NYSE Dow Jones finished today at:

[bigdog]

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

The optimism is building on Wall Street.

Financial stocks led Wall Street sharply higher Wednesday on investor hopes the Obama administration will create banks to absorb the bad assets weighing down the financial system.

The Standard & Poor's 500 index, a benchmark for the overall stock market, completed its first four-day rally since late November. The Dow Jones industrial average jumped 201 points.

Financial stocks surged on the notion that the government could take soured debt like defaulting mortgages off the hands of banks and place them in a so-called bad bank to hold toxic assets. Investors have been worrying that banks won't be able to resume more normal levels of lending without somehow dumping or walling off the bad debt that is corroding their balance sheets. And the economy can't recover from a 14-month-old recession without improvements in lending and consumer confidence.


The NYSE DOW closed HIGHER +200.72 points +2.46% on Wednesday January 28
Sym Last........ ........Change..........
Dow 8,375.45 +200.72 +2.46%
Nasdaq 1,558.34 +53.44 +3.55%
S&P 500 874.09 +28.38 +3.36%
30-yr Bond 3.4340% +0.2000

NYSE Volume 7,101,658,500
Nasdaq Volume 2,160,724,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,295.20 +100.79 +2.40%
DAX 4,518.72 +195.30 +4.52%
CAC 40 3,076.01 +121.48 +4.11%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 8,106.29 +45.22 +0.56%
Hang Seng 12,578.60 -79.39 -0.63%
Straits Times 1,766.08 +80.85 +4.80%

http://finance.yahoo.com/news/Stocks-jump-on-reports-of-apf-14186314.html
Stocks jump on reports of plan for bad bank assets

Stocks surge on reports White House is considering absorbing bad bank assets; Dow jumps 201

* Tim Paradis, AP Business Writer
* Wednesday January 28, 2009, 4:42 pm EST

NEW YORK (AP) -- The optimism is building on Wall Street.

Financial stocks led Wall Street sharply higher Wednesday on investor hopes the Obama administration will create banks to absorb the bad assets weighing down the financial system.

The Standard & Poor's 500 index, a benchmark for the overall stock market, completed its first four-day rally since late November. The Dow Jones industrial average jumped 201 points.

Financial stocks surged on the notion that the government could take soured debt like defaulting mortgages off the hands of banks and place them in a so-called bad bank to hold toxic assets. Investors have been worrying that banks won't be able to resume more normal levels of lending without somehow dumping or walling off the bad debt that is corroding their balance sheets. And the economy can't recover from a 14-month-old recession without improvements in lending and consumer confidence.

Robert B. MacIntosh, chief economist at Eaton Vance Investment Management in Boston, said many questions remain about how a plan would work to take up bad assets. He added, though, that financial stocks have been so beaten down a rally isn't a surprise.

"The financials are just begging for good news here," he said.

Bank shares jumped: Wells Fargo & Co. surged 31 percent, Citigroup Inc. jumped 19 percent and Bank of America added 13 percent.

Investors showed little reaction to an afternoon statement from the Federal Reserve on the economy that contained little news. The central bank left interest rates near zero percent after its two-day meeting. Policymakers predict a gradual recovery in the economy will begin later this year but they caution that significant risks remain.

"I don't think there is anything terribly surprising here. I think the surprise, or the good news of the day, was the bad bank proposal," said Jerry Webman, chief economist at Oppenheimer Funds Inc. in New York.

Investors were also more upbeat ahead of a House vote on an $819 billion stimulus plan that contains a mix of new spending and tax cuts. Wall Street is hopeful the stimulus and other measures will help free the economy from its worst recession in decades.

Bill Dwyer, chief investment officer at MTB Investment Advisors in Baltimore, said any steps Washington can take to revive the economy could help the market. He said the plan to help neutralize bad bank assets could speed a recovery.

"We aren't really going to see any great economic news anytime soon so if there is any positive movement in Washington toward the problem, that would stabilize the decline," he said.

According to preliminary calculations, the Dow industrials rose 200.72, or 2.46 percent, to 8,375.45.

Broader stock indicators also rose. The S&P 500 index jumped 28.38, or 3.36 percent, to 874.09. The index last recorded as many straight advances in a five-day run that ended Nov. 28.

