NYSE Dow Jones finished today at:

[bigdog]

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

Volatility again swept the financial markets Monday as investors grew nervous about an amorphous government plan to buy $700 billion in banks' mortgage debt. Stocks fell sharply, taking the Dow Jones industrials down more than 370 points, while investors sought safety in hard assets such as gold and oil, which at one point shot up more than $25 a barrel.

The dollar skidded lower, contributing to oil's surge, while the credit markets were still uneasy but not showing the frantic trading they saw last week. Oil's rise of $16.37 to a closing price $120.92 a barrel came as investors snapped up supplies to cover a contract that expired at the end of Monday's session. Crude's advance -- it was up $25.45 at one point -- showed the intensity of emotion in the market, and still-active contracts also rose sharply.


The NYSE DOW closed LOWER -372.75 points -3.27% on Monday September 22

Sym Last........ ........Change..........
Dow 11,015.69 -372.75 -3.27%
Nasdaq 2,178.98 -94.92 -4.17%
S&P 500 1,207.09 -47.99 -3.82%
30-yr Bond 4.4070% +0.0410

NYSE Volume 5,385,167,000
Nasdaq Volume 1,932,166,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,236.26 -75.04 -1.41%
DAX 6,107.75 -81.78 -1.32%
CAC 40 4,223.51 -101.36 -2.34%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,090.59 +169.73 +1.42%
Hang Seng 19,632.20 +304.47 +1.58%
Straits Times 2,544.13 -14.94 -0.58%

http://biz.yahoo.com/ap/080922/wall_street.html
Markets remain skittish as investors seek safety
Monday September 22, 4:33 pm ET
By Tim Paradis
Markets see volatility as investors await bailout details; oil surges as traders seek safety

NEW YORK (AP) -- Volatility again swept the financial markets Monday as investors grew nervous about an amorphous government plan to buy $700 billion in banks' mortgage debt. Stocks fell sharply, taking the Dow Jones industrials down more than 370 points, while investors sought safety in hard assets such as gold and oil, which at one point shot up more than $25 a barrel.

The dollar skidded lower, contributing to oil's surge, while the credit markets were still uneasy but not showing the frantic trading they saw last week. Oil's rise of $16.37 to a closing price $120.92 a barrel came as investors snapped up supplies to cover a contract that expired at the end of Monday's session. Crude's advance -- it was up $25.45 at one point -- showed the intensity of emotion in the market, and still-active contracts also rose sharply.

Gold, also in demand as a safe haven, rose $40.90 to $905.60.

While investors last week were relieved that federal authorities were constructing a plan to relieve the nation's banks of their toxic assets, many weren't waiting for the details to emerge before seeking safety. Wall Street is not sure how successful the plan might be in unfreezing credit markets, which many businesses depend on to fund day-to-day operations, and for propping up the still-weak housing market.

Bush administration officials and congressional leaders have been meeting on the rescue plan, the thrust of which congressional leaders have endorsed. Many market observers are hoping for details of the plan to emerge by midweek and delays could weigh further on investor sentiment.

"We need to have confidence built," said Rob Lutts, chief investment officer at Cabot Money Management Inc. in Salem, Mass. "This government opening of the checkbook -- it's a stopgap measure that will calm people and help us buy a little bit more time but ultimately what we need to see is more confidence."

While investors try to determine how helpful the government's lifeline might be they also were absorbing more news about the rapid changes in the banking sector. Morgan Stanley said it is working to sell up to a 20 percent stake to Japan's Mitsubishi UFJ Financial Group Inc., perhaps a sign that the government's stabilizing hand will make investors more willing to put money into banks.

The announcement comes after the Federal Reserve late Sunday granted Morgan Stanley and Goldman Sachs, the country's last two major investment banks, approval to change their status to bank holding companies. The change of status will allow the companies to set up commercial banks that will be able to take deposits, significantly bolstering the resources of both. However, they also will be subject to more regulation.

That shift came a week after negotiations failed to save Lehman Brothers Holdings Inc. That and the government's plan to bail out insurer American International Group Inc. helped lead to a seizing up of the credit markets that spurred the government to formulate its plan to rescue companies from their bad debt, which was in turn destroying confidence in the credit markets.

The yield on the Treasury's 3-month Treasury bill was at 0.90 percent Monday, down from 0.94 percent late Friday, indicating that investors were still willing to take low returns on a safe asset. However, the yield was well above yields around zero at the height of last week's frenetic buying; yields move in the opposite direction from price. Short-term Treasurys are seen as the safest place to put cash.

The Treasury's 2-year note's yield was at 2.12 percent, down from 2.13 percent Friday. The yield on the 10-year benchmark Treasury was unchanged at 3.82 percent from late Friday.

According to preliminary calculations, the Dow fell 372.75, or 3.27 percent, to 11,015.69. The retreat comes after the stock market's best two-day advance in years so some retrenchment, especially amid the anxiety on the Street, wasn't unexpected.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 47.99, or 3.82 percent, to 1,207.09, and the Nasdaq composite index fell 94.92, or 4.17 percent, to 2,178.98.

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

Financial markets extended their declines Tuesday as investors worried that lawmakers were beginning to doubt the necessity of a broad government bailout for financial institutions as a way to revive ailing credit markets.

Top economic officials updating Congress about efforts to work out a $700 billion financial rescue plan faced a greater degree of second-guessing from lawmakers than some investors had expected. The Dow Jones industrials, which had been higher for the first half of the session ended at the lows of the day, tacking losses onto a steep drop Monday.

The NYSE DOW closed LOWER -161.52 points -1.47% on Tuesday September 23

Sym Last........ ........Change..........
Dow 10,854.17 -161.52 -1.47%
Nasdaq 2,153.34 -25.64 -1.18%
S&P 500 1,188.22 -18.87 -1.56%
30-yr Bond 4.4340% +0.0270

NYSE Volume 5,227,321,000
Nasdaq Volume 1,974,193,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,136.12 -100.14 -1.91%
DAX 6,068.53 -39.22 -0.64%
CAC 40 4,139.82 -83.69 -1.98%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,090.59 +169.73 +1.42%
Hang Seng 18,872.85 -759.35 -3.87%
Straits Times 2,476.51 -67.62 -2.66%

http://biz.yahoo.com/ap/080923/wall_street.html
Stocks extend fall as Street weighs bailout plan
Tuesday September 23, 4:33 pm ET
By Tim Paradis, AP Business Writer
Stocks extend declines as investors weigh lawmaker sentiment on proposed $700B bailout plan

NEW YORK (AP) -- Financial markets extended their declines Tuesday as investors worried that lawmakers were beginning to doubt the necessity of a broad government bailout for financial institutions as a way to revive ailing credit markets.

Top economic officials updating Congress about efforts to work out a $700 billion financial rescue plan faced a greater degree of second-guessing from lawmakers than some investors had expected. The Dow Jones industrials, which had been higher for the first half of the session ended at the lows of the day, tacking losses onto a steep drop Monday.

Still, trading appeared more orderly than Monday, when investors rushed into hard assets like oil and gold. Meanwhile, demand remained high for 3-month Treasury bills, considered the safest short-term financial asset, while the dollar regained some ground after being hard hit Monday.

After days of intense gyrations in financial markets, investors are anxious over whether the plan to absorb bad mortgages and other risky assets will help steer the economy onto more solid footing.

Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission Chairman Christopher Cox testified before lawmakers, who are working with the Bush administration to complete the details of the bailout.

But traders grew nervous as the officials faced questions about whether the government's planned response was appropriate. Sen. Chuck Schumer, D-N.Y., for example, asked whether $150 billion might be adequate to get the program started if more money were promised.

The market remains uncertain about how long it will take for the bailout plans to take effect, and when they do, how effective they will be.

"There's skepticism about whether the $700 billion number is the right number," said Jim Herrick, manager and director of equity trading at Baird & Co.

Bernanke told the Senate Banking Committee that Congress risks triggering a recession if it doesn't act on the plan. He said inaction could leave a range of businesses unable to borrow the money while consumers could find it impossible to finance big purchases like cars and homes.

Financial markets showed uneasiness as investors listened to the testimony, but not the fear and volatility that dominated Monday's trading.

The market for short-term Treasurys remained strained. The yield on the 3-month T-bill rose to fell to 0.79 percent from 0.88 percent on Monday; last week, it was around zero after investors flooded money into T-bills as the credit markets seized up. That spurred the Bush administration to formulate its debt buyout plan.

The yield on the benchmark 10-year Treasury note, which trades opposite its price, fell to 3.82 percent from 3.85 percent late Monday.

The dollar, whose decline Monday drove some of the frenetic trading in other markets, was mixed against other major currencies, while gold prices declined after starting the week with a big advance.

According to preliminary calculations, the Dow fell 161.52, or 1.47 percent, to 10,854.17 after having risen more than 125 points in the early going and then falling by more than 180. With Monday's 370-point decline, the blue chips are down 534 points, or 4.69 percent, for the week.

