Dow 11,220.96 +32.73 +0.29%
Nasdaq 2,255.88 -3.16 -0.14%
S&P 500 1,242.31 +5.48 +0.44%
10 Yr Bond(%) 3.6600% +0.0170

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,240.70 -121.40 -2.26%
DAX 6,127.44 -152.13 -2.42%
CAC 40 4,196.66 -107.35 -2.49%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,212.23 -345.43 -2.75%
Hang Seng 19,933.28 -456.20 -2.24%
Straits Times 2,574.21 -51.84 -1.97%

http://biz.yahoo.com/ap/080905/wall_street.html
Stocks mostly rise as investors snap up financials
Friday September 5, 6:00 pm ET
By Tim Paradis, AP Business Writer
Stocks mostly rise as investors look for bargains among financials, consumer staples

NEW YORK (AP) -- Wall Street wrestled with intensifying economic worries Friday, extending sharp losses after a disheartening jobs report and then grudgingly engaging in some mild bargain hunting that gave the market some modest gains. The major indexes ended the week with big declines, a sign that investors, who not long ago expected the economy to improve, are now growing increasingly discouraged.

Stocks initially fell after the Labor Department reported that payrolls shrank more than predicted last month and that the unemployment rate reached a five-year high. But stocks that had been pounded lower, including a huge drop on Thursday, were suddenly more attractive to investors willing to make some bets.

The government said payrolls shrank by 84,000 last month, more than the 75,000 economists predicted, and higher than the 51,000 jobs lost in July. The unemployment rate rose to a five-year high of 6.1 percent from 5.7 percent.

The report confirmed Wall Street's fears that the economy continues to weaken. The nation has lost nearly 550,000 jobs so far this year, eroding investors' hopes for a late-year recovery.

"This was an ugly number that pretty much confirms that our economy continues to trend downward," said Jack Ablin, chief investment officer of Harris Private Bank. "I had thought things were stabilizing, and this just knocks the legs out of any hope of seeing much economic improvement right now."

But investors, with little conviction but willing to make a few bets, picked up some of the stocks hit in a sell-off Thursday, particularly banks and insurers. That lifted the market off its lows, but it was hardly a solid advance.

The Dow Jones industrial average rose 32.73, or 0.29 percent, to 11,220.96; the blue chips had been down 150 points at their lows of the session.

Broader stock ended mixed. The Standard & Poor's 500 index rose 5.48, or 0.44 percent, to 1,242.31, and the Nasdaq composite index fell 3.16, or 0.14 percent, to 2,255.88.

Friday's moves follow a dismal performance on Thursday in which all three major indexes moved back into bear market territory, defined as a 20 percent drop from a recent peak. The Dow plunged more than 340 points in a selloff underpinned by disappointing economic news and lackluster sales reports from retailers; the news drove home to investors that the economy was more troubled than many had thought.

For the week, the Dow lost 2.8 percent, its fourth straight week of losses and the biggest drop since late June. The S&P 500 gave up 3.2 percent and the technology-heavy Nasdaq, home to many stocks seen as riskier than the blue chips, fell 4.7 percent.

Bond prices fell Friday as investors took profits from the gains logged earlier in the week. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.69 percent from 3.62 percent late Thursday.

"Since mid-July I think it's become apparent that the global economies have really weakened pretty sharply," said Thomas J. Lee, U.S. equities strategist at JPMorgan Chase & Co. in New York. He said that while investors had been applauding the drop in oil prices since then, there was an assumption that lower commodities prices would hasten a recovery in the U.S. economy. Now, he said, investors are worried that the economy might be weakening even as oil falls.

"It's disinflation coupled with an accelerating downside in the economy. That's not what people were prepared for. I think people were expecting disinflation as an economic recovery was under way," Lee said. "The surge in unemployment today really underscores that fear."

Wall Street again found little comfort from falling oil. Crude dropped to nearly $105 a barrel in Friday's session as the dollar continued to gain on the euro and investors waited to see whether OPEC would move to restrict output next week following a two-month plunge in prices. The Organization of the Petroleum Exporting Countries is scheduled to meet early next week in Vienna and has indicated it may take action to defend the $100-a-barrel level.

Light, sweet crude settled down $1.66 to $106.23 a barrel on the New York Mercantile Exchange.

Among financials carving out advances, Citigroup Inc. rose 77 cents, or 4.2 percent, to $19.07, while Bank of America Corp. rose $1.63, or 5.3 percent, to $32.23. Wachovia Corp. rose $1.22, or 7.9 percent, to $16.75.

Lehman Brothers Holdings Inc. rose $1.03, or 6.8 percent, to $16.20 after a Sandler O'Neill & Co. analyst said he expects the troubled investment bank to survive the credit crisis. The stock has fluctuated on reports that it is hammering out a deal for a cash infusion or buyout.

In the consumer staples sector, smokeless tobacco maker UST Inc. surged following a report from The New York Times that Altria Group Inc. plans to acquire the company. Altria, parent of Marlboro maker Philip Morris USA, dismissed the report as "pure speculation." Nonetheless, UST, the maker of Skoal and Copenhagen brands, jumped $13.55, or 25 percent, to $67.55, while Altria rose 29 cents to $20.95.

Energy names slipped as oil continued its drop. Chevron Corp. declined $1 to $80.22, while ConocoPhillips fell $1.05 to $75.43.

Advancing issues narrowly outnumbered decliners on the New York Stock Exchange, where consolidated volume came to 4.91 billion shares compared with 5.11 billion shares traded Thursday.

The Russell 2000 index of smaller companies rose 0.23, or 0.03 percent, to 718.85.

Investors overseas sent shares sharply lower on concerns about America's effect on global growth.

Japan's Nikkei stock fell 2.75 percent. In Europe, Britain's FTSE 100 ended down 2.26 percent, Germany's DAX index dropped 2.42 percent, and France's CAC-40 shed 2.49 percent.

The Dow Jones industrial average ended the week down 322.59, or 2.79 percent, at 11,220.96. The Standard & Poor's 500 index finished down 40.52, or 3.16 percent, at 1,242.31. The Nasdaq composite index ended the week down 111.64, or 4.72 percent, at 2,255.88.

The Russell 2000 index finished the week down 20.65, or 2.79 percent, at 718.85.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 12,702.58, down 421.91 points, or 3.21 percent, for the week. A year ago, the index was at 14,846.39.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Stocks rallied Monday as investors placed bets that a recovery in the financial and housing sectors is more likely to occur following the U.S. government's move to bail out mortgage giants Fannie Mae and Freddie Mac. The Dow Jones industrials gained nearly 300 points.

The announcement Sunday that the Treasury Department was seizing control of the companies, which own or back about half the nation's mortgage debt, brushed aside investors' long-simmering worries that the pair would be felled by a spike in bad mortgage debt.

The NYSE DOW closed HIGHER +290.43 points +2.59% on Monday September 8

Sym Last........ ........Change..........
Dow 11,510.74 +290.43 +2.59%
Nasdaq 2,269.76 +13.88 +0.62%
S&P 500 1,267.79 +25.48 +2.05%
30-yr Bond 4.2690% -0.0070

NYSE Volume 7,329,060,500
Nasdaq Volume 2,602,526,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,446.30 +205.60 +3.92%
DAX 6,263.74 +136.30 +2.22%
CAC 40 4,340.18 +143.52 +3.42%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,624.46 +412.23 +3.38%
Hang Seng 20,794.27 +860.99 +4.32%
Straits Times 2,697.03 +122.82 +4.77%

http://biz.yahoo.com/ap/080908/wall_street.html

Stocks rally on plan for mortgage giants
Monday September 8, 5:44 pm ET
By Tim Paradis, AP Business Writer
Wall Street ends sharply higher as government unveils plan to rescue Fannie Mae, Freddie Mac

NEW YORK (AP) -- Stocks rallied Monday as investors placed bets that a recovery in the financial and housing sectors is more likely to occur following the U.S. government's move to bail out mortgage giants Fannie Mae and Freddie Mac. The Dow Jones industrials gained nearly 300 points.

The announcement Sunday that the Treasury Department was seizing control of the companies, which own or back about half the nation's mortgage debt, brushed aside investors' long-simmering worries that the pair would be felled by a spike in bad mortgage debt.