The Nasdaq composite index rose 53.44, or 3.55 percent, to 1,558.34.

The Russell 2000 index of smaller companies rose 17.44, or 3.83 percent, to 473.02.

The number of stocks rising outpaced those that fell by more than 6 to 1 on the New York Stock Exchange, where volume came to a light 1.55 billion shares compared with 1.17 billion shares traded Tuesday.

Bond prices tumbled as stocks gained. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.65 percent from 2.53 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.13 percent Tuesday.

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

Light, sweet crude rose 58 cents to settle at $42.16 a barrel on the New York Mercantile Exchange.

The advance in financial stocks gave support to the overall market. CNBC reported Tuesday that the Obama administration is considering a plan to buy bad assets.

Wells Fargo jumped $5, or 31 percent, to $21.19 after the company said it would maintain its dividend. The company reported results that included write-downs to reduce is exposure to the risky assets of Wachovia Corp. Wells Fargo also added to its reserves for future losses. The company acquired Wachovia on Dec. 31.

Other banks charged higher on the notion that Washington could vacuum up some of their bad debt. Citigroup Inc. rose 66 cents, or 19 percent, to $4.21, while Bank of America Corp. rose 89 cents, or 14 percent, to $7.39. State Street Corp. surged $6.15, or 31 percent, to $25.77.

Some analysts attributed the run-up in banks partly to investors buying up those stocks to cover bets they made. Investors who sell a stock "short" are betting a stock would fall. They are forced to step in and buy the stock if it appears they were wrong and could lose money. This buying, in turn, can drive stocks higher.

Investor sentiment has been buoyed this week by somewhat improved corporate results. After weeks dominated by terrible results from the banking industry, investors have welcomed news that some companies were still able to gather profits in the final three months of 2008 despite the weak economy. Companies from United States Steel Corp. to American Express Co. turned in earnings that helped lift stocks moderately Tuesday.

Overseas, Britain's FTSE 100 rose 2.40 percent, Germany's DAX index jumped 4.52 percent, and France's CAC-40 rose 4.11 percent. Japan's Nikkei stock average rose 0.56 percent.

 

[bigdog]

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

Two glaring signs that the economy remains in a deep slump sent stocks reeling Thursday.

News that unemployment claims reached a record high and that new home sales hit a record low forced the major stock indexes to give back all of Wednesday's gains, and then some. The Dow Jones industrial average sank 226 points, or 2.7 percent, while other indicators tumbled more than 3 percent.

Volatility still has a grip on the Street. While stocks had soared Wednesday on hopes that the government will take bad debt off banks' books, investors retreated in response to some harsh reminders that it might be a while before the nation's 14-month-old recession ends, even if banks get more aid.



The NYSE DOW closed LOWER -226.44 points -2.70% on Thursday January 29
Sym Last........ ........Change..........
Dow 8,149.01 -226.44 -2.70%
Nasdaq 1,507.84 -50.50 -3.24%
S&P 500 845.14 -28.95 -3.31%
30-yr Bond 3.5590% +0.1250

NYSE Volume 5,793,641,500
Nasdaq Volume 1,956,829,750

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,190.11 -105.09 -2.45%
DAX 4,428.11 -90.61 -2.01%
CAC 40 3,009.75 -66.26 -2.15%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 8,251.24 +144.95 +1.79%
Hang Seng 13,154.43 +575.83 +4.58%
Straits Times 1,766.72 +0.64 +0.04%

http://finance.yahoo.com/news/Stocks-fall-on-fresh-worries-apf-14202072.html
Stocks fall on fresh worries about economy

Stocks drop as rising jobless claims, falling new home sales point to more economic woes

* Madlen Read and Tim Paradis, AP Business Writers
* Thursday January 29, 2009, 6:03 pm EST

NEW YORK (AP) -- Two glaring signs that the economy remains in a deep slump sent stocks reeling Thursday.

News that unemployment claims reached a record high and that new home sales hit a record low forced the major stock indexes to give back all of Wednesday's gains, and then some. The Dow Jones industrial average sank 226 points, or 2.7 percent, while other indicators tumbled more than 3 percent.

Volatility still has a grip on the Street. While stocks had soared Wednesday on hopes that the government will take bad debt off banks' books, investors retreated in response to some harsh reminders that it might be a while before the nation's 14-month-old recession ends, even if banks get more aid.