Broader stock indicators also fell Tuesday. The Standard & Poor's 500 index fell 18.87, or 1.56 percent, to 1,188.22, and the Nasdaq composite index fell 25.67, or 1.18 percent, to 2,153.34.

 

[Aussiejeff]

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

Financial markets extended their declines Tuesday as investors worried that lawmakers were beginning to doubt the necessity of a broad government bailout for financial institutions as a way to revive ailing credit markets.

Top economic officials updating Congress about efforts to work out a $700 billion financial rescue plan faced a greater degree of second-guessing from lawmakers than some investors had expected. The Dow Jones industrials, which had been higher for the first half of the session ended at the lows of the day, tacking losses onto a steep drop Monday.

The NYSE DOW closed LOWER -161.52 points -1.47% on Tuesday September 23

Sym Last........ ........Change..........
Dow 10,854.17 -161.52 -1.47%
Nasdaq 2,153.34 -25.64 -1.18%
S&P 500 1,188.22 -18.87 -1.56%

Notably, almost all of that 161 point loss was hammered out in the last 45mins of trading. All Ords might not respond well to that closing sentiment.


aj

 

[bigdog]

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

Tension grew in the financial markets Wednesday, sending stocks mostly lower as investors worried about the effectiveness of a still-emerging government plan to rescue banks from crippling debt. The credit markets also showed added strain, with rising demand for short-term Treasury bills, considered the safest of investments.

Wall Street was calmer than during the first two days of this week, with stocks meandering in and out of positive territory while investors tried to determine what shape the $700 billion plan might take.

According to preliminary calculations, the Dow Jones industrial average fell 29.00, or 0.27 percent, to 10,825.17 after moving in and out of positive territory. The decline leaves the Dow down more than 560 points, or about 5 percent, for the week.

The Dow only recovered in the last 15 minutes; check out the chart below!



The NYSE DOW closed LOWER -29.00 points -0.27% on Wednesday September 24

Sym Last........ ........Change..........
Dow 10,825.17 -29.00 -0.27%
Nasdaq 2,155.68 +2.35 +0.11%
S&P 500 1,185.87 -2.35 -0.20%
30-yr Bond 4.3780% -0.0560

NYSE Volume 4,812,278,500
Nasdaq Volume 1,818,174,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,095.57 -40.55 -0.79%
DAX 6,052.87 -15.66 -0.26%
CAC 40 4,114.54 -25.28 -0.61%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,115.03 +24.44 +0.20%
Hang Seng 18,961.99 +89.14 +0.47%
Straits Times 2,477.60 +1.09 +0.04%

http://biz.yahoo.com/ap/080924/wall_street.html
Stocks end little changed amid debate over bailout
Wednesday September 24, 4:35 pm ET
By Tim Paradis, AP Business Writer
Stocks end little changed as markets await details of lifeline for banks; credit remains tight

NEW YORK (AP) -- Tension grew in the financial markets Wednesday, sending stocks mostly lower as investors worried about the effectiveness of a still-emerging government plan to rescue banks from crippling debt. The credit markets also showed added strain, with rising demand for short-term Treasury bills, considered the safest of investments.

Wall Street was calmer than during the first two days of this week, with stocks meandering in and out of positive territory while investors tried to determine what shape the $700 billion plan might take.

Initial enthusiasm over investor Warren Buffett's decision to invest $5 billion in Goldman Sachs Group Inc. gave way to broader concerns that the dealmaking in Washington could produce less potent medicine than proponents say is necessary to aid moribund credit markets. Fear about bad debt on the books of financial companies has led to tightness in credit markets. That has made it difficult for businesses and consumers alike to borrow money.

Treasury Secretary Henry Paulson told the House Financial Services Committee that he agreed to limit the pay of Wall Street executives whose companies might benefit from the proposed $700 billion measure for financial services firms.

Paulson appeared with Federal Reserve Chairman Ben Bernanke before Congress for a second day to brief lawmakers on the plan. Their appearance on Capitol Hill Tuesday unnerved investors, who questioned whether lawmakers were beginning to doubt the necessity and form of the government bailout.

The waiting was clearly wearing on the credit markets, raising concern again about liquidity.

Demand for short-term government Treasuries increased as investors again sought safe places to keep cash. The yield on the 3-month Treasury bill, considered the safest short-term financial asset, was at 0.49 percent late Wednesday, down from 0.79 percent late Tuesday. Last week, demand spiked so high that the yield briefly dipped into negative territory; investors were so focused on putting their money in safe assets that they have been willing to accept very little or even negative returns.

In other Treasury trading, the yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.81 percent from 3.80 percent late Tuesday.

"I think you're seeing a lot of tough talk from politicians who don't want to seem like they're rolling over for Wall Street and, normally, people would see that for what it is. But right now investors are exceptionally nervous," said Stephen Massocca, co-chief executive of Pacific Growth Equities in San Francisco.

According to preliminary calculations, the Dow Jones industrial average fell 29.00, or 0.27 percent, to 10,825.17 after moving in and out of positive territory. The decline leaves the Dow down more than 560 points, or about 5 percent, for the week.

Broader stock indicators were mixed. The Standard & Poor's 500 index slipped 2.35, or 0.20 percent, to 1,185.87, and the Nasdaq composite index rose 2.35, or 0.11 percent, to 2,155.68.

The dollar, whose struggles earlier this week contributed to extreme volatility in other markets, was mixed. Meanwhile, gold prices rose.

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

Financial markets grew more upbeat Thursday as political leaders said they struck an agreement in principle on a massive spending plan to revive the crippled financial system. The Dow Jones industrial average jumped about 200 points on optimism about the bailout, and demand for safe-haven assets remained high but eased slightly as some investors placed bets that a deal would help unclog credit markets.

Stock market investors got a lift when key lawmakers said they would present the $700 billion plan to the Bush administration and hoped for a vote by both houses of Congress within days. Still, some resistance remained from House Republicans as the closing bell on Wall Street rang ahead of a meeting of congressional leaders at the White House.

And after the close of trading, it was clear that plan could still face some obstacles. Stock futures weakened, signaling a lower open Friday, after Sen. Richard Shelby, the top Republican on the Banking Committee, left the White House meeting and said the announced deal "is, obviously, no agreement."

The NYSE DOW closed HIGHER +196.89 +1.82% on Thursday September 25

Sym Last........ ........Change..........
Dow 11,022.06 +196.89 +1.82%
Nasdaq 2,186.57 +30.89 +1.43%
S&P 500 1,209.18 +23.31 +1.97%
30-yr Bond 4.4140% +0.0360

NYSE Volume 5,963,252,500
Nasdaq Volume 1,894,855,120


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,197.02 +101.45 +1.99%
DAX 6,173.03 +120.16 +1.99%
CAC 40 4,226.81 +112.27 +2.73%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 12,006.53 -108.50 -0.90%
Hang Seng 18,934.43 -27.56 -0.15%
Straits Times 2,444.24 -33.36 -1.35%

http://biz.yahoo.com/ap/080925/wall_street.html
Stocks rise on bailout hopes; credit remains tight
Thursday September 25, 6:05 pm ET
By Tim Paradis, AP Business Writer
Stocks jump as investors pin hopes on financial rescue; credit markets ease but remain tight

NEW YORK (AP) -- Financial markets grew more upbeat Thursday as political leaders said they struck an agreement in principle on a massive spending plan to revive the crippled financial system. The Dow Jones industrial average jumped about 200 points on optimism about the bailout, and demand for safe-haven assets remained high but eased slightly as some investors placed bets that a deal would help unclog credit markets.

Stock market investors got a lift when key lawmakers said they would present the $700 billion plan to the Bush administration and hoped for a vote by both houses of Congress within days. Still, some resistance remained from House Republicans as the closing bell on Wall Street rang ahead of a meeting of congressional leaders at the White House.

And after the close of trading, it was clear that plan could still face some obstacles. Stock futures weakened, signaling a lower open Friday, after Sen. Richard Shelby, the top Republican on the Banking Committee, left the White House meeting and said the announced deal "is, obviously, no agreement."

Trading that has been difficult for more than a week is likely to remain so in the coming days.

"The market's going to experience volatility as the terms become known," said Doug Roberts, chief investment strategist at Channel Capital Research.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urged lawmakers Tuesday and Wednesday to quickly sign off on the plan, which they said would help prop up the economy by removing billions of dollars in risky mortgage-related assets from financial firms' balance sheets. Fear of heavy losses on these assets has made banks hesitant to extend credit, which in turn threatens the overall economy by making it harder and more expensive for businesses and consumers to borrow money.

President Bush highlighted what he sees as the urgency in a national address Wednesday night. Major elements are still being worked out, including how to phase in the mammoth cost of the package and whether the government will get an ownership stake in troubled companies.

Alan Lancz, director at investment research group LanczGlobal, said stock market investors were encouraged that the rescue looked more likely than it had earlier in the week. He said the move could help unclog credit markets by allowing banks and investors to place values on assets tied to mortgages.