Investors were hoping that the plan to inject up to $100 billion in each of the government-chartered mortgage financiers could not only help lower mortgage rates but perhaps help buoy the overall economy. The move could help banks feel more open to write new mortgages and to refinance existing mortgages at lower rates, offering a possible lifeline to consumers struggling with increasing payments.

But the government's steadying hand for two institutions that many Wall Street observers had said were simply too big to let fail isn't likely to alleviate troubles for homeowners who have fallen far behind on their mortgages.

Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams in New York, said that while the plan boosts confidence in sectors like financials and home builders, it doesn't immediately alleviate worries about other areas of the economy. Still, he said the move was far more welcome than a collapse of Fannie Mae or Freddie Mac.

"It saves Armageddon from happening," he said. "If you think about it, this helps the financials, this helps the housing market. Tech took a huge hit last week. Does this really affect tech? I don't think so."

The Dow Jones industrial average rose 289.78, or 2.58 percent, to 11,510.74 after being up nearly 350 points in the early going.

Broader stock indicators were also higher. The Standard & Poor's 500 index advanced 25.48, or 2.05 percent, to 1,267.79, and the Nasdaq composite index added 13.88, or 0.62 percent, to 2,269.76.

Bond prices edged higher in late trading on Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.68 percent from 3.69 percent late Friday. The dollar was higher against other major currencies, while gold prices rose.

Common shares of Fannie Mae and Freddie Mac will be made virtually worthless by the plan, which will dilute the stock. But the companies' shares had already suffered huge declines in the last year so many shareholders have already endured the majority of their losses.

Fannie Mae shares plunged $6.34, or 90.1 percent, to 70 cents, while Freddie Mac fell $4.21, or 83 percent, to 89 cents.

"This was another needed piece of the puzzle with regard to eliminating fear and stress in the market," said Jim Dunigan, chief investment officer for PNC Wealth Management in Philadelphia, referring to the government's move. "It helps with the balance sheet questions that are out there for financials without a doubt."

Still, Dunigan remains cautious.

"This isn't a magic wand. We're probably going to see another couple bank failures," he said.

The government's action may raise protests from upset shareholders. While Fannie was able to raise $7.4 billion in capital earlier this year, Freddie Mac was unable to fulfill its promise to raise $5.5 billion in capital.

"The Fannie shareholders have a lot of questions that need to be answered from their board of directors," said Doug Daschille, chief executive of investment firm First Principles Capital Management.

Other financial names rallied, particularly those seen as having big exposure to mortgages. Bank of America Corp. jumped $2.50, or 7.7 percent, to $34.73, while Wachovia Corp. rose $2.24, or 13.4 percent, to $18.99. Citigroup Inc. rose $1.25, or 6.6 percent, to $20.32.

Among financials, Lehman Brothers Holdings Inc. was one of the few decliners, falling $2.05, or 12.7 percent, to $14.15 as investors worried that the No. 4 U.S. investment bank was having trouble finding an investor to help shore up its balance sheet.

Home builders also gained ground alongside most financials. Lennar Corp. rose $1.39, or 10.3 percent, to $14.95, and KB Home advanced $2.93, or 14.2 percent, to $23.54.

In the tech space, SanDisk Corp. fell $1.04, or 5.9 percent, to $16.60, while Apple Inc. fell $2.26 to $157.92. Investors are worried the slowing economies overseas will damp demand.

The U.S. government's plan also touched off a global stock rally Monday. Japan's Nikkei stock average jumped 3.4 percent and Hong Kong's Hang Seng index surged 4.3 percent. Britain's FTSE 100 jumped 3.92 percent, Germany's DAX index rose 2.22 percent, and France's CAC-40 surged 3.42 percent.

Light, sweet crude for October delivery rose 11 cents to settle at $106.34 a barrel on the New York Mercantile Exchange. Hurricane Ike fanned unease about the well-being of Gulf of Mexico oil infrastructure that could be in its path.

In corporate news, Washington Mutual Inc. fell 15 cents, or 3.5 percent, to $4.12 after removing Kerry Killinger from the chief executive spot.

United Airlines parent UAL Corp. fell $1.38, or 11 percent, to $10.92 but came well off its lows of the session after the company said an old news report about the company's 2002 bankruptcy filing appeared on a newspaper Web site Monday, stirring fears that the company was filing again. United, which emerged from bankruptcy in February 2006, said reports that it filed for bankruptcy were "completely untrue."

Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 7.17 billion shares compared to 4.91 billion on Friday.

The Russell 2000 index of smaller companies rose 14.01, or 1.95 percent, to 732.86.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Stocks ended a temperamental session moderately higher Wednesday as investors bought up the stocks of energy, materials and consumer-staple companies, but remained cautious about the beleaguered financial sector.

Bank and brokerage stocks finished mostly lower after Lehman Brothers Holdings Inc. said it plans to sell a majority stake in its investment management business and spin off its troubled mortgage assets.

The NYSE DOW closed HIGHER +38.19 points +0.34% on Wednesday September 10

Sym Last........ ........Change..........
Dow 11,268.92 +38.19 +0.34%
Nasdaq 2,228.70 +18.89 +0.85%
S&P 500 1,232.04 +7.53 +0.61%
30-yr Bond 4.2250% +0.0330

NYSE Volume 6,506,576,500
Nasdaq Volume 2,320,215,250

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,366.20 -49.40 -0.91%
DAX 6,210.32 -23.09 -0.37%
CAC 40 4,283.66 -9.68 -0.23%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,346.63 -54.02 -0.44%
Hang Seng 19,999.78 -491.33 -2.40%
Straits Times 2,622.41 -50.80 -1.90%

http://biz.yahoo.com/ap/080910/wall_street.html
Stocks rise modestly as Street mulls Lehman plan
Wednesday September 10, 4:44 pm ET
By Tim Paradis, AP Business Writer
Stocks end moderately higher as Street mulls Lehman plan; energy, materials give market a lift

NEW YORK (AP) -- Stocks ended a temperamental session moderately higher Wednesday as investors bought up the stocks of energy, materials and consumer-staple companies, but remained cautious about the beleaguered financial sector.

Bank and brokerage stocks finished mostly lower after Lehman Brothers Holdings Inc. said it plans to sell a majority stake in its investment management business and spin off its troubled mortgage assets.

On Tuesday, unease about Lehman touched off a broad selloff on worries that the No. 4 U.S. securities company had few options to raise capital. The already beaten down stock lost nearly half its value Tuesday as investors fretted the company would succumb to soured mortgage debt and other financial ills.

Bargain-seeking investors often pick over hard-hit stocks after big pullbacks, so some buying wasn't surprising Wednesday. Investors bought up energy names after they tumbled Tuesday and looked to defensive areas like consumer staples.

But Lehman shares fell another 54 cents, or 6.9 percent, to close at $7.25, after plummeting 45 percent on Tuesday.

"They're trying to buy time, but it's very dangerous on Wall Street to buy time. You need to be able to do business," Axel Merk, portfolio manager at Merk Funds, said of Lehman's plans. "I don't think we're at the end of the financial problems in the markets."

According to preliminary calculations, the Dow Jones industrial average rose 38.19, or 0.34 percent, to 11,268.92, after dipping briefly into negative territory, rising by nearly 150 points, and then pulling back again.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 7.53, or 0.61 percent, to 1,232.04, and the Nasdaq composite index rose 18.89, or 0.85 percent, to 2,228.70.

The Dow fell 2.4 percent Tuesday, essentially erasing big gains logged Monday, while the S&P 500 fell 3.4 percent and the Nasdaq composite index lost 2.6 percent.

Bond prices fell Wednesday after a run-up Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.61 percent from 3.59 percent late Tuesday. The dollar moved higher against most other major currencies, while gold prices fell.

Oil fell in fractious trading as strength in the dollar and indications of a weakening economy overshadowed OPEC's decision to cut back excess production. Light, sweet crude fell 68 cents to settle at $102.58 per barrel on the New York Mercantile Exchange.

Wall Street has grappled with worries about the financial sector since the near-collapse and subsequent sale of Bear Stearns Cos. in March. Banks such as Lehman have struggled in the past year with unwieldy amounts of mortgage-backed securities and other risky investments on their books that have plunged in value.