The Labor Department said the number of people continuing to receive unemployment benefits reached a seasonally adjusted 4.78 million week ending Jan. 17 -- the highest level on records that go back to 1967. As a proportion of the work force, the total is the highest since August 1983.

Companies across a variety of industries have been slashing their payrolls by the thousands. Starbucks Corp., Eastman Kodak and Allstate Corp. became the latest major employers to announce big job cuts -- 7,000 at Starbucks; 3,500 to 4,500 at Kodak; and 1,000 at Allstate.

"It seems like we've gotten through the financial crisis. Now we're dealing with global synchronized recession," said Brian Battle, vice president of trading at Performance Trust Capital Partners in Chicago.

And as more people lose their jobs, fewer of them are buying new homes. The Commerce Department said home sales plunged 14.7 percent to an adjusted annual rate of 331,000 in December -- the lowest on records going back to 1963. Earlier this week, the National Association of Realtors said existing home sales posted an unexpected increase last month, but the sales were mostly of foreclosed homes.

"This all began as a housing crisis, and clearly, the housing crisis continues," said Nathan Rowader, director of investments at Forward Management. "Bad housing numbers are not going to encourage anyone to be buying stock."

Investors' mood also darkened after companies from Eastman Kodak Co. to chip maker Qualcomm Inc. reported that profits tumbled the final three months of 2008, and the Commerce Department said orders to U.S. factories for big-ticket manufactured goods fell for the fifth straight month in December.

The Dow industrials fell 226.44, or 2.70 percent, to 8,149.01.

Broader stock indicators also sank. The S&P 500 index fell 28.95, or 3.31 percent, to 845.14, and the Nasdaq composite index fell 50.50, or 3.24 percent, to 1,507.84.

The S&P was coming off its first four-day winning streak since last November.

The Russell 2000 index of smaller companies fell 19.78, or 4.18 percent, to 453.24.

The number of stocks falling outpaced advancers by 5-to-1 on the New York Stock Exchange. Consolidated volume came to 4.87 billion shares, down from 6.07 billion Wednesday.

Bond prices sank Thursday after a weaker-than-expected auction of five-year notes. The yield on the benchmark 10-year Treasury note, which moves opposite its price, shot up to 2.87 percent from 2.67 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.23 percent from 0.17 percent Wednesday.

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

Light, sweet crude fell 72 cents to finish at $41.44 a barrel on the New York Mercantile Exchange.

Investors weren't disappointed in all fourth-quarter results -- Colgate-Palmolive, for one, said its earnings rose nearly 20 percent because of lower cuts, higher prices and new products. The consumer products company's shares rose $1.37, or 2.2 percent, to $65.22.

Most corporate results, however, were grim.

Eastman Kodak fell $2.08, or 29 percent, to $4.99 after it reported a $137 million fourth-quarter loss on a big drop in sales of both digital and film-based photography products.

Qualcomm fell $1.69, or 4.6 percent, to $35.13 after reporting a steep drop in its earnings and slashed its forecast. The company, one of the world's largest suppliers of chips for mobile phones, has seen demand fall as customers trim inventories.

Allstate fell $6.14, or 20.7 percent, to $23.50 a day after the insurer posted a loss of $1.13 billion for the fourth quarter.

Starbucks was flat at $9.65, after the coffee retailer posted a two-thirds drop in earnings.

Black & Decker Corp. dropped $8.09, or 20.9 percent, to $30.65 after reporting that its fourth-quarter earnings dropped 77 percent. The maker of power tools forecast first-quarter earnings far below what Wall Street had been expected.

Ford Motor Co. said it lost $5.9 billion in the fourth quarter but that it has no plans to seek federal aid unless economic conditions worsen. The second-largest U.S. automaker said it reached an agreement with the United Auto Workers to end the jobs bank in which laid-off workers get most of their pay. The union already agreed to do so with General Motors Corp. and Chrysler LLC.

Ford fell 8 cents, or 3.9 percent, to $1.95.

Overseas, Japan's Nikkei stock average rose 1.79 percent. Britain's FTSE 100 fell 2.45 percent, Germany's DAX index fell 2.01 percent, and France's CAC-40 fell 2.15 percent.