"How do you establish a floor? Well, this is the bazooka. This is how you establish a floor," he said of the plan's goal of buying up the toxic debt.

Still, some investors had their doubts. Demand eased but remained high for the 3-month Treasury bill, considered the safest short-term investment. Its yield rose to 0.72 percent from 0.49 percent late Wednesday. That means investors are still willing to earn the slimmest of returns in exchange for a safe place to put their money. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.84 percent from 3.81 late Wednesday.

The Dow rose 196.89, or 1.82 percent, to 11,022.06. The gain helped erase some of the losses from heavy selling earlier in the week, though the blue chips still remain down by more than 360 points, or 3.2 percent.

Broader stock indicators also rose Thursday. The Standard & Poor's 500 index advanced 23.31, or 1.97 percent, to 1,209.18 and the Nasdaq composite index rose 30.89, or 1.43 percent, to 2,186.57.

Advancing issues outnumbered decliners by nearly 3 to 1 on the New York Stock Exchange, where consolidated volume came to 5.73 billion shares, compared with 4.66 billion traded Wednesday.

Roberts noted that the market's back-and-forth moves of late might be unnerving for investors but ultimately can leave stocks with little to show for all the volatility.

"Most of this is just oscillating around a straight line," he said, noting that last week's huge daily moves, which also included triple-digit moves in the Dow, left stocks largely unchanged for the week.

The dollar was mixed against other major currencies Thursday, while gold prices fell.

Light, sweet crude for November delivery rose $2.29 to settle at $108.02 a barrel on the New York Mercantile Exchange.

Meanwhile, disappointing readings on employment, housing and demand for big-ticket manufactured goods, as well as a sobering forecast from General Electric Co., underscored the difficulties facing the economy.

The Labor Department said the number of people seeking unemployment benefits increased by 32,000 to a seasonally adjusted 493,000 last week -- the highest level in seven years and well above analysts' expectations of 445,000. Hurricanes Ike and Gustav added about 50,000 new claims in Louisiana and Texas, the department said.

The Commerce Department said sales of new homes fell sharply in August to the slowest pace in 17 years. The average sales price also fell by the largest amount on record. New homes sales dropped by 11.5 percent in August to a seasonally adjusted annual sales rate of 460,000 units, the slowest sales pace since January 1991.

The department also said orders for expensive manufactured goods sank in August by the largest amount in seven months as demand for both airplanes and cars sank. Durable goods orders fell by 4.5 percent last month, far worse than the 1.6 percent decline that economists expected and the biggest drop since a 4.7 percent fall in January.

GE lowered its forecast for third-quarter and full-year earnings, citing unprecedented weakness and volatility in the financial services markets. The stock, which had declined in the early going, finished up $1.09, or 4.4 percent, to $25.68 alongside the gains in the broader market.

The Russell 2000 index of smaller companies rose 7.97, or 1.14 percent, to 705.74.

Overseas, Japan's Nikkei stock average fell 0.90 percent. Britain's FTSE 100 rose 1.99 percent, Germany's DAX index added 1.99 percent, and France's CAC-40 jumped 2.73 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

For the week, which again saw triple-digit moves in the Dow, the blue chip average lost 2.15 percent, the Nasdaq declined 3.98 percent and the Nasdaq fell 3.33 percent.

Financial markets remained on edge Friday after the Bush administration's proposal for a $700 billion banking bailout ran into opposition from Republican lawmakers. Stocks ended mixed, with big financial companies lifting the Dow Jones industrials more than 120 points, but worries about smaller banks and parts of the technology sector taking much of the market lower.

Demand for safe-haven buying in government debt remained high as investors uneasily watched events in Washington, where the Bush administration tried to overcome Republican objections to its rescue package.

The NYSE DOW closed HIGHER +121.07 points +1.10% on Friday September 26

Sym Last........ ........Change..........
Dow 11,143.13 +121.07 +1.10%
Nasdaq 2,183.34 -3.23 -0.15%
S&P 500 1,213.01 +3.83 +0.32%
30-yr Bond 4.3570% -0.0570

NYSE Volume 5,420,079,500
Nasdaq Volume 1,999,503,120


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,088.47 -108.55 -2.09%
DAX 6,063.50 -109.53 -1.77%
CAC 40 4,163.38 -63.43 -1.50%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,893.16 -113.37 -0.94%
Hang Seng 18,682.09 -252.34 -1.33%
Straits Times 2,411.46 -32.78 -1.34%

http://biz.yahoo.com/ap/080926/wall_street.html
Stocks mixed on bailout clash; tech slides
Friday September 26, 4:39 pm ET
By Tim Paradis, AP Business Writer
Stocks stumble through lopsided session after bailout talks unravel; credit remains tight

NEW YORK (AP) -- Financial markets remained on edge Friday after the Bush administration's proposal for a $700 billion banking bailout ran into opposition from Republican lawmakers. Stocks ended mixed, with big financial companies lifting the Dow Jones industrials more than 120 points, but worries about smaller banks and parts of the technology sector taking much of the market lower.

Demand for safe-haven buying in government debt remained high as investors uneasily watched events in Washington, where the Bush administration tried to overcome Republican objections to its rescue package.

GOP lawmakers are concerned about the cost of the proposal, and they balked at the plan after congressional leaders said Thursday they had reached an agreement in principle. Shortly after Friday's opening bell on Wall Street, President Bush said at the White House lawmakers can express doubts but ultimately should "rise to the occasion" and approve a plan to stave off what he sees as an economic calamity.

The rescue is designed to remove billions of dollars of bad mortgages and other now-toxic assets from the books of financial firms in a bid to free up lending. Tight lending conditions make it harder and more expensive for businesses and consumers to borrow money, a headwind for the economy. In a last-minute shake up, some Republican lawmakers wanted an alternative plan under which the government would provide insurance to companies that agree to hold frozen assets, rather than have the U.S. purchase the assets.

Volume was relatively light Friday as many investors chose to just wait. That helped skew some of the movements in the major indexes.

"I think the markets are on pause trying to figure out where this is going to go. Congress is still there," said Mark Coffelt, portfolio manager at Empiric Funds in Austin, Texas. "Right now everyone is a little bit shellshocked."

With no deal in place as trading ended Friday, investors were certainly going to be uneasy throughout the weekend. And there was no way to predict whether Monday morning would bring calmer markets after weeks of intense volatility, or whether the turbulence would accelerate. Even if a deal is reached over the weekend, its terms will determine how the markets start the week.

Credit markets remained strained Friday, though they showed improvement. The yield on the 3-month Treasury bill, considered the safest short-term investment, rose to 0.84 percent from 0.72 percent late Thursday. The lower the yield on a T-bill, the more desperation there is in the market; investors are at times willing to take the slimmest returns to preserve their principal. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.85 percent from 3.84 percent late Thursday.

According to preliminary calculations, the Dow rose 121.07, or 1.10 percent, to 11,143.13. Gains by JPMorgan Chase & Co. and Bank of America Corp. gave support to the 30-stock index. Most of their advance came late in the session as investors placed bets that a deal would emerge from Washington over the weekend.

Broader indicators were mixed. The Standard & Poor's 500 index rose 4.09, or 0.34 percent, to 1,213.27, and the technology-heavy Nasdaq composite index fell 3.23, or 0.15 percent, to 2,183.34.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 1.17 billion shares.

For the week, which again saw triple-digit moves in the Dow, the blue chip average lost 2.15 percent, the Nasdaq declined 3.98 percent and the Nasdaq fell 3.33 percent.

Stocks traded unevenly Friday, with technology shares falling sharply after Research In Motion Ltd. warned late Thursday that its gross margins would contract in the current quarter because of the costs for producing three new BlackBerry models. The stock fell $25.45, or 26 percent, to $72.08.

The market was also uneasy after Washington Mutual Inc. became the largest U.S. bank to fail. The Federal Deposit Insurance Corp. seized WaMu on Thursday and then sold the thrift's banking assets to JPMorgan for $1.9 billion. It was the latest financial firm to collapse under the weight of enormous bad bets on the mortgage market.

Although WaMu's failure was expected, it nonetheless underscored for investors how widespread the problems are in the financial sector.

Coffelt noted, however, that the market appeared to take some comfort from the orderly fall of WaMu. Several analysts praised the move as a wise takeover for JPMorgan. JPMorgan rose $4.78, or 11 percent, to $48.24 and was the biggest decliner among the Dow industrials. WaMu fell $1.53, or 90.3 percent, to 16 cents.

Meanwhile, Bank of America, which last week snapped up Merrill Lynch, rose $2.33, or 6.8 percent, to $36.70.

Bank of America and JP Morgan are now the first and second largest banks U.S. banks, respectively, perhaps offering investors some reassurance about the safety provided by their large asset bases in a market short on liquidity.

But worries about some other banks, including regionals, persisted after the failure of WaMu. Wachovia Corp. fell $3.70, or 27 percent, to $10, while National City Corp. fell $1.28, or 26 percent, to $3.71.

Light, sweet crude fell $1.13 to settle at $106.89 on the New York Mercantile Exchange.