Many Wall Street observers contend the stock market will not be able to carve out a sustained recovery until investors can determine the scale of losses in the financial sector. Global banks have written off more than $300 billion in bad investments.

"There's always hope every time one of these shoes drops that it's the last shoe, and that lasts for a day," said Ron Kiddoo, chief investment officer at Cozad Asset Management, pointing to Wall Street's about-face Tuesday when relief over a government bailout of mortgage lenders Fannie Mae and Freddie Mac gave way to fresh worries over Lehman.

"You get the feeling that they don't really all know where the problems are," he said. "We need a quarter with these financial companies where they're not doing all these big write-offs."

Washington Mutual Inc. sank 98 cents, or 30 percent, to $2.32 after credit ratings agency Standard & Poor's Ratings Services reduced its outlook on the bank and anxiety grew over its ability to stay in business.

But in the energy group, Exxon Mobil Corp. rose $1.99, or 2.7 percent, to $75.25, while Chevron Corp. advanced $2.37, or 3 percent, to $81.16.

U.S. Steel Corp. rose $6.36, or 6.8 percent, to $100.05, while Freeport-McMoran Copper & Gold Inc. rose $4.02, or 6.2 percent, to $69.18.

Consumer-staples companies such as Wal-Mart Stores Inc. advanced. Wal-Mart rose 89 cents to $62.02 after setting a new 52-week high of $62.48; the previous high was $62.36.

FedEx Corp. rose $3.11, or 3.7 percent, to $87.86 after the package delivery company said it expects its fiscal first-quarter profit will top its own forecast because of lower fuel costs and efforts to trim expenses.

Advancing issues outnumbered decliners by about 8 to 7 on the New York Stock Exchange, where volume came to 1.55 billion shares.

The Russell 2000 index of smaller companies rose 9.87, or 1.40 percent, to 717.16.

Overseas, Japan's Nikkei stock average fell 0.44 percent. Britain's FTSE 100 fell 0.91 percent, Germany's DAX index declined 0.37 percent, and France's CAC-40 fell 0.23 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Stocks made a sizable comeback Thursday, as investors snapped up some of the financial sector's stronger players and pumped money into the materials and transportation sectors. The Dow Jones industrial average rose more than 160 points.

A drop in crude below $101 a barrel also helped reverse Wall Street's early losses, particularly among automaker and transportation stocks like railroad CSX Corp., Ford Motor Co. and General Motors Corp.

The NYSE DOW closed HIGHER +164.79 points +1.46% on Thursday September 11

Sym Last........ ........Change..........
Dow 11,433.71 +164.79 +1.46%
Nasdaq 2,258.22 +29.52 +1.32%
S&P 500 1,249.05 +17.01 +1.38%
30-yr Bond 4.2140% -0.0110

NYSE Volume 6,931,626,500
Nasdaq Volume 2,324,410,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,318.40 -47.80 -0.89%
DAX 6,178.90 -31.42 -0.51%
CAC 40 4,249.07 -34.59 -0.81%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,102.50 -244.13 -1.98%
Hang Seng 19,388.72 -611.06 -3.06%
Straits Times 2,541.15 -81.26 -3.10%

http://biz.yahoo.com/ap/080911/wall_street.html
Stocks rebound, but Lehman remains a worry
Thursday September 11, 6:19 pm ET
By Tim Paradis, AP Business Writer
Wall Street embarks on a big rebound despite worries over Lehman Brothers

NEW YORK (AP) -- Stocks made a sizable comeback Thursday, as investors snapped up some of the financial sector's stronger players and pumped money into the materials and transportation sectors. The Dow Jones industrial average rose more than 160 points.

A drop in crude below $101 a barrel also helped reverse Wall Street's early losses, particularly among automaker and transportation stocks like railroad CSX Corp., Ford Motor Co. and General Motors Corp.

Early in the day, most bank stocks sold off on nervousness about Lehman Brothers Holdings Inc.'s announcement Wednesday that it plans to sell its investment management unit and spin off its commercial real estate assets. The company is seeking to raise cash after making bad bets on holdings tied to real estate.

Traders and analysts appeared unimpressed with the steps outlined by the nation's No. 4 investment bank, punishing the stock. Citigroup and Goldman Sachs lowered their ratings on the stock to "hold" from "buy." Lehman fell $3.03, or nearly 42 percent, to close at $4.22.

"The steps they're taking are being seen by Wall Street as too little, too late," said Arthur Hogan, chief market analyst at Jefferies & Co., referring to Lehman. "You're looking at a company that was a $10 billion company last week that is a $3 billion company today."

But later in the day, major names including JPMorgan Chase & Co., Wells Fargo & Co., and even the embattled Washington Mutual Inc. soared.

"Not everybody's in trouble, and people are realizing that," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. He added, however, that the market is very rumor-driven right now -- which can make for very volatile price movements.

After the market closed Thursday, Washington Mutual announced that it expects its third-quarter provision for loan losses to be about $4.5 billion, down from $5.9 billion in the second quarter.

The Dow rose 164.79, or 1.46 percent, to 11,433.71, after falling by as many as 170 points in the early going.

Broader stock indicators rose. The Standard & Poor's 500 index rose 17.01, or 1.38 percent, to 1,249.05, while the Nasdaq composite index rose 29.52, or 1.32 percent, to 2,258.22.

The market has been changing moods feverishly this week, and rallies in the indexes on Thursday belied an underlying weakness. Declining issues outnumbered advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume came to 6.64 billion shares, up from 6.29 billion shares on Wednesday.

The Russell 2000 index of smaller companies rose 1.84, or 0.26 percent, to 719.00.

A few marquee financial names on Wall Street logged steep declines as investors worried about the health of their balance sheets. Merrill Lynch & Co. fell $3.87, or 16.6 percent, to $19.43, and Wachovia Corp. dropped 80 cents, or 5.3 percent, to $14.28.

But JPMorgan rose $2.25, or 5.7 percent, to $41.65; Wells Fargo rose $2.15, or 6.8 percent, to $33.85; and WaMu recovered from a steep loss to finish up 51 cents, or 22 percent, at $2.83.

Government bond prices ended little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was 3.64 percent, up slightly from 3.63 percent late Wednesday. The dollar was mixed against most other major currencies, while gold prices fell sharply.

Light, sweet crude fell $1.71 to settle at $100.87 a barrel on the New York Mercantile Exchange as a strengthening dollar added to investors' buying power. Still, gasoline prices were up, and the market kept at watchful eye on Hurricane Ike amid worries that it could damage energy installations in the Gulf of Mexico.

Investors also faced fresh concerns about consumers after the Labor Department reported that the number of people seeking jobless benefits dropped 6,000 last week to a seasonally adjusted 445,000. Analysts, on average, had expected a reading of 440,000. The four-week moving average rose slightly to 440,000.

The average number of claims remains at a level that some economists say is worrisome. And the report comes a week after the government said the nation's unemployment rate rose to 6.1 percent in August, a five-year high. A shaky job market can be hard on consumers who also face tighter credit and a weak housing market. That worries investors because consumer spending accounts for more than two-thirds of U.S. economic activity.

In other economic news, the Commerce Department said the nation's trade deficit jumped in July to the highest level in 16 months as oil imports reached a new high. That offset strong export growth.

Transportation names advanced as falling oil eased worries about fuel costs and after railroad CSX Corp. raised its 2008 and long-term financial forecasts. CSX rose $5.85, or 10.7 percent, to $60.70.

UAL Corp.'s United Airlines advanced $1.15, or 11.5 percent, to $11.12. Continental Airlines Inc. rose $2.44, or 15.2 percent, to $18.51 after the company said it expects to draw more money from customers as it cuts costs and raises fees for checked bags.

General Motors Corp. rose $1.33, or 11.7 percent, to $12.75. GM was the biggest gainer among the 30 stocks comprising the Dow industrials.

Overseas, Japan's Nikkei stock average fell 1.98 percent. Britain's FTSE 100 fell 0.89 percent, Germany's DAX index fell 0.51 percent, and France's CAC-40 lost 0.81 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The Dow Jones industrial average ended the week up 201.03, or 1.79 percent, at 11,421.99. The Standard & Poor's 500 index finished up 9.39, or 0.76 percent, at 1,251.70. The Nasdaq composite index ended the week up 5.39, or 0.24 percent, at 2,261.27.