 

[bigdog]

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


Stocks slumped for a second straight day Friday as investors, already on edge about the worsening economy, were further rattled by a report that Washington's plans to help banks may have hit a snag.

The Dow Jones industrials dropped 4.5 percent over two sessions; broader stock indexes are down more than 5 percent since Wednesday.

Uncertainty about when the economy will improve has investors looking to Washington for answers. With the market particularly worried about the prospects of a big bank failure, investors have been hopeful that the government will soon release details of a wide-reaching plan to help banks rid themselves of their toxic assets. But a CNBC report late Friday cast doubt on the so-called 'bad bank' idea, citing an unnamed industry source as saying the plan has hit significant snags. The news sent stocks down sharply lower in late afternoon trading.

The NYSE DOW closed LOWER -148.15 points -1.82% on Friday January 30
Sym Last........ ........Change..........
Dow 8,000.86 -148.15 -1.82%
Nasdaq 1,476.42 -31.42 -2.08%
S&P 500 825.88 -19.26 -2.28%
30-yr Bond 3.6030% +0.0440

NYSE Volume 6,176,314,000
Nasdaq Volume 2,142,854,500

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,149.64 -40.47 -0.97%
DAX 4,338.35 -89.76 -2.03%
CAC 40 2,973.92 -35.83 -1.19%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,994.05 -257.19 -3.12%
Hang Seng 13,278.21 +123.78 +0.94%
Straits Times 1,746.47 -20.25 -1.15%

http://finance.yahoo.com/news/Stocks-stumble-as-investors-apf-14213178.html

Stocks stumble as investors fear worsening economy

Stocks finish lower as investors fear worsening economy, worry 'bad bank' idea has hit snag

* Sara Lepro, AP Business Writer
* Friday January 30, 2009, 4:57 pm EST

NEW YORK (AP) -- Stocks slumped for a second straight day Friday as investors, already on edge about the worsening economy, were further rattled by a report that Washington's plans to help banks may have hit a snag.

The Dow Jones industrials dropped 4.5 percent over two sessions; broader stock indexes are down more than 5 percent since Wednesday.

Uncertainty about when the economy will improve has investors looking to Washington for answers. With the market particularly worried about the prospects of a big bank failure, investors have been hopeful that the government will soon release details of a wide-reaching plan to help banks rid themselves of their toxic assets. But a CNBC report late Friday cast doubt on the so-called 'bad bank' idea, citing an unnamed industry source as saying the plan has hit significant snags. The news sent stocks down sharply lower in late afternoon trading.

"People were hoping it was coming sooner rather than later," said Anton Schutz, portfolio manager of the Burnham Financial Industries Fund and the Burnham Financial Services Fund. "So many people were anticipating good announcements about the bad bank over the weekend, but now not expecting any good news."

Treasury Secretary Timothy Geithner was meeting Friday with top government officials to develop the administration's plan for overhauling the $700 billion bailout program and improve regulation of the financial system.

Earlier in the day, investors found little solace in a milder-than-expected report on fourth-quarter economic activity. In fact, the report only heightened concerns that the economy is worsening.

Gross domestic product, the widely followed measure of the economy, shrank at a 3.8 percent pace in the final three months of 2008, the Commerce Department reported. That compared with a 0.5 percent decline the previous quarter.

Friday's reading was much better than the 5.4 percent drop economists expected. But many analysts suspect the economy is shrinking at an even faster pace in the first quarter. Weak earnings reports and rising job losses are helping to solidify that belief.

"We expected fourth quarter to be the worst of the recession," said Randy Frederick, director of trading and derivatives at Charles Schwab. "From an investor's perspective, they may see this stronger-than-expected report setting us up for the first quarter to be worse.

"Each time you get a report that indicates that maybe we hadn't bottomed out yet, it prolongs the recovery."

According to preliminary calculations, the Dow Jones industrial average fell 148.55, or 1.82 percent, to 8,000.46. The Standard & Poor's 500 index fell 19.26, or 2.28 percent, to 825.88, and the Nasdaq composite index fell 31.42, or 2.08 percent, to 1,476.42.

The Russell 2000 index of smaller companies fell 9.71, or 2.14 percent, to 443.53.

Declining issues outnumbered advancers by 3 to 1 on the New York Stock Exchange, where volume came to 1.51 billion shares.