Uncertainty over the bailout package left the dollar mixed against other major currencies. Gold prices rose.

Coffelt said the market would take a hit if a bailout doesn't materialize, though he said the broader fear is that tightness in credit markets would make any decline more severe.

"If it doesn't go through I think the markets probably get slapped -- probably 1,000 points -- but then we'll work our way out of it," he said, referring to a drop the Dow industrials could see.

Still, concerns about the broader economy persist. The Commerce Department said the spring's economic rebound was less robust than previously estimated. Gross domestic product, or GDP, increased at a 2.8 percent annual rate in the April-June quarter. That fell short of the 3.3 percent growth estimated a month ago, but was still better than two previous dismal quarters.

The Russell 2000 index of smaller companies fell 0.95, or 0.13 percent, to 704.79.

Overseas, Japan's Nikkei stock average fell 0.94 percent. Britain's FTSE 100 fell 2.09 percent, Germany's DAX index fell 1.77 percent, and France's CAC-40 fell 1.50 percent.

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

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

 

[bigdog]

The local market hopefully will rise today with this news

http://biz.yahoo.com/ap/080928/financial_meltdown.html

$700B rescue plan finalized; House to vote Monday
Sunday September 28, 6:20 pm ET
By Julie Hirschfeld Davis, Associated Press Writer
Congressional leaders, White House OK $700B bailout plan; House expects to vote on it Monday

WASHINGTON (AP) -- Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration. The biggest U.S. bailout in history won the tentative support of both presidential candidates and goes to the House for a vote Monday.

The plan, bollixed up for days by election-year politics, would give the administration broad power to use taxpayers' money to purchase billions upon billions of home mortgage-related assets held by cash-starved financial firms.

Flexing its political muscle, Congress insisted on a stronger hand in controlling the money than the White House had wanted. Lawmakers had to navigate between angry voters with little regard for Wall Street and administration officials who warned that inaction would cause the economy to seize up and spiral into recession.

A deal in hand, Capitol Hill leaders scrambled to sell it to colleagues in both parties and acknowledged they were not certain it would pass. "Now we have to get the votes," said Sen. Harry Reid, D-Nev., the majority leader.

The final legislation was released Sunday evening. House Republicans and Democrats met privately to review it and decide how they would vote. "This isn't about a bailout of Wall Street, it's a buy-in, so that we can turn our economy around," said House Speaker Nancy Pelosi, D-Calif.

The largest government intervention in financial markets since the Great Depression casts Washington's long shadow over Wall Street. The government would take over huge amounts of devalued assets from beleaguered financial companies in hopes of unlocking frozen credit.

"I don't know of anyone here who wants the center of the economic universe to be Washington," said a top negotiator, Sen. Chris Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee. But, he added, "The center of gravity is here temporarily. ... God forbid it's here any longer than it takes to get credit moving again."

The plan would let Congress block half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification -- and subject to a congressional resolution of disapproval.

Still, the resolution could be vetoed by the president, meaning it would take extra-large congressional majorities to stop it.

Lawmakers who struck a post-midnight deal on the plan with Treasury Secretary Henry Paulson predicted final congressional action might not come until Wednesday.

The proposal is designed to end a vicious downward spiral that has battered all levels of the economy. Hundreds of billions of dollars in investments based on mortgages have soured and cramped banks' willingness to lend.

"This is the bottom line: If we do not do this, the trauma, the chaos and the disruption to everyday Americans' lives will be overwhelming, and that's a price we can't afford to risk paying," Sen. Judd Gregg, the chief Senate Republican in the talks, told The Associated Press. "I do think we'll be able to pass it, and it will be a bipartisan vote."

A breakthrough came when Democrats agreed to incorporate a GOP demand -- letting the government insure some bad home loans rather than buy them. That would limit the amount of federal money used in the rescue.

Another important bargain, vital to attracting support from centrist Democrats, would require that the government, after five years, submit a plan to Congress on how to recoup any losses from the companies that got help.

"This is something that all of us will swallow hard and go forward with," said Republican presidential nominee John McCain. "The option of doing nothing is simply not an acceptable option."

His Democratic rival Barack Obama sought credit for taxpayer safeguards added to the initial proposal from the Bush administration. "I was pushing very hard and involved in shaping those provisions," he said.

Later, at a rally in Detroit, Obama said, "it looks like we will pass that plan very soon."

House Republicans said they were reviewing the plan.

As late as Sunday afternoon, Republicans regarded the deal as "a proposal that is promising in principle, but that is still not final," said Antonia Ferrier, a spokeswoman for Missouri Rep. Roy Blunt, the top House GOP negotiator.

Executives whose companies benefit from the rescue could not get "golden parachutes" and would see their pay packages limited. Firms that got the most help through the program -- $300 million or more -- would face steep taxes on any compensation for their top people over $500,000.

The government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits.

To help struggling homeowners, the plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes.

But Democrats surrendered other cherished goals: letting judges rewrite bankrupt homeowners' mortgages and steering any profits gained toward an affordable housing fund.

It was Obama who first signaled Democrats were willing to give up some of their favorite proposals. He told reporters Wednesday that the bankruptcy measure was a priority, but that it "probably something that we shouldn't try to do in this piece of legislation."

"It's not a bill that any one of us would have written. It's a much better bill than we got. It's not as good as it should be," said Democratic Rep. Barney Frank of Massachusetts, the House Financial Services Committee chairman. He predicted it would pass, though not by a large majority.

Frank negotiated much of the compromise in a marathon series of up-and-down meetings and phone calls with Paulson, Dodd, D-Conn., and key Republicans including Gregg and Blunt.

Pelosi shepherded the discussions at key points, and cut a central deal Saturday night -- on companies paying back taxpayers for any losses -- that gave momentum to the final accord.

An extraordinary week of talks unfolded after Paulson and Ben Bernanke, the Federal Reserve chairman, went to Congress 10 days ago with ominous warnings about a full-blown economic meltdown if lawmakers did not act quickly to infuse huge amounts of government money into a financial sector buckling under the weight of toxic debt.

The negotiations were shaped by the political pressures of an intense campaign season in which voters' economic concerns figure prominently. They brought McCain and Obama to Washington for a White House meeting that yielded more discord and behind-the-scenes theatrics than progress, but increased the pressure on both sides to strike a bargain.

Lawmakers in both parties who are facing re-election are loath to embrace a costly plan proposed by a deeply unpopular president that would benefit perhaps the most publicly detested of all: companies that got rich off bad bets that have caused economic pain for ordinary people.

But many of them say the plan is vital to ensure their constituents don't pay for Wall Street's mistakes, in the form of unaffordable credit and major hits to investments they count on, like their pensions.

Some proponents even said taxpayers could come out as financial winners.

Gregg, R-N.H., said: "I don't think we're going to lose money, myself. We may -- it's possible -- but I doubt it in the long run."

House Financial Services Committee: http://financialservices.house.gov/

House Speaker's Office: http://speaker.gov

 

[James Austin]

The local market hopefully will rise today with this news

http://biz.yahoo.com/ap/080928/financial_meltdown.html

wall st futures flat at present bigdog, perhaps SPI flat today also, because . . . .

A deal in hand, Capitol Hill leaders scrambled to sell it to colleagues in both parties and acknowledged they were not certain it would pass. "Now we have to get the votes," said Sen. Harry Reid, D-Nev., the majority leader.

and

Lawmakers who struck a post-midnight deal on the plan with Treasury Secretary Henry Paulson predicted final congressional action might not come until Wednesday.

 

[acouch]

the bill

http://i.cdn.turner.com/money/2008/images/09/28/ayo08c04_xml.pdf

ac

 

[James Austin]

the bill

http://i.cdn.turner.com/money/2008/images/09/28/ayo08c04_xml.pdf

ac

geepers, who was the poor bugger that typed that up on the weekend

 

[bigdog]

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

Wall Street's worst fears came to pass Monday, when the government's financial bailout plan failed in Congress and stocks plunged precipitously -- hurtling the Dow Jones industrials down nearly 780 points in their largest one-day point drop ever. Credit markets, whose turmoil helped feed the stock market's angst, froze up further amid the growing belief that the country is headed into a spreading credit and economic crisis.

Stunned traders on the floor of the New York Stock Exchange, their faces tense and mouths agape, watched on TV screens as the House voted down the plan in mid-afternoon, and as they saw stock prices tumbling on their monitors. Activity on the floor became frenetic as the "sell" orders blew in.

The Dow told the story of the market's despair. The blue chip index, dropped by hundreds of points in a matter of moments, and by the end of the day had passed by far its previous record for a one-day drop, 684.81, set in the first trading day after the Sept. 11, 2001, terror attacks.

The selling was so intense that just 162 stocks rose on the NYSE -- and 3,073 dropped.