Dow 11,220.96 on Friday Sept - weekly chart looks odd but certainly up!

Stocks finished another volatile session narrowly mixed Friday, as gains in the energy, utilities and materials sectors offset some of Wall Street's angst over the fate of Lehman Brothers Holdings Inc.

The NYSE DOW closed LOWER -11.72 points -0.10% on Friday September 12

Sym Last........ ........Change..........
Dow 11,421.99 -11.72 -0.10%
Nasdaq 2,261.27 +3.05 +0.14%
S&P 500 1,251.70 +2.65 +0.21%
30-yr Bond 4.3260% +0.1120

NYSE Volume 6,351,894,000
Nasdaq Volume 2,025,782,120

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,416.70 +98.30 +1.85%
DAX 6,234.89 +55.99 +0.91%
CAC 40 4,332.66 +83.59 +1.97%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,214.76 +112.26 +0.93%
Hang Seng 19,352.90 -35.82 -0.18%
Straits Times 2,570.67 +29.52 +1.16%

http://biz.yahoo.com/ap/080912/wall_street.html
Stocks mixed as energy sector rises, Lehman falls
Friday September 12, 6:14 pm ET
By Tim Paradis, AP Business Writer
Wall Street ends mixed on Lehman worries, but energy, utilities and materials stocks rise

NEW YORK (AP) -- Stocks finished another volatile session narrowly mixed Friday, as gains in the energy, utilities and materials sectors offset some of Wall Street's angst over the fate of Lehman Brothers Holdings Inc.

The three major indexes all managed to end the week higher.

The troubles of the financial sector dominated trading, as investors tried to glean insights into Lehman's race to sell itself or otherwise regain Wall Street's confidence. The company's shares have spiraled lower this week, heaping pressure on executives at the No. 4 U.S. investment bank to line up a buyer or source of fresh cash.

Lehman shares -- which tumbled 42 percent Thursday and are down more than 94 percent for the year -- fell another 57 cents, or 13.5 percent, to $3.65 on Friday.

The market is anticipating that Lehman will arrive at a deal over the weekend, said Ryan Larson, senior equity trader at Voyageur Asset Management. Lehman, the government and other banks have been declining to comment officially on the issue, but bankers and industry executives have been saying that Lehman is working feverishly to find a buyer.

While a deal would provide some closure on the issue, it won't likely be an antidote for the turbulent market, Larson said.

"Once this deal gets done," Larson said, "you'll see sentiment shift to: Who's next?"

An unexpected slowdown at cash registers last month also weighed on the stock market Friday, particularly on shares of retailers and other consumer discretionary stocks. The Commerce Department said retail sales fell by 0.3 percent in August.

The Dow Jones industrials fell 11.72, or 0.10 percent, to 11,421.99, after falling more than 150 points in the early going.

Broader stock indicators also came well off their lows. The Standard & Poor's 500 index rose 2.65, or 0.21 percent, to 1,251.70, and the Nasdaq composite index rose 3.05, or 0.14 percent, 2,261.27.

The Dow finished the week up 1.79 percent; the S&P finished up 0.76 percent; and the Nasdaq ended up 0.24 percent.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.72 percent in late trading from 3.64 percent late Thursday. The dollar was down against the euro and the British pound and up against the Japanese yen. Gold prices rose.

Light, sweet crude rose 31 cents to settle at $101.18 a barrel on the New York Mercantile Exchange after briefly crossing below the $100 mark for the first time in five months. Investors tracked Hurricane Ike, which churned across the Gulf of Mexico toward the Texas coast and refining and drilling operations in the region.

Worries about risky debt have been hitting other financial stocks this week. American International Group Inc. fell $5.41 on Friday, or more than 30 percent, to $12.14, making it by far the biggest decliner among the 30 stocks that make up the Dow Jones industrial average.

Merrill Lynch & Co. fell $2.38, or 12.3 percent, to $17.05, while Washington Mutual Inc. slipped 10 cents, or 3.5 percent, to $2.73.

"I think everyone talks about more shoes to drop, and of course there have been a couple of those this week with Fannie and Freddie and Lehman. Hopefully it means we'll be getting closer to the end," said Russell Croft of Croft Value Fund.

Last Sunday, the government took over the mortgage financiers Fannie Mae and Freddie Mac -- which on Monday sent the Dow soaring nearly 300 points. Those gains were erased the next day, however, when worries about Lehman resurfaced.

The economic outlook is also keeping the markets volatile.

After the Commerce Department's report on retail sales, investors turned cautious on retailers and other companies that rely on discretionary spending. Sluggishness in buying is an unnerving prospect for Wall Street because consumer spending accounts for more than two-thirds of U.S. economic activity. Macy's Inc. fell $1.04, or 4.8 percent, to $20.81, while Best Buy Co. fell $1.51, or 3.3 percent, to $44.49.

Not all the economic news was unwelcome Friday. Another government report showing a bigger-than-expected drop in wholesale inflation -- the steepest decline in nearly two years -- at least eased some worries about pricing pressure. And a Reuters/University of Michigan survey on sentiment showed consumers are more upbeat than they were earlier in the summer when energy prices were higher.

Beyond the financial sector, energy and materials names advanced, such as Dow components Exxon Mobil Corp., which rose $1.94, or 2.6 percent, to $77.50, and Alcoa Inc., which rose $1.05, or 3.8 percent, to $28.67.

Ford Motor Co. rose 23 cents, or 4.9 percent, to $4.91, while Dow component General Motors Corp. rose 26 cents, or 2 percent, to $13.01. A Goldman Sachs analyst wrote in a note to clients that "it is more likely than not" that a loan program for automakers could receive at least partial funding before Congress adjourns this fall.

Advancing issues outnumbered decliners by about 9 to 7 on the New York Stock Exchange, where consolidated volume came to 6.11 billion shares, down from 6.64 billion shares on Thursday.

The Russell 2000 index of smaller companies rose 1.26 or 0.18 percent, to 720.26.

Overseas, Japan's Nikkei stock average rose 0.93 percent. Britain's FTSE 100 rose 1.85 percent, Germany's DAX index added 0.91 percent, and France's CAC-40 climbed 1.97 percent.

The Dow Jones industrial average ended the week up 201.03, or 1.79 percent, at 11,421.99. The Standard & Poor's 500 index finished up 9.39, or 0.76 percent, at 1,251.70. The Nasdaq composite index ended the week up 5.39, or 0.24 percent, at 2,261.27.

The Russell 2000 index finished the week up 1.41, or 0.20 percent, at 720.26.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 12,764.88, up 62.3 points, or 4.90 percent, for the week. A year ago, the index was at 14,927.60.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Stocks fall sharply following Lehman bankruptcy, Merrill sale; Dow falls more than 500 points

A stunning makeover of the Wall Street landscape sent stocks falling precipitously Monday, with the Dow Jones industrials sliding 500 points in their worst point drop since the September 2001 terrorist attacks. Investors reacted badly to a shakeup of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

Stocks also posted big losses in markets across much of the globe as investors absorbed Lehman's bankruptcy filing and what was essentially a forced sale of Merrill Lynch to Bank of America for $50 billion in stock. While those companies' situations had reached some resolution, the market remained anxious about American International Group Inc., which is seeking emergency funding to shore up its balance sheet. A faltering of the world's largest insurance company likely would have financial implications far beyond that of Lehman, the largest U.S. bankruptcy.