Volatility has been high this week, with the market zigzagging on a mix of earnings and economic news as investors try to determine what the rest of 2009 will bring.

On Thursday, the Dow sank 226 points, while other indicators tumbled more than 3 percent, on news that unemployment claims reached a record high and that new home sales hit a record low. This erased all of the gains from the previous day, when stocks soared on hopes that the government will take bad debt off banks' books.

Friday's corporate earnings reports were anything but encouraging.

Evidence that consumers are cutting back on even the most basic of items came as Procter & Gamble Co. said sales in the fourth quarter dipped 3 percent on weakening demand for its products -- which include Tide detergent, Olay skin cream and Crest toothpaste. The company also lowered its earnings projections for the full year, and said it expects sales to fall in the current quarter.

Meanwhile, two of the country's largest oil companies reported feeling the pain of sinking oil prices. Exxon Mobil Corp. said that it surpassed its own record for annual earnings by a U.S. company last year, but saw a big drop in profit during the fourth quarter. Chevron Corp.'s fourth-quarter results also suffered from the late-2008 plunge in oil prices.

Honda Motor Co. slashed its 2009 profit target by more than half as its earnings dropped 90 percent in the latest quarter.

Also Friday, Japanese electronics maker NEC Corp. said it will cut 20,000 jobs worldwide as it reported a $1.46 billion loss for the fourth quarter. The cuts are in addition to big staff reductions announced earlier this week by Starbucks Corp., Eastman Kodak, Allstate Corp. and others.

"The market is a forward-looking indicator, but the market sees nothing good in front of us," said Stu Schweitzer, global markets strategist at J.P. Morgan's Private Bank.

One bright spot came from Amazon.com Inc., which reported late Thursday that its fourth-quarter profit rose 9 percent and easily surpassed analysts' forecasts. The online retailer also provided an optimistic forecast for 2009.

Its shares soared more than 17 percent, adding $8.82 to $58.82.

After rising earlier in the day, Exxon and Chevron turned lower. Exxon closed down 52 cents to $76.48, while Chevron fell 10 cents to $70.52.

Procter & Gamble shares hit a four-year low of $54.24 before plunging $3.72, or 6.4 percent, to close at $54.50.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.85 percent from 2.87 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, was unchanged from late Thursday at 0.23 percent.

The dollar was mixed against other major currencies. Gold prices soared.

Light, sweet crude for March delivery rose 24 cents to settle at $41.68 a barrel on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 3.12 percent. Britain's FTSE 100 fell 0.97 percent, Germany's DAX index dropped 2.03 percent, and France's CAC-40 fell 1.19 percent.

 

[bigdog]

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

Investors worried about the recession have turned to a strategy of cherry-picking stocks -- sending tech shares higher and industrials lower.

The market's concerns Monday were focused on two fronts: the economic stimulus proposal now before the Senate, and a possible plan to give further aid to the nation's banks. Meanwhile, mostly negative economic data and news of more layoffs helped extend the gloomy mood that gave the market its worst January ever.

Department store operator Macy's Inc. spooked investors by announcing it plans to cut 7,000 jobs, or about 4 percent of its work force, and reduce its dividend.


The NYSE DOW closed LOWER -64.11 points -0.80% on Monday February 2
Sym Last........ ........Change..........
Dow 7,936.75 -64.11 -0.80%
Nasdaq 1,494.43 +18.01 +1.22%
S&P 500 825.44 -0.44 -0.05%
30-yr Bond 3.4700% -0.1330

NYSE Volume 5,769,703,500
Nasdaq Volume 2,034,414,120

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,077.78 -71.86 -1.73%
DAX 4,271.04 -67.31 -1.55%
CAC 40 2,930.05 -43.87 -1.48%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,873.98 -120.07 -1.50%
Hang Seng 12,861.49 -416.72 -3.14%
Straits Times 1,705.29 -41.18 -2.36%

http://finance.yahoo.com/news/Tech-stocks-rise-but-broader-apf-14227533.html
Tech stocks rise but broader market declines

Wall Street has a fractious day, with tech stocks rising, energy and industrials falling

* Sara Lepro, AP Business Writers
* Monday February 2, 2009, 5:31 pm EST

NEW YORK (AP) -- Investors worried about the recession have turned to a strategy of cherry-picking stocks -- sending tech shares higher and industrials lower.