The NYSE DOW closed significantly LOWER -777.68 points -6.98% on Monday September 29

Sym Last........ ........Change..........
Dow 10,365.45 -777.68 -6.98%
Nasdaq 1,983.73 -199.61 -9.14%
S&P 500 1,106.42 -106.59 -8.79%
30-yr Bond 4.1610% -0.1960

NYSE Volume 6,896,981,000
Nasdaq Volume 2,808,100,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,818.77 -269.70 -5.30%
DAX 5,807.08 -256.42 -4.23%
CAC 40 3,953.48 -209.90 -5.04%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,743.61 -149.55 -1.26%
Hang Seng 17,880.68 -801.41 -4.29%
Straits Times 2,361.34 -50.12 -2.08%

http://biz.yahoo.com/ap/080929/wall_street.html
Stocks tumble as bailout plan fails in House
Monday September 29, 4:42 pm ET
By Tim Paradis, AP Business Writer
Stocks plunge as financial bailout plan fails in House vote; Dow falls more than 735 at lows

NEW YORK (AP) -- Wall Street's worst fears came to pass Monday, when the government's financial bailout plan failed in Congress and stocks plunged precipitously -- hurtling the Dow Jones industrials down nearly 780 points in their largest one-day point drop ever. Credit markets, whose turmoil helped feed the stock market's angst, froze up further amid the growing belief that the country is headed into a spreading credit and economic crisis.

Stunned traders on the floor of the New York Stock Exchange, their faces tense and mouths agape, watched on TV screens as the House voted down the plan in mid-afternoon, and as they saw stock prices tumbling on their monitors. Activity on the floor became frenetic as the "sell" orders blew in.

The Dow told the story of the market's despair. The blue chip index, dropped by hundreds of points in a matter of moments, and by the end of the day had passed by far its previous record for a one-day drop, 684.81, set in the first trading day after the Sept. 11, 2001, terror attacks.

The selling was so intense that just 162 stocks rose on the NYSE -- and 3,073 dropped.

It takes an incredible amount of fear to set off such an intense reaction on Wall Street, and the worry now is that with the $700 billion plan fate uncertain, no one knows how the financial sector hobbled by hundreds of billions of dollars in bad mortgage bets will recover. While investors didn't believe that the plan was a panacea, and understood that it would take months for its effects to be felt, most market watchers believed it was a start toward setting the economy right after a credit crisis that began more than a year ago and that has spread overseas.

"Clearly something needs to be done, and the market dropping 400 points in 10 minutes is telling you that," said Chris Johnson president of Johnson Research Group. "This isn't a market for the timid."

The plan's defeat came amid more reminders of how troubled the nation's financial system is -- before trading began came word that Wachovia Corp., one of the biggest banks to struggle due to rising mortgage losses, was being rescued in a buyout by Citigroup Inc. It followed the recent forced sale of Merrill Lynch & Co. and the failure of three other huge banking companies -- Bear Stearns Cos., Washington Mutual Inc. and Lehman Brothers Holdings Inc.; all of them were felled by bad mortgage investments.

And it raised the question: Which banks are next, and how many? The Federal Deposit Insurance Corp. has a list of over 110 banks that were in trouble in the second quarter, and that number surely has grown in the third.

According to preliminary calculations, the Dow fell 777.68, or 6.98 percent, to 10,365.45. The decline also surpasses the 721.56-point intraday decline record also set during the first trading day after the terror attacks. Still, in percentage terms, the decline remained well below the more than 20 percent drops seen on Black Monday of October 1987 and the Depression.

Broader stock indicators also tumbled. The Standard & Poor's 500 index declined 106.85, or 8.81 percent, to 1,106.42.

The technology-heavy Nasdaq composite index fell 199.61, or 9.14 percent, to 1,983.73.

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 snapped back Tuesday after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.

The recovery in stocks wasn't unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from battered banks, investors are left wondering what might restore confidence in lending.

Major stock indexes were almost a sideshow during the session, with the credit markets as the main event. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy.


The NYSE DOW closed HIGHER +485.21 points +4.68% on Tuesday September 30

Sym Last........ ........Change..........
Dow 10,850.66 +485.21 +4.68%
Nasdaq 2,082.33 +98.60 +4.97%
S&P 500 1,164.74 +58.35 +5.27%
30-yr Bond 4.3050% +0.1440

NYSE Volume 6,059,697,500
Nasdaq Volume 2,376,686,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,902.45 +83.68 +1.74%
DAX 5,831.02 +23.94 +0.41%
CAC 40 4,032.10 +78.62 +1.99%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,259.86 -483.75 -4.12%
Hang Seng 18,016.21 +135.53 +0.76%
Straits Times 2,358.91 -2.43 -0.10%

http://biz.yahoo.com/ap/080930/wall_street.html
Stocks surge higher, but credit worries persist
Tuesday September 30, 4:30 pm ET
By Joe Bel Bruno and Tim Paradis, AP Business Writers
Investors snap up beaten down shares after Wall Street's big sell-off, credit concerns linger

NEW YORK (AP) -- Wall Street snapped back Tuesday after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.

The recovery in stocks wasn't unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from battered banks, investors are left wondering what might restore confidence in lending.

Major stock indexes were almost a sideshow during the session, with the credit markets as the main event. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy.

Traders on the floor of the New York Stock Exchange, still stunned from Monday's 778-point rout in the Dow Jones industrial average, warned that the government needs to approve a plan that will sweep away the fears that hobbled the credit markets. While U.S. political leaders have vowed to revisit the issue, the House isn't slated to meet again until Thursday.

"If it doesn't pass, then look out below," said Jason Weisberg, an NYSE trader for Seaport Securities. "It could get ugly."

Though the blue-chip index rose nearly 500 points by late afternoon, the main worry for traders is that a lack of a plan will make it nearly impossible for some companies to fund basic operations like making payroll. Participants in the credit market buy and sell debt that companies use to finance operations.

The benchmark London Interbank Offered Rate, or LIBOR, that banks charge to lend to one another, rose sharply Tuesday, making it more expensive and difficult for consumers and businesses to borrow money. In addition, credit card debt and more than half of adjustable-rate mortgages are tied to LIBOR, so an increase isn't welcome for many consumers.

LIBOR for 3-month dollar loans rose to 4.05 percent from 3.88 percent on Monday. LIBOR for 3-month euro loans, meanwhile, rose to 5.27 percent, from 5.22 percent Monday.

Critics of the bailout package believe that it was too costly and wouldn't have done enough to jump-start lending. To maintain pressure ahead of Thursday's likely vote, President Bush said in a statement from the White House early Tuesday that the damage to the economy will be "painful and lasting" unless Congress passes the bailout measure.

On Wall Street, many traders likely will proceed cautiously while they gauge prospects for resurrecting the bailout effort, which was backed by leaders of both parties.

"I'm not getting the sense that investors are going to be jumping in with both feet until there is some kind of resolution on the plan," said James Maguire, an NYSE floor trader with Christopher J. Forbes. "If there's a no vote, we're going to see a lower overall drift in stocks. It will be a slow bleed."

Traders also will likely focus on how the bloodshed will look on paper. Tuesday marks the final session of the third quarter -- and what is typically the worst month for the stock market -- so some portfolio managers might try to do what they can to dress up their performance. Others might simply wish to dump holdings in an unpopular corners of the market like the financial sector.

At the close, the Dow rose 485.21, or 4.68 percent, to 10,850.66 after falling nearly 7 percent on Monday to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in the blue chip index. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987 and before the Great Depression.

Broader stock indicators also bounced higher. The Standard & Poor's 500 index recovered 58.34, or 5.27 percent, to 1,164.73, and the Nasdaq composite index rose 98.60, or 4.97 percent, to 2,082.33.

The S&P fell 8.79 percent Monday, while the Nasdaq lost 9.14 percent.

The yield on the 3-month Treasury bill rose Tuesday to 0.89 percent from 0.14 percent late Monday. The yield fell Monday as investors clamored for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.83 percent from 3.58 percent late Monday. The dollar rose against other major currencies and gold prices advanced.

While investors focused on what might come from Washington this week, Wall Street was cheered by several economic readings.

A private research group reported that consumer confidence rose unexpectedly in September. The Conference Board said Tuesday its Consumer Confidence Index rose to 59.8 from a revised 58.5 in August; Wall Street had expected a reading of 55.5, according to Thomson/IFR. The reading, which doesn't reflect attitudes following Monday's steep stock market sell-off, remains near a 16-year low.

The Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana, came in at 56.7 compared with 57.9 in August -- a second straight month of a strong reading.

Light, sweet crude rose $4.27 to settle at $100.64 on the New York Mercantile Exchange. Oil fell more than $10 a barrel Monday as investors worried that a weaker economy would curtail demand.

Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to a light 1.02 billion shares.

The Russell 2000 index of smaller companies rose 22.86, or 3.32 percent, to 679.58.

Overseas, Japan's Nikkei stock average fell 4.12 percent. But Hong Kong's Hang Seng index rose 0.76. Britain's FTSE 100 rose 1.74 percent, Germany's DAX index added 0.41 percent, and France's CAC-40 rose 1.99 percent.