The NYSE DOW closed LOWER -504.48 points -4.42% on Monday September 15

Sym Last........ ........Change..........
Dow 10,917.51 -504.48 -4.42%
Nasdaq 2,179.91 -81.36 -3.60%
S&P 500 1,192.69 -59.01 -4.71%
30-yr Bond 4.1520% -0.1740

NYSE Volume 8,310,149,500

Nasdaq Volume 2,720,704,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,204.20 -212.50 -3.92%
DAX 6,064.16 -170.73 -2.74%
CAC 40 4,168.97 -163.69 -3.78%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,214.76 +112.26 +0.93%
Hang Seng 19,352.90 -35.82 -0.18%
Straits Times 2,486.55 -84.12 -3.27%

http://biz.yahoo.com/ap/080915/wall_street.html
Stocks tumble amid new Wall Street landscape
Monday September 15, 4:31 pm ET
By Tim Paradis, AP Business Writer
Stocks fall sharply following Lehman bankruptcy, Merrill sale; Dow falls more than 500 points

NEW YORK (AP) -- A stunning makeover of the Wall Street landscape sent stocks falling precipitously Monday, with the Dow Jones industrials sliding 500 points in their worst point drop since the September 2001 terrorist attacks. Investors reacted badly to a shakeup of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

Stocks also posted big losses in markets across much of the globe as investors absorbed Lehman's bankruptcy filing and what was essentially a forced sale of Merrill Lynch to Bank of America for $50 billion in stock. While those companies' situations had reached some resolution, the market remained anxious about American International Group Inc., which is seeking emergency funding to shore up its balance sheet. A faltering of the world's largest insurance company likely would have financial implications far beyond that of Lehman, the largest U.S. bankruptcy.

The swift developments that took place Sunday are the biggest yet in the 14-month-old credit crises that stems from now toxic subprime mortgage debt. For the first part of Monday's trading, the market was falling, but in a largely orderly fashion as investors seemed to draw some relief from the resolution of Lehman's problems.

But as the session wore on, and there was no word about AIG, the market's suffered another bout of fear that the ongoing credit crisis will continue to devastate the financial sector, and selling accelerated in the final hour.

Investors are worried that trouble at AIG and the bankruptcy filing by Lehman, felled by $60 billion in bad debt and a dearth of investor confidence, will touch off another series of troubles for banks and financial institutions that may be forced to further write down the value of their own debt assets. Wall Street had been hopeful six months ago that the collapse of Bear Stearns would mark the darkest day of the credit crisis.

AIG's troubles a week after its stock dropped 45 percent are worrisome for some investors because of the company's enormous balance sheet and the risks that troubles with that companies finances could spill over to the companies with which it does business. AIG, one of the 30 stocks that make up the Dow industrials, fell $6.93, or 57 percent, to $5.21 Monday as investors worried that it would be the subject of downgrades from credit ratings agencies.

According to preliminary calculations, the Dow fell 504.48, or 4.42 percent, to 10,917.51, moving below the 11,000 mark for the first time since mid-July. It was the worst point drop for the Dow since it lost 684.81 on Sept. 17, 2001, the first day of trading after the terror attacks. It was also the sixth-largest point drop in the Dow, just behind the 508.00 it suffered in the October 1987 crash.

Broader stock indicators also fell. The Standard & Poor's 500 index declined 58.74, or 4.69 percent, to 1,192.96, and the Nasdaq composite index fell 81.36, or 3.60 percent, to 2,179.91.

The S&P 500 broke through the 1,200.44 trading low seen in mid-July, a key level traders watch. Much of the trading day until about the last hour had been orderly because the market had tested another key level early in the session and managed to stay above it. But the eventual drift lower prompted some investors to hit the "sell" button.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street ended another tumultuous session with a sizable gain Tuesday, partly recovering from its worst sell-off in years after the Federal Reserve said it was keeping interest rates steady. The central bank soothed fears of a worsening financial crisis even as the market waited to learn the fate of troubled insurer American International Group Inc.

In a statement accompanying its decision, the Fed noted the growing strains in the financial markets a day after the Dow Jones industrials plunged 504 points in reaction to continuing turmoil in the financial sector. The Fed also noted the ongoing weakening of the labor market. But it also sought to give some reassurance by saying it expected its policy moves to foster moderate economic growth over time.


he NYSE DOW closed HIGHER +141.51 +1.30% on Tuesday September 16

Sym Last........ ........Change..........
Dow 11,059.02 +141.51 +1.30%
Nasdaq 2,207.90 +27.99 +1.28%
S&P 500 1,213.60 +20.90 +1.75%
30-yr Bond 4.0950% -0.0570

NYSE Volume 9,536,237,000
Nasdaq Volume 3,224,972,250

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,083.40 -120.80 -2.32%
DAX 5,996.25 -67.91 -1.12%
CAC 40 4,087.40 -81.57 -1.96%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,609.72 -605.04 -4.95%
Hang Seng 18,300.61 -1,052.29 -5.44%
Straits Times 2,461.43 -25.12 -1.01%

http://biz.yahoo.com/ap/080916/wall_street.html
Wall Street ended another tumultuous session with a sizable gain Tuesday, partly recovering from its worst sell-off in years after the Federal Reserve said it was keeping interest rates steady. The central bank soothed fears of a worsening financial crisis even as the market waited to learn the fate of troubled insurer American International Group Inc.

In a statement accompanying its decision, the Fed noted the growing strains in the financial markets a day after the Dow Jones industrials plunged 504 points in reaction to continuing turmoil in the financial sector. The Fed also noted the ongoing weakening of the labor market. But it also sought to give some reassurance by saying it expected its policy moves to foster moderate economic growth over time.

Still, the fact that the Fed didn't lower rates was a sign that it doesn't believe the economy needs that type of stimulus. It reiterated that it believed its moves to inject more liquidity into the banking system to help struggling financial institutions would help them, and in turn the economy overall.

"This was the right thing to do," said Tom Higgins, chief economist at Payden & Rygel Investment Management in Los Angeles. "I just don't think the Fed should be responding to the financial market crisis at this stage."

He contends other moves, like broadening the type of collateral the Fed accepts from banks and adding money to the banking system are more effective at addressing credit troubles.

According to preliminary calculations, the Dow rose 141.51, or 1.30 percent, to 11,059.02, after falling about 100 points immediately after the Fed announcement. The Dow at turns rose and fell as much as 175 points in fractious trading; on Monday, it suffered its largest drop since the September 2001 terror attacks.

Broader stock indicators advanced. The Standard & Poor's 500 index rose 20.90, or 1.75 percent, to 1,213.60, and the Nasdaq composite index rose 27.99, or 1.28 percent, to 2,207.90.

On Monday, the Dow fell 4.4 percent, the S&P gave up 4.7 percent and the Nasdaq fell 3.6 percent.

Bond prices fell sharply Tuesday as investors turned away from the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.52 percent from 3.41 percent late Monday. The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude for October delivery fell $3.70 to settle at $92.01 a barrel on the New York Mercantile Exchange, bringing its two-day decline to $10, as investors placed bets that a slowing economy will crimp demand. Gas prices continued to following the disruption to supplies brought by Hurricane Ike, though they were expected to moderate in the coming weeks.

Worries about AIG's well-being have intensified this week after several ratings agencies downgraded the company. Investors fear that a failure by the world's largest insurer would touch off a wave of financial turmoil.

But speculation that the company might be working out a loan from the government corralled some of the market's worries about the company and the stock finished well off its lows. The stock fell $1.01, or 21 percent, to $3.75 after trading as low as $1.25.

Markets around the world have been reeling this week from the bankruptcy filing of Lehman Brothers Holdings Inc. and the quickly assembled weekend sale of Merrill Lynch & Co. to Bank of America Corp. Investors worry that tectonic shifts in the power structure of Wall Street signal that the financial sector's trouble with imperiled credit are far from over.

But the partial recovery in shares of AIG as well and some of the other financial stocks that led the market lower Monday were a welcome boost to investor sentiment. JPMorgan Chase & Co. rose $3.74, or 10 percent, to $40.74, while Wells Fargo & Co. rose $3.93, or 13 percent, to $34.93.

Steven Goldman, chief market strategist at Weeden & Co., said investors are starting to examine even troubled sectors like banks to pluck out those that have managed to sidestep the worst of the credit troubles.

"There are some silver linings in a dire picture," he said, referring to some of the gainers.

Names that investors often rely on as safe bets in a weak economy also rose. Wal-Mart Stores Inc. advanced 51 cents to $62.14, while McDonald's Corp. rose 57 cents to $64.29.

The market showed little reaction to the first drop in the Labor Department's Consumer Price Index in nearly two years. The CPI fell 0.1 percent last month, while the index excluding food and energy costs edged up a mild 0.2 percent. Both figures were in line with analyst expectations.

In corporate news, Goldman Sachs Group Inc., the largest of the two big independent investment banks on Wall Street, posted its sharpest decline in earnings since becoming a public company in 1999. The company said quarterly earnings fell 70 percent from a year earlier and that it saw a marked decrease in client activity. The profit results were better than Wall Street had been expecting, though revenue fell short. The stock fell $2.49 to $133.01.

Morgan Stanley, Goldman's smaller rival, fell $3.49, or 11 percent, to $28.70 and reported better-than-expected results after the closing bell.

Dell Inc. warned that it sees a further softening in global demand in the current quarter. The computer manufacturer fell $2.01, or 11 percent, to $15.98.

Hewlett-Packard Co. announced plans Monday to cut 24,600 jobs, or about 8 percent of its work force, over the next three years as it works through its acquisition of technology-services company Electronic Data Systems Corp. HP shares were little changed early Tuesday. HP rose $3.08, or 6.8 percent, to $48.41.

The Russell 2000 index of smaller companies rose 20.89, or 3.03 percent, to 710.65.

Overseas, markets in Asia fell sharply Tuesday after being closed Monday. Japan's Nikkei stock average fell 4.95 percent. Hong Kong's Hang Seng index lost 5.44 percent.

In Europe, Britain's FTSE 100 fell 3.43 percent, Germany's DAX index lost 1.63 percent, and France's CAC-40 fell 1.96 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

http://biz.yahoo.com/ap/080917/aig.html

Government steps in again, bails out AIG with $85B
Wednesday September 17, 7:08 am ET
By Jeannine Aversa, Ieva M. Augstums and Stephen Bernard, AP Business Writers
Government saves AIG with $85 billion loan, takes 80 percent stake in battered insurance giant

WASHINGTON (AP) -- Another day, but not just another bailout. This one's more like a government takeover.

The U.S. government stepped in Tuesday to rescue American International Group Inc., one of the world's largest insurers, with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in AIG and the right to remove senior management.

AIG's chief executive, Robert Willumstad, is expected to be replaced by Edward Liddy, the former head of insurer Allstate Corp., according to The Wall Street Journal, citing a person it did not name. Willumstad had been at the helm of AIG since June.

A call to AIG to confirm the executive change was not immediately returned.

It was the second time this month the feds put taxpayer money on the hook to rescue a private financial company, saying its failure would further disrupt markets and threaten the already fragile economy.

AIG said it will repay the money in full with proceeds from the sales of some of its assets.

Under the deal, the Federal Reserve will provide a two-year $85 billion emergency loan to AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.

The move was similar to government's seizure on Sept. 7 of mortgage giants Fannie Mae and Freddie Mac, where the Treasury Department said it was prepared to put up as much as $100 billion over time in each of the companies if needed to keep them from going broke.

The Fed said it determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.

It also could "lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said in a statement.

The decision to help AIG marked a reversal for the government from the weekend, when it refused to use taxpayer money to bail out Lehman Brothers Holdings Inc. Lehman, which filed for bankruptcy protection Monday, collapsed under the weight of mounting losses related to its real estate holdings.

The White House said it backed the Fed's decision Tuesday.

"These steps are taken in the interest of promoting stability in financial markets and limiting damage to the broader economy, " White House spokesman Tony Fratto said.

After meeting with Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke in a late-night briefing on Capitol Hill, Congressional leaders said they understood the need for the bailout.

"The administration is approaching an unprecedented step, but unfortunately we are living in unprecedented times. Hearing of these plans, you have to stop to catch your breath. But upon reflection, the alternatives are much worse," said Sen. Charles Schumer, D-N.Y.

In a statement late Tuesday, AIG's board of directors said the loan will protect all AIG policy holders, address concerns of rating agencies and buy the company time to sell off assets.

"We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG's businesses to continue as substantial participants in their respective markets," the statement said. "In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG."

New York officials said the deal helps stave off a fiscal crisis for the state. AIG is based in New York.

"Policy holders will be protected, jobs will be saved," New York Gov. David Paterson said Tuesday night.

The Fed's move was part of a concerted push to help calm jittery markets and investors around the world.

On Tuesday, the Fed decided to keep its key interest rate steady at 2 percent, but acknowledged stresses in financial markets have grown and hinted it stood ready to lower rates if needed.

The central bank also pumped $70 billion into the nation's financial system to help ease credit stresses. In emergency sessions over the weekend, the Fed expanded its loan programs to Wall Street firms, part of an ongoing effort to get credit flowing more freely.

The stock market, which Monday posted its largest point loss session since the Sept. 11 attacks, recovered Tuesday after the Fed's decision on interest rates. The Dow Jones industrials rose 141 points after losing 500 points on Monday.

AIG's shares swung violently, though, as rumors of potential deals involving the government or private parties emerged and were dashed. By late Tuesday, its shares had closed down 20 percent -- and another 45 percent after hours.

The problems at AIG stemmed from its insurance of mortgage-backed securities and other risky debt against default. If AIG couldn't make good on its promise to pay back soured debt, investors feared the consequences would pose a greater threat to the U.S. financial system than this week's collapse of the investment bank Lehman Brothers.

The worries were heightened Monday after Moody's Investor Service, Standard and Poor's and Fitch Ratings lowered AIG's credit ratings, forcing AIG to seek more money for collateral against its insurance contracts. Without that money, AIG would have defaulted on its obligations and the buyers of its insurance -- such as banks and other financial companies -- would have found themselves without protection against losses on the debt they hold.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street plunged again in a crisis of confidence Wednesday as anxieties about the financial system still ran high after the government's bailout of insurer American International Group Inc. The Dow Jones industrial average dropped about 450 points, and investors seeking the safety of hard assets and government debt sent gold, oil and short-term Treasurys soaring.

The NYSE DOW closed LOWER -449.36 -4.06% on Wednesday September 17

Sym Last........ ........Change..........
Dow 10,609.66 -449.36 -4.06%
Nasdaq 2,098.85 -109.05 -4.94%
S&P 500 1,156.39 -57.20 -4.71%
30-yr Bond 4.0810% -0.0140

NYSE Volume 9,349,226,000
Nasdaq Volume 3,131,055,500

NYSE Volume 9,536,237,000
Nasdaq Volume 3,224,972,250

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,912.40 -291.80 -5.61%
DAX 5,860.98 -104.19 -1.75%
CAC 40 4,000.11 -87.29 -2.14%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,749.79 +140.07 +1.21%
Hang Seng 17,637.19 -663.42 -3.63%
Straits Times 2,419.29 -42.14 -1.71%

http://biz.yahoo.com/ap/080917/wall_street.html
Stocks tumble after government bailout of AIG
Wednesday September 17, 4:24 pm ET
By Tim Paradis, AP Business Writer
Wall Street sinks again after Fed bails out AIG, Barclays buys Lehman businesses; Dow down 450

NEW YORK (AP) -- Wall Street plunged again in a crisis of confidence Wednesday as anxieties about the financial system still ran high after the government's bailout of insurer American International Group Inc. The Dow Jones industrial average dropped about 450 points, and investors seeking the safety of hard assets and government debt sent gold, oil and short-term Treasurys soaring.

The market was more unnerved than comforted by news that the Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company, which lost billions in the risky business of insuring against bond defaults. Wall Street had feared that the conglomerate, which has its tentacles in various financial services industries around the world, would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy. The ramifications of the world's largest insurer going under likely would have far surpassed the demise of Lehman.

But the moves left the market worried about problems that might worsen at other financial companies.

The two independent Wall Street investment banks left standing -- Goldman Sachs Group Inc. and Morgan Stanley -- remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.

Lehman filed for bankruptcy protection on Monday, and by late Tuesday had sold its North American investment banking and trading operations to Barclays, Britain's third-largest bank, for the bargain price of $250 million. Over the weekend, Merrill Lynch & Co., the world's largest brokerage, sold itself in a last-ditch effort to avoid failure to Bank of America Corp.

"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"

He said the fear gripping the markets reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter. Over the past year, companies including Lehman and AIG have sought to reassure investors that they weren't in trouble, and now the market isn't sure who can and can't be trusted.

"No one's going to be believing anybody now because AIG said they were OK along with everybody else," Stone said.