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

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

 

[James Austin]

anyone know what time US senate will announce bailout vote tonight?

and,
anyone got a link to live video announcement of vote?

thanks
James

 

[bigdog]

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

The financial markets saw some relative calm Monday as investors uneasily awaited a Senate vote on the banking bailout plan, with Wall Street closing with only modest losses and the credit markets still showing signs of strain. The Dow Jones industrials zigzagged during the session, losint more than 200 points in early trading but closing down about 20 -- a far cry from the huge swings the blue chips saw during the first two sessions of the week.

Many investors were reluctant to make any major moves before the vote expected Wednesday night on a revised version of the plan defeated earlier this week by the House. The new proposal includes tax breaks for businesses and the middle class and increases deposit insurance.

The NYSE DOW closed LOWER -19.59 points -0.18% on Wednesday October 1

Sym Last........ ........Change..........
Dow 10,831.07 -19.59 -0.18%
Nasdaq 2,069.40 -22.48 -1.07%
S&P 500 1,161.06 -5.30 -0.45%
30-yr Bond 4.2480% -0.0570

NYSE Volume 5,788,633,500
Nasdaq Volume 1,935,115,750


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,959.59 +57.14 +1.17%
DAX 5,806.33 -24.69 -0.42%
CAC 40 4,054.54 +22.44 +0.56%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,368.26 +108.40 +0.96%
Hang Seng 18,016.21 +135.53 +0.76%
Straits Times 2,358.91 closed

http://biz.yahoo.com/ap/081001/wall_street.html
Stocks end relatively calm day with modest loss
Wednesday October 1, 4:34 pm ET
By Tim Paradis, AP Business Writer
Wall Street closes relatively quiet session with modest losses, credit markets still strained

NEW YORK (AP) -- The financial markets saw some relative calm Monday as investors uneasily awaited a Senate vote on the banking bailout plan, with Wall Street closing with only modest losses and the credit markets still showing signs of strain. The Dow Jones industrials zigzagged during the session, losint more than 200 points in early trading but closing down about 20 -- a far cry from the huge swings the blue chips saw during the first two sessions of the week.

Many investors were reluctant to make any major moves before the vote expected Wednesday night on a revised version of the plan defeated earlier this week by the House. The new proposal includes tax breaks for businesses and the middle class and increases deposit insurance.

While they waited, the markets absorbed economic data that was a reminder of the impact of the credit crisis that is now more than a year old. In an assessment of the manufacturing sector in September, the Institute for Supply Management revealed a troubling drop in new orders, which portends a continuing slowdown in the months ahead. The trade group's overall index of manufacturing activity fell to 43.5 in September from 49.9 in August. Wall Street had expected a reading of 49.5, according to economists polled by Thomson/IFR.

"We're now seeing in those numbers that we're getting a contraction in economic activity," said Jim Dunigan, managing executive of investments at PNC Wealth Management.

At this point in the credit crisis, weak economic numbers are coming as no surprise to Wall Street -- but September's numbers are expected to be particularly bleak because of the seizing up of the credit markets that occurred during the month. The reports are further reminders of how much pain is being felt in the economy, and the data may well motivate more investors to pull money out of stocks.

But for the moment, the greatest concern on the Street remains the stagnant credit markets.

"We've taken the credit markets for granted much like you do the electricity coming on every day but in this particular case the power grid is down," said Dunigan. "If we don't have a functioning credit market banks aren't lending to each other -- credit is dried up. That ultimately affects economic activity."

Nervousness about debt has made banks hesitant to extend loans; banks have preferred to hold onto their cash. But some analysts and policymakers are worried that drop in lending will curtail economic growth. And the fear paralyzing the credit markets is making it more difficult and expensive for some companies to fund their day-to-day operations, putting basics like payroll at risk.

The London Interbank Offered Rate, or Libor, on overnight dollar loans dropped to 3.79 percent on Wednesday from Tuesday's record 6.88 percent. Libor measures how much banks are charging one another to borrow. Many consumer lending rates, including about half of all U.S. adjustable-rate mortgages, are tied to Libor.

But overnight Libor remains well above the target Fed funds rate of 2 percent, showing that banks are still tending to hoard their cash rather than lend it.

Demand for the safety of government debt increased Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.71 percent from 3.83 percent late Tuesday. The yield on the 3-month T-bill, the safest type of investment, fell to 0.83 percent from 0.88 percent late Tuesday. The decline in yields indicates that investors are willing to accept even modest returns to protect their money.

Financial markets likely will remain nervous until voting on Capitol Hill is complete. According to preliminary calculations, the Dow fell 19.59, or 0.18 percent, to 10,831.07. The blue chip index fell 778 points Monday, its steepest drop in years, after lawmakers rejected the bailout plan, then rallied 485 points Tuesday on hopes party leaders would find the votes to pass the measure.

Broader stock indicators were narrowly lower. The Standard & Poor's 500 index fell 5.30, or 0.45 percent, to 1,161.06, and the Nasdaq composite index fell 22.48, or 1.07 percent, to 2,069.40.

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

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

 

[Kauri]

Washington rescue package main driver; apparently to be voted on "after US7.30PM" tonight. FDIC limits to be increased to 250k as part of package. France says no European bank rescue package planned; France announces the government will buy 30,000 un-built houses to support construction industry(owning 30000 unbuilt houses that no-one wants or can finance..what a bargain... or is it bailout wrapped in different paper??). GE issues $3bn preferred stocks to Berkshire Hathaway (Warren Buffet), will also issue $12bn in common stock to individuals Thursday. Talking heads on TV & pols note mounting anectdotal evidence that credit crunch affecting mains street (E.G. car dealers struggling to finance inventory, sales of Hummers fall 50%).

 

[bigdog]

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

Pessimism about a protracted economic downturn washed over the financial markets Thursday, sending stocks plunging and further tightening the credit markets. Reports on declining factory orders and a seven-year high in jobless claims stoked fears that the government's financial rescue plan won't ward off a recession, and the Dow Jones industrials skidded nearly 350 points.

Investors appeared to be settling in for a prolonged economic winter. The main concern is that the $700 billion bailout plan won't be enough to stimulate growth, and economic reports delivered Thursday show that the U.S. continues to struggle.

The NYSE DOW closed LOWER -348.22 points -3.22% on Thursday October 2

Sym Last........ ........Change..........
Dow 10,482.85 -348.22 -3.22%
Nasdaq 1,976.72 -92.68 -4.48%
S&P 500 1,114.28 -46.78 -4.03%
30-yr Bond 4.1540% -0.0940

NYSE Volume 6,356,569,500
Nasdaq Volume 2,224,295,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,870.34 -89.25 -1.80%
DAX 5,660.63 -145.70 -2.51%
CAC 40 3,963.28 -91.26 -2.25%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 11,154.76 -213.50 -1.88%
Hang Seng 18,211.11 +194.90 +1.08%
Straits Times 2,364.79 +5.88 +0.25%

http://biz.yahoo.com/ap/081002/wall_street.html
Stocks decline on unemployment, factory reports
Thursday October 2, 5:44 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks fall on unemployment claims, factory orders data as investors fear protracted downturn

NEW YORK (AP) -- Pessimism about a protracted economic downturn washed over the financial markets Thursday, sending stocks plunging and further tightening the credit markets. Reports on declining factory orders and a seven-year high in jobless claims stoked fears that the government's financial rescue plan won't ward off a recession, and the Dow Jones industrials skidded nearly 350 points.

Investors appeared to be settling in for a prolonged economic winter. The main concern is that the $700 billion bailout plan won't be enough to stimulate growth, and economic reports delivered Thursday show that the U.S. continues to struggle.

The government said the number of people seeking unemployment benefits rose last week and that demand at the nation's factories has fallen by the largest amount in nearly two years. The market is interpreting the Commerce Department report on factories as a sign that tight credit conditions are hitting manufacturers.

"The economy is what's driving this weakness," said Subodh Kumar, global investment strategist at Toronto-based Subodh Kumar & Associates. "I think now what's going on is a focus on the economic weakness in a whole bunch of areas."

He also said, "the next couple of days are going to be pretty intense politically" as Wall Street girds for another vote on the financial bailout plan. The bill that passed the Senate late Wednesday will be sent to the House as soon as Friday. The latest version of the bill adds $100 billion in tax breaks for businesses and the middle class and raises the limit on federal deposit insurance to $250,000 from $100,000.

Supporters are hoping the sweetened bill will be more palatable to some of the 133 House Republicans who rejected the measure in a vote Monday that took Wall Street, and many on Capitol Hill, by surprise.

Those in favor of the plan to let the government buy billions of dollars in bad mortgage debt and other now-soured assets say it will help unclog the world's credit markets. Banks are fearful of making loans, even to each other, because of worries they won't be repaid. That, in turn, is weighing on the economy, making borrowing more difficult and expensive for businesses and consumers alike.

The credit markets showed some increased strain Thursday. The yield on the 3-month T-bill, the safest type of investment, fell to 0.70 percent from 0.79 percent late Wednesday. The historically low yields indicate investors are willing to accept the smallest of returns to safeguard their money.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.64 percent from 3.74 percent late Wednesday.