According to preliminary calculations, the Dow fell 449.36, or 4.06 percent, to 10,609.66, finishing not far off its lows of the session. After a nosedive Monday, the index is down more than 7 percent on the week, and has fallen more than 25 percent since reaching a record close of 14,164.53 on Oct. 9 last year.

Broader stock indicators also fell sharply. The Standard & Poor's 500 index dropped 57.21, or 4.71 percent, to 1,156.39, while the Nasdaq composite index fell 109.05, or 4.94 percent, to 2,098.85.

About 200 stocks rose on the New York Stock Exchange, while nearly 3,000 fell.

 

[deadset]

Central banks pump a further $247 Billion to calm concerns :
http://www.bloomberg.com/apps/news?pid=20601087&sid=abyFUcrzapb4&refer=home

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government might create an entity to absorb banks' bad debt. The report also cooled investors' fervor for the safest types of investments like government debt.

The report that Treasury Secretary Henry Paulson is considering the formation of a vehicle like the Resolution Trust Corp. that was set up during the savings and loan crisis of the late 1980s and early 1990s left previously solemn investors ebullient. Wall Street hoped a huge federal intervention could help financial institutions jettison bad mortgage debt and stop the drain on capital that has already taken down companies including Bear Stearns Cos. and Lehman Brothers Holdings Inc.


The NYSE DOW closed HIGHER +410.03 points +3.86% on Thursday September 18

Sym Last........ ........Change..........
Dow 11,019.69 +410.03 +3.86%
Nasdaq 2,199.10 +100.25 +4.78%
S&P 500 1,206.51 +50.12 +4.33%
30-yr Bond 4.1130% +0.0320

NYSE Volume 10,667,665,000
Nasdaq Volume 3,978,115,750

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,880.00 -32.40 -0.66%
DAX 5,863.42 +2.44 +0.04%
CAC 40 3,957.86 -42.25 -1.06%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,489.30 -260.49 -2.22%
Hang Seng 17,632.46 -4.73 -0.03%
Straits Times 2,428.85 +9.56 +0.40%

http://biz.yahoo.com/ap/080918/wall_street.html
Stocks surge on report of entity for bad debt
Thursday September 18, 5:03 pm ET
By Tim Paradis, AP Business Writer
Stocks end sharply higher on report that government will create entity to hold banks' debt
NEW YORK (AP) -- Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government might create an entity to absorb banks' bad debt. The report also cooled investors' fervor for the safest types of investments like government debt.

The report that Treasury Secretary Henry Paulson is considering the formation of a vehicle like the Resolution Trust Corp. that was set up during the savings and loan crisis of the late 1980s and early 1990s left previously solemn investors ebullient. Wall Street hoped a huge federal intervention could help financial institutions jettison bad mortgage debt and stop the drain on capital that has already taken down companies including Bear Stearns Cos. and Lehman Brothers Holdings Inc.

Worries about financial landmines on companies' books have essentially crippled parts of the world's financial markets in recent days and led to the intense volatility in the markets this week.

"It's going to take a lot of the bad debt off the balance sheets of these companies," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York, commenting on the possibilities of an entity akin to the RTC. It could alleviate many of the pressures causing the credit crisis, he said, and reopen moribund credit markets. But Fullman noted, "the devil's in the details."

"Bear markets are very sensitive to news. And on a scale of 1 to 10, this one is a 13," he said.

The report from CNBC gave direction to a market that had bolted in and out of positive territory for much of the session as investors shuttled between the safety of Treasury bills and gold and the bargains posed by stocks that have been pounded lower.

According to preliminary calculations, the Dow soared 410.03, or 3.86 percent, to 11,019.69, surging 560 points from its low of the day, 10,459.44. It was the Dow's biggest percentage point gain since October 2002 but still leaves the index down about 400 points for the week after routs Monday and Wednesday.

Broader stock indicators also jumped. The Standard & Poor's 500 index rose 50.12, or 4.33 percent, to 1,206.51, and the Nasdaq composite index advanced 100.25, or 4.78 percent, to 2,199.10.

The report of a broader government bailout proved more reassuring to investors than moves before Wall Street's opening bell Thursday by the Federal Reserve and other major central banks to inject as much as $180 billion into global money markets. The moves were an attempt to keep the credit crisis from worsening; the Fed added another $55 billion in overnight loans Thursday.

But it was only the prospect of a more comprehensive vehicle to sweep up bad debt that emboldened investors. Congress established the RTC in 1989 to buy $394 billion worth of real estate, mortgages and other assets of hundreds of failed savings-and-loan institutions. The corporation operated for several years disposing of the associations' assets, and then went out of business.

A repository for soured mortgage debt could help alleviate the grinding of the gears in the world's credit markets have driven up the cost of borrowing for businesses; banks have become hesitant to make loans even to each other in recent days for fear of what institutions might be hobbled by soured debt. Investors are also contending with worries that more big-name financial companies could falter.

Fear in the markets had led to speculation about the future of such major players as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley. Media reports have been saying that Wells Fargo & Co. and Citigroup Inc. are interested in a possible takeover of Washington Mutual; and a person familiar with the negotiations said Morgan Stanley and Wachovia Corp. are in talks about a possible combination. He spoke on condition of anonymity because the talks are ongoing.

"We're seeing a tremendous amount of nervousness. That nervousness is leading to volatility," said Anthony Conroy, head trader for BNY ConvergEx Group. He said the markets hadn't seen as much fractiousness since the 1920s.

Advancing issues outnumbered decliners by more than 3 to 1 on the New York Stock Exchange, where volume came to 2.45 billion shares compared with 2.14 billion traded Wednesday. Trading remained heavy as it has all week amid investors' fears about the well-being of the financial system. Beyond general uncertainty, traders were positioning themselves ahead of Friday's "quadruple witching," which marks the simultaneous expiration of four types of options contracts and can exacerbate volatility.

Investors shying from the risks of stocks turned to government-backed debt. On Wednesday, the 3-month Treasury bill -- considered one of the safest short-duration assets -- saw demand surge so high that its yield briefly dipped into negative territory for the first time since 1940. Investors are so focused on parking their money in safe assets that they're willing to take very little return on such investments.

The prices for short-duration Treasurys fell from Wednesday's levels. But the yield on the 3-month T-bill was still extremely low at 0.23 percent -- up from 0.2 percent late Wednesday, but well below its yield of 1.60 percent just a week ago.

Longer-term bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 3.55 percent from 3.42 percent late Wednesday.

Investors also continued a move into other safe havens, though demand eased somewhat as stocks soared. Gold rose again Thursday, up $50.20 to $900.70 an ounce on the New York Mercantile Exchange after posting its largest ever one-day price jump Wednesday.

Oil shot up early in the day, moving back above $100 as investors sought it as another haven. But crude fell back with the market's realization that the financial turmoil will likely exacerbate the drop in demand that has taken oil down sharply from its July record of $147.27 a barrel.

Light, sweet crude on the Nymex rose 72 cents to settle at $97.88 a barrel.

"We are in uncharted territory," said Linda Duessel, the equity market strategist at Federated Investors. "The seriousness and the size of this fallout has been underestimated from the beginning. It's most disconcerting what's going on in the credit market."

Investors remained jittery throughout Thursday's session. The Chicago Board Options Exchange's volatility index, known as the VIX, set a new high for the year in trading Thursday before closing lower. Often referred to as the "fear index," the VIX at times rose to levels not seen since October 2002.

Mixed economic readings drew little attention as investors focused on the financials and the credit markets.

The Labor Department reported that initial claims for unemployment benefits rose by 10,000 last week to 455,000, due primarily to Louisiana's job losses from Hurricane Gustav. And the Philadelphia Fed said its regional manufacturing report improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.

Among financials, Morgan Stanley rose 80 cents, or 3.7 percent, to $22.55 as the investment bank sought a buyer or cash infusion to shore up its flagging share price. The stock has fallen sharply in the past week following Monday's bankruptcy filing at rival Lehman Brothers Holdings Inc. and a forced sale of Merrill Lynch & Co. to Bank of America Corp.

The Russell 2000 index of smaller companies rose 47.30, or 6.99 percent, to 723.68.