The stock market is a leading economic indicator of sorts, because investors tend to buy and sell based on where they believe the economy will be six months or more in the future. Thursday's big drop points to a market increasingly resigned to further economic instability whether or not the bailout plan becomes law.

"There are a lot of people who think regardless of a bailout, there's still this economic data and the horror stories out there," said Todd Salamone, director of trading at Schaeffer's Investment Research. "Certainly, there's a negative psychology."

Investors might get another grim reading about the economy on Friday when the Labor Department releases its September jobs report, one of the most closely watched indicators. The report is expected to show a loss of 100,000 jobs, according to a median estimate from economists. That would be the ninth straight month that the economy has lost jobs.

The Dow fell 348.22, or 3.22 percent, to 10,482.85. The blue chips plunged nearly 778 points Monday, logged a partial rebound Tuesday and finished modestly lower Wednesday; still the Dow has had triple-digit swings every day this week, having fallen more than 200 during Wednesday's trading.

Broader stock indicators also fell sharply Thursday. The Standard & Poor's 500 index fell 46.78, or 4.03 percent, to 1,114.28, and the Nasdaq composite index fell 92.68, or 4.48 percent, to 1,976.72.

Light, sweet crude fell $4.56 to settle at $93.97 a barrel on the New York Mercantile Exchange. Gold and other commodities also declined during the session.

Billionaire investor Warren Buffett said the U.S. has been hit with an "economic Pearl Harbor," and the government must respond quickly. "That sounds melodramatic, but I've never used that phrase before. And this really is one," Buffett said in an appearance on the "The Charlie Rose Show" on PBS stations.

The Labor Department reported Thursday that initial claims for unemployment benefits rose by 1,000 last week to a seasonally adjusted 497,000, above expectations for a 475,000 increase. That's the highest seen since the immediate aftermath of the Sept. 11, 2001, terrorist attacks, and unnerved investors worried about not only about strains in the financial market but also the effect on the broader economy.

Beyond employment, the government reported that orders for manufactured goods fell by 4 percent in August from July. Economists had expected a 2.5 percent decline. It is the biggest drop since a 4.8 percent decline in October 2006.

The dollar was higher against other major currencies, particularly the euro, even after the European Central Bank left interest rates unchanged. Higher interest rates in Europe generally make the euro more attractive to investors than the dollar.

The ECB left its key interest rate unchanged amid concerns over inflation but explored the option of lowering the rate as the financial crisis increasingly affects the continent. The central bank is also weighing a bailout of the region's financial system, similar to what U.S. lawmakers are considering.

That raised the question of whether policymakers globally might be less focused on fighting inflation, and instead trying to come up with short-term solutions to stimulate the economy.

"At some point, you have to face the realities that we have some serious problems and there aren't going to be any quick fixes," said Ryan Larson, head of equity trading at Voyageur Asset Management. "Even if bailouts pass, the fact remains that it might get credit flowing again but won't solve the broader issues out there."

The Russell 2000 index of smaller companies fell 33.92, or 5.05 percent, to 637.67.

Declining issues led advancers by a 3 to 1 margin on the New York Stock Exchange, where consolidated volume came to 6.16 billion shares, up from 5.59 billion on Wednesday.

Overseas, Japan's Nikkei stock average fell 1.88 percent. Britain's FTSE 100 fell 1.80 percent, Germany's DAX index fell 2.51 percent, and France's CAC-40 lost 2.25 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 817.75, or 7.35 percent, at 10,325.38. The Standard & Poor's 500 index finished down 113.78, or 9.38 percent, at 1,099.23. The Nasdaq composite index ended the week down 235.99, or 10.81 percent, at 1,947.39.

The Russell 2000 index finished the week down 85.39, or 12.12 percent, at 619.40.

In the end, congressional approval of the government's $700 billion financial rescue plan Friday did little to lift the financial markets from their growing dejection over the obstacles still facing the economy. Wall Street ended an intensely volatile week with the Dow Jones industrials falling 157 points and the major indexes all suffering big losses.

The credit markets remained stagnant, with no immediate signs of when lending and borrowing would return to levels even approaching normalcy.

Investors dumped stocks late in the session after a big intraday rally, repeating a defensive move seen throughout the yearlong market pullback. As lawmakers voted on the plan, which President Bush quickly signed into law, the Dow advanced more than 300 points. After it passed, the blue chips moved in and out of positive territory.

The NYSE DOW closed LOWER -157.47 points -1.50% on Friday October 3
Sym Last........ ........Change..........
Dow 10,325.38 -157.47 -1.50%
Nasdaq 1,947.39 -29.33 -1.48%
S&P 500 1,099.23 -15.05 -1.35%
30-yr Bond 4.1230% -0.0310

NYSE Volume 6,790,423,000
Nasdaq Volume 2,548,830,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,980.25 +109.91 +2.26%
DAX 5,797.03 +136.40 +2.41%
CAC 40 4,080.75 +117.47 +2.96%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,938.14 -216.62 -1.94%
Hang Seng 17,682.40 -528.71 -2.90%
Straits Times 2,297.12 -66.48 -2.81%

http://biz.yahoo.com/ap/081003/wall_street.html
Stocks end lower amid worries after House OKs plan
Friday October 3, 6:27 pm ET
By Tim Paradis, AP Business Writer
Stocks end lower after House approves financial rescue plan; worries about economy remain

NEW YORK (AP) -- In the end, congressional approval of the government's $700 billion financial rescue plan Friday did little to lift the financial markets from their growing dejection over the obstacles still facing the economy. Wall Street ended an intensely volatile week with the Dow Jones industrials falling 157 points and the major indexes all suffering big losses.

The credit markets remained stagnant, with no immediate signs of when lending and borrowing would return to levels even approaching normalcy.

Investors dumped stocks late in the session after a big intraday rally, repeating a defensive move seen throughout the yearlong market pullback. As lawmakers voted on the plan, which President Bush quickly signed into law, the Dow advanced more than 300 points. After it passed, the blue chips moved in and out of positive territory.

Investors had been anxious for resolution on the government's plan to buy up bad assets from banks and other institutions to shore up the financial industry and help resuscitate credit markets. Trading across markets was turbulent throughout the week as investors tried to determine whether the plan would win approval and what effect it might have if implemented. On Monday, the House's rejection took Wall Street and Capitol Hill by surprise and handed stocks their biggest losses in years.

The Senate subsequently passed a sweetened version of the plan that added tax breaks and raised the limit on federal deposit insurance from $100,000 to $250,000.

But Wall Street has come to realize passage of the plan is not a quick fix.

"We're three weeks into a severe credit crunch and it's causing untold economic damage to the country," said Hank Smith, chief investment officer at Haverford Investments. He said while the bill's passage will help Wall Street, the broader effects of the paralysis in the credit markets have yet to emerge.

"It's fairly reasonable to assume that this should help unfreeze the credit markets but what we don't know is what's happened so far. How much of a dent has it put into the economy?"

The credit markets indicated increased demand for safety. The yield on the three-month Treasury bill, the safest type of investment, fell to 0.50 percent from 0.70 percent late Thursday. Yields have remained low in recent weeks because investors are eager to safeguard their money.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.60 percent from 3.64 percent late Thursday.

The Dow fell 157.47, or 1.50 percent, to 10,325.38 after rising more than 310 points just after the House vote began.

Broader stock indicators also ended lower. The Standard & Poor's 500 index fell 15.05, or 1.35 percent, to 1,099.23, and the Nasdaq composite index fell 29.33, or 1.48 percent, to 1,947.39.

The Russell 2000 index of smaller companies fell 18.27, or 2.87 percent, to 619.40.

Wall Street's decline Friday capped an extraordinary week. On Monday, the Dow tumbled 778 points after the House voted down the financial rescue plan. Then stocks enjoyed a snapback rally Tuesday as investors grew more confident that Washington would assemble some kind of aid; the Dow jumped 485 points. Stocks showed mostly modest moves Wednesday as investors waited for the Senate to take up the bill. Then two-day pullback Thursday and Friday left stocks with huge losses for the week. The Dow lost 7.34 percent -- its worst weekly loss since July 2002.

Meanwhile, the S&P 500 fell 10.8 percent for the week and the Nasdaq declined 9.38 percent.

The coming week marks the one-year anniversary of the peak in the Dow and the S&P 500, while the Nasdaq hit its peak in late October 2007. The Dow is down 27 percent from its high, while the S&P 500 is off 30 percent and the Nasdaq is down 32 percent.

The Dow Jones Wilshire 5000 Composite Index, which measures 5,000 U.S. based companies' stocks, saw an estimated paper loss of about $1.5 trillion for the week, the worst weekly return since the week after trading resumed following the Sept. 11, 2001, terror attacks.

Outside the New York Stock Exchange, traders said the late pullback Friday reflected a pessimism of the past year that there was little underpinning most rallies and therefore it was prudent to lock in profits when possible.

Other traders agreed.

"You're probably seeing a little buy the rumor, sell the news mentality," said Ryan Larson, senior equity trader at Voyageur Asset Management, a subsidiary of RBC Dain Rauscher. Plus, he added, there's a feeling that this plan "isn't a quick fix."

"There are still a lot of problems out there," Larson said.

The bill's approval came as investors digested word that Wells Fargo Co. agreed to buy Wachovia Corp. in a $15.1 billion deal. That cheered Wall Street because, unlike several recent banking tie-ups, it wasn't put together at the behest of regulators or using government money. The agreement upends a plan announced Monday by Citigroup Inc. to acquire Wachovia's banking operations for $2.16 billion, a move orchestrated by the Federal Deposit Insurance Corp. However, Citigroup was demanding that Wachovia honor its agreement. The FDIC said it is standing behind the agreement it made with Citigroup.

Wachovia shares rose $2.89, or 74 percent, to $6.80, while Wells Fargo fell 60 cents, or 1.7 percent, to $34.56. Citigroup fell $4.15, or 18 percent, to $18.35, making it by far the steepest decliner among the 30 stocks that make up the Dow industrials.

Investors also appeared relieved that the government's September employment report wasn't worse, although the Labor Department said payrolls shrank by 159,000, more than the 100,000 economists predicted. The nation's unemployment rate remained flat at 6.1 percent, as expected.

The dollar slipped against most other major currencies, while gold prices fell.

Light, sweet crude fell 9 cents to settle at $93.88 on the New York Mercantile Exchange.

Declining issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 6.5 billion shares, compared with 6.2 billion shares traded Thursday.

Overseas, Japan's Nikkei stock average fell 1.94 percent. Britain's FTSE 100 rose 2.26 percent, Germany's DAX index rose 2.41 percent, and France's CAC-40 rose 2.96 percent.

The Dow Jones industrial average ended the week down 817.75, or 7.35 percent, at 10,325.38. The Standard & Poor's 500 index finished down 113.78, or 9.38 percent, at 1,099.23. The Nasdaq composite index ended the week down 235.99, or 10.81 percent, at 1,947.39.

The Russell 2000 index finished the week down 85.39, or 12.12 percent, at 619.40.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 11,294.13, down 1,052.90 points, at 8.53 percent, for the week. A year ago, the index was at 15,551.90.

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 suffered through another extraordinary and traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points -- their largest one-day point drop -- before recovering to close with a loss of 370. The catalyst for the selling, which also took the Dow below 10,000 for the first time in four years, was investors' growing despair that the spreading credit crisis will take a heavy toll around the world.

Investors have come to the realization that the Bush administration's $700 billion rescue plan and steps taken by other governments won't work quickly to unfreeze the credit markets.

That sent stocks spiraling downward in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel.

The NYSE DOW closed LOWER -369.88 points -3.58% on Monday October 6
Sym Last........ ........Change..........
Dow 9,955.50 -369.88 -3.58%
Nasdaq 1,862.96 -84.43 -4.34%
S&P 500 1,056.89 -42.34 -3.85%
30-yr Bond 3.9420% -0.1810
NYSE Volume 7,885,228,500
Nasdaq Volume 3,502,199,250

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,589.19 -281.15 -5.77%
DAX 5,387.01 -410.02 -7.07%
CAC 40 3,711.98 -368.77 -9.04%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,473.09 -465.05 -4.25%
Hang Seng 16,803.76 -878.64 -4.97%
Straits Times 2,168.32 -128.80 -5.61%

http://biz.yahoo.com/ap/081006/wall_street.html
Dow recovers to close down 370 after plunging 800
Monday October 6, 5:13 pm ET
By Joe Bel Bruno and Tim Paradis, AP Business Writers
Dow plunges 800 before recovering and closing down 370 amid growing fears over credit crisis


NEW YORK (AP) -- Wall Street suffered through another extraordinary and traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points -- their largest one-day point drop -- before recovering to close with a loss of 370. The catalyst for the selling, which also took the Dow below 10,000 for the first time in four years, was investors' growing despair that the spreading credit crisis will take a heavy toll around the world.

Investors have come to the realization that the Bush administration's $700 billion rescue plan and steps taken by other governments won't work quickly to unfreeze the credit markets.

That sent stocks spiraling downward in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel.

"The fact is, people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working."

The selling was so extreme that only 264 stocks rose on the NYSE -- and 2,986 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.

Monday's stock trading extended what has been an exceptional stretch of volatility, in which triple-digit drops in the Dow are becoming almost commonplace; in the past week, the blue chips have fallen more than 1,100 points, or nearly 11 percent. This latest decline indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is shifting to other nations.

"The market view is shifting from looking just at the misery of the financial sector to the global economy," said Georges Ugeux, chairman and chief executive of New York-based Galileo Global Advisors. "There are enough indication that two things are happening: The crisis is spreading to other sectors, and that it is becoming global."

Ugeux believes Monday's rout had little to do with any short-term problems facing the market, such as paralyzed credit markets or ailing financial companies. He believes that, regardless of the late-day rebound in stocks, "the reaction is clearly giving a downtrend and that there is a lack of confidence of investors into the future growth of the U.S. and the world economy."

The Dow fell as much as 800.06, then recovered in erratic trading to a loss of 369.88, or 3.58 percent, to close at 9,955.50, closing below 10,000 for the first time since Oct. 26, 2004. The Dow surpassed its previous record for a one-day point decline -- 778, which the blue chips suffered a week ago when investors feared the bailout package might not pass Congress.

The Dow is down 30 percent from its peak a year ago this week, when it traded as high 14,198.09.

Broader indexes also tumbled. The Standard & Poor's 500 index shed 42.34, or 3.85 percent, to 1,056.89; and the Nasdaq composite index fell 84.43, or 4.34 percent, to 1,862.96. The Russell 2000 index of smaller companies dropped 23.49, or 3.79 percent, to 595.91.

In Asia, the Nikkei 225 closed 4.25 percent lower. Europe's stock markets also declined, with the FTSE-100 down 5.77 percent, Germany's DAX down 7.07 percent, and France's CAC-40 down 9.04 percent.

The global sell-off came after governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits. As the U.S. tries to repair its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.

The Fed also took fresh steps Monday to help ease credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.

Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., said government intervention certainly might help. However, he believes investors are sensing that what's happening in the economy is a shift in the extent to which consumers and businesses take on debt, a change that will take years to play out.

"This is a global deleveraging of many economies," he said. "It might appear that you're going into the abyss where the economy grinds to a halt and the financial system goes into complete disarray. But, what the market is really reading here is that this is a global phenomenon, and when you delever like this, it is a process that takes a very long period of time measured in years, not quarters."

The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill fell to 0.43 percent from late Friday at 0.50 percent. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.

Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.47 percent from 3.60 percent late Friday.

Anthony Sabino, a professor of law and business at St. John's University in New York, said the "market is displaying one of its worst traits with a herd mentality, and investors have an appetite for feeding on fear." He cautions that, while there are deep economic and financial problems being faced, it is still not a nightmare scenario.

"Most certainly, this is not the Great Depression of the 1930s, but (is like) the savings and loan crisis of the 1980s -- and we bailed them out," he said. "Once people catch their breath, they'll see this is the proper analogy and this will breathe life back into banking institutions."

But, most analysts believe that there will be no quick fixes to the current financial crisis. Ryan Jacob, portfolio manager for the Jacob Internet Fund, said he's sensing the market might be getting closer to a short-term bottom but that problems for the economy likely will persist.

He said the passage of the bailout package, billionaire investor Warren Buffett's investment last week in General Electric Co. and even a skirmish between Wells Fargo & Co. and Citigroup Inc. over control of Wachovia Corp. are positive signs.

"We've had some positive anecdotal events in the last week so it's making me a little bit more confident," Jacob said. "These are all signs that make it more likely than not that we're trying to find a near-term bottom."

He's been hunting for bargains lately.

"We had had been a little bit cautious up until really about a month ago," he said. "Over the last few weeks we've been increasing our position levels."

Frederick Dickson, chief market strategist at D.A. Davidson & Co., believes investors are eager for any signs about the well-being of the economy. He doesn't believe that will happen until Wall Street overhauls its expectations for growth of corporate earnings and the overall economy.

"Wall Street at this point is shifting its attention from whether Congress was going to act on the emergency stabilization bill to the realization that the economy is slowing significantly faster than most analysts had expected," he said. "The downturn has shifted from first gear to about third gear in about two weeks."

 

[MrBurns]

There was a huge bounce back from 700 points down, anyone think the bottom may have been reached ?

 

[billhill]

doubt it. look at the US economy not the bailout and all the other crap in the media. big picture tells the story. Americans are rocked and aint goona start spending again for a while whether the bailout or some other plan actually works. Till their economy picks up i doubt the markets will do much but continue sliding. and i think it will get worse before better. it all part of the economic cycle spring clean. gotta clean out the excess and this time their was alot of it. just my .