Overseas, Japan's Nikkei stock average dropped 2.22 percent to its lowest closing level in over three years. Hong Kong's Hang Seng index lost 0.03 percent. Britain's FTSE 100 fell 0.66 percent, Germany's DAX index rose 0.04 percent, and France's CAC-40 fell 1.06 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street had another extraordinary rally Friday as investors stormed back into the market, relieved that the government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt. The Dow Jones industrials soared about 370 points, giving them a gain of about 780 over two days, and Treasurys fell as money flowed into equities.

The Dow rose 368.75, or 3.35 percent, to 11,388.44 after having been up as much as 463.36.

The Dow Jones industrial average ended the week down 33.55, or 0.29 percent, at 11,388.44. The Standard & Poor's 500 index finished up 3.38, or 0.27 percent, at 1,255.08. The Nasdaq composite index ended the week up 12.63, or 0.56 percent, at 2,273.90.


The NYSE DOW closed HIGHER +368.75 points +3.35% on Friday September 19

Sym Last........ ........Change..........
Dow 11,388.44 +368.75 +3.35%
Nasdaq 2,273.90 +74.80 +3.40%
S&P 500 1,255.08 +48.57 +4.03%
30-yr Bond 4.3660% +0.2530

NYSE Volume 9,497,775,000
Nasdaq Volume 4,044,535,500

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,311.30 +431.30 +8.84%
DAX 6,189.53 +326.11 +5.56%
CAC 40 4,324.87 +367.01 +9.27%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,920.86 +431.56 +3.76%
Hang Seng 19,327.73 +1,695.27 +9.61%
Straits Times 2,559.07 +139.86 +5.78%

http://biz.yahoo.com/ap/080919/wall_street.html
Stocks soar as investors bet on gov't rescue plan
Friday September 19, 6:58 pm ET
By Tim Paradis, AP Business Writer
Wall Street extends big rally on bank rescue hopes, temporary ban on short sales of financials

NEW YORK (AP) -- Wall Street had another extraordinary rally Friday as investors stormed back into the market, relieved that the government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt. The Dow Jones industrials soared about 370 points, giving them a gain of about 780 over two days, and Treasurys fell as money flowed into equities.

The government's proposal, while still a work in progress, has placated investors who worried that a continuum of bad bets on mortgages would hobble more financial companies and cause further damage to the strained banking system and the overall economy.

"If a solid plan is put in place, it's definitely going to be a positive in easing the pain," said Stephen Carl, principal and head of equity trading at The Williams Capital Group. He added, though, that the set-up of any plan will determine its success.

A new government ban on short selling, or placing bets that a stock will fall, likely added to the market's gains as traders adjusted their positions. "A big chunk of this is scaring all the shorts to cover their bets," said Joe Battipaglia, market strategist at Stifel, Nicolaus & Co., referring to short sellers.

Treasury Secretary Henry Paulson, speaking about the rescue plan, said a bold approach is needed to remove troubled assets from the books of financial firms. He offered few details, but said he would working through the weekend with congressional leaders to assemble a remedy.

The plan could help neutralize a yearlong credit crisis that intensified this week. Wall Street suffered massive losses Monday and Wednesday, and credit markets essentially seized up following this week's bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.

Analysts said it was the first government response decisive enough to restore confidence in the markets; in the past, it has relied largely on steps like injecting cash into the banking system that, at least until now, had a limited impact.

"Everything they had done had been a Band-Aid approach, at the margins," said Jay Mueller, economist at Strong Capital Management. "Now we're dealing with the root problem."

The government took other steps Friday to restore stability to the financial system. The Federal Reserve said it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed injected more money into the U.S. financial system, as it had done earlier in the week. The central bank also said it will buy short-term debt obligations issued by mortgage giants Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

To further ease investors' anxieties and bolster tattered investor confidence, the Treasury Department has decided to use a Depression-era fund to provide guarantees for U.S. money market mutual funds. Money market mutual funds are typically considered safe, but some investors have been fleeing them, fearing that the funds' holdings included souring corporate debt.

And to help limit the freefall in financial stocks, the Securities and Exchange Commission on Friday enacted a ban until next month on the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against a stock by borrowing shares and then selling them in the open market. A short-seller's hope is the stock will fall; if it does, the stock can be bought back at the lower price. Those cheaper shares can be returned to the lender, allowing the investor to pocket the profits. Traders can lose, however, if the stock rises.

Wall Street observers have disagreed over the extent to which pressure from all those bets that a stock will fall shaped investor sentiment and strangled some financial stocks, like those of Lehman Brothers last week. Some say the fundamental problems with overleveraged financial companies warranted the pessimism while others say the short selling was a death knell for some financial names.

"The federal government has been petitioned by Wall Street to take evasive action in the money markets, the stock and bond markets, to avoid a complete meltdown of the credit system," said Battipaglia. "Once the credit system melts down, the economy falls. We can hand-wring about if this is the proper thing for the government to do, or if Wall Street pulled the panic button too soon, but that's something for the historians to sort out."

It's difficult to quantify how much of the market's gains reflected short sellers who are forced to step in and cover their bets by buying now rising stocks that had predicted would fall. While that appeared to play some role in the advances Thursday and Friday, the Nasdaq composite index -- dominated by big technology stocks, not financials -- showed big gains along with the Dow and the Standard & Poor's 500 index.

The Dow rose 368.75, or 3.35 percent, to 11,388.44 after having been up as much as 463.36.

Friday was a quarterly "quadruple witching" day, which marks the simultaneous expiration of options contracts, an event that often adds to volatility and heavy volume. Still, much of the market's moves were due to the government's actions Friday.

Broader stock indicators also surged. The S&P 500 index rose 48.57, or 4.03 percent, to 1,255.08, and the Nasdaq composite index rose 74.80, or 3.40 percent, to 2,273.90.

Even with Friday's big gains, stocks didn't end the week with much change after the whipsaw sessions. The Dow slipped 0.29 percent, the S&P 500 rose 0.27 percent and the Nasdaq added 0.56 percent.

Treasury prices dropped as investors poured money back into stocks. The yield on the 3-month Treasury bill -- a safe investment to which investors have rushed this week -- rose to 0.95 percent from 0.07 percent late Thursday. Yields move opposite from price. The yield on the benchmark 10-year Treasury note shot up to 3.81 percent from 3.53 percent late Thursday.

The stock market's enormous swings during the week reveal how anxious investors have been about the tightness in the credit markets the possibility that other financial companies might succumb to the difficulties in the markets.

The only lasting move in a week of intense volatility came late in Thursday's session when reports emerged that the government was considering a plan that would shift soured debt off financials' books. A wobbly market rocketed higher, giving the Dow a 410-point gain for the session, buying that continued through Friday.

The dollar rose against most other major currencies in Friday trading, while gold prices jumped. Light, sweet crude rose $6.67 to settle at $104.55 a barrel on the New York Mercantile Exchange.

Advancing issues outnumbered decliners by about 7 to 1 on the New York Stock Exchange, where consolidated volume came to a heavy 9.1 billion shares compared with 10.3 billion shares traded Thursday.

The Russell 2000 index of smaller companies rose 30.06, or 4.15 percent, to 753.74.

Overseas stock markets soared. Japan's Nikkei stock average jumped 3.8 percent, and Hong Kong's Hang Seng index surged 9.61 percent. In Europe, Britain's FTSE 100 jumped 8.84 percent, Germany's DAX index advanced 5.56 percent, and France's CAC-40 rose 9.27 percent.

The Dow Jones industrial average ended the week down 33.55, or 0.29 percent, at 11,388.44. The Standard & Poor's 500 index finished up 3.38, or 0.27 percent, at 1,255.08. The Nasdaq composite index ended the week up 12.63, or 0.56 percent, at 2,273.90.

The Russell 2000 index finished the week up 33.48, or 0.27 percent, at 753.74.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 12,882.14, up 117.26 points, or 0.92 percent, for the week. A year ago, the index was at 15,371.29.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[noirua]

Hi bigdog, I'm not sure all this is nearly as good as it looks. The risk has just gone elsewhere.
If as your post says, short covering is part of the reason for the jump and falling bonds means interest rates rising. Then next week may see some re-tracing.