The market's concerns Monday were focused on two fronts: the economic stimulus proposal now before the Senate, and a possible plan to give further aid to the nation's banks. Meanwhile, mostly negative economic data and news of more layoffs helped extend the gloomy mood that gave the market its worst January ever.

Department store operator Macy's Inc. spooked investors by announcing it plans to cut 7,000 jobs, or about 4 percent of its work force, and reduce its dividend.

President Barack Obama made a fresh appeal to Congress, saying that "very modest differences" over the stimulus plan should not delay its passage. The stimulus package that passed the House last week without a single Republican vote now goes to the Senate. GOP lawmakers argue that the plan is too expensive and doesn't include adequate tax cuts.

"I think it's got legislative paralysis," David Waddell, senior investment strategist and chief executive of Waddell & Associates said of the market. "Everything occurring right now is predicated upon what the current conversation is in Washington, which makes it a very difficult market to evaluate."

The market was also eyeing reports that Treasury Secretary Timothy Geithner is expected to outline a bank rescue plan next week, said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc.

"The market is hoping for some resolution to the banking crisis," he said. Investors have been concerned that unrelenting loan losses could lead to a major bank failure.

All the uncertainty Monday, which also included still-to-be-released fourth-quarter earnings reports, weighed on the overall market. But tech stocks were one of the few bright spots.

The Nasdaq composite index rose 18.01, or 1.22 percent, to 1,494.43.

"Technology is one of the sectors that people, businesses are always going to need," said Keith Springer, president of Capital Financial Advisory Services. "There's a feeling that corporations are going to continue to invest in technology."

Microsoft Corp. jumped 73 cents, or 4.3 percent, to $17.83, and Intel Corp. added 73 cents, or 5.7 percent, to $13.63.

The Dow Jones industrial average, meanwhile, fell 64.03, or 0.80 percent, to 7,936.83, hurt by sliding industrial, energy and financial stocks. The Standard & Poor's 500 index slipped 0.44, or 0.05 percent, to 825.44. Both indexes had their worst January ever as investors, increasingly uneasy about the economy, gave back the gains from Wall Street's late-2008 rally.

Stocks fell in the early going Monday after the Institute for Supply Management said manufacturing activity improved during January from a record low, but still fell for the 12th straight month as the recession spread around the world.

"People are waiting for indications that things are getting better," said John Massey, senior vice president and portfolio manager at AIG SunAmerica Asset Management. "One better-than-expected report does not make a trend. People have to have more than a hunch that things are going to get better."

Meanwhile, the Commerce Department said personal spending fell for the sixth straight month in December by 1 percent. Analysts had predicted a decline of 0.9 percent. Incomes also dipped, and the personal savings rate shot higher, a sign that consumers remain extremely nervous.

The department also said construction spending fell 1.4 percent in December, slightly worse than the 1.2 percent economists expected.

News of more layoffs further discouraged investors. Besides Macy's, Morgan Stanley may cut up to an additional 1,800 jobs, according to a report in The Wall Street Journal. Morgan Stanley slashed about 7,000 jobs last year.

Analysts expect trading to remain fractious again this week as investors await more details on the stimulus package, as well as the government's January jobs report, due Friday morning.

Investors will also be looking to more corporate earnings reports for an indication of the economy's health. While a few reports have exceeded the market's expectations, the majority have been disappointing.

Toy maker Mattel Inc. said its fourth-quarter profit skidded 46 percent, well below analysts' estimates, as the recession curbed consumer spending.

Health insurer Humana Inc. reported that its fourth-quarter profit dropped 28 percent, driven by higher claim expenses from its stand-alone Medicare prescription drug plans and a plunge in its commercial business.

Mattel plunged $2.29, or 16 percent, to $11.90. Humana jumped $2.20, or 5.8 percent, to $40.13.

Macy's dropped 36 cents, or 4 percent, to $8.59.

Among industrial names, 3M Co. fell $3.17, or 5.9 percent, to $50.62. Energy company ConocoPhillips fell $1.80, or 3.8 percent, to $45.73. And among financial stocks, Bank of America Corp. tumbled 58 cents, or 8.8 percent, to $6.

The Russell 2000 index of smaller companies rose 6.08, or 1.37 percent, to 449.61.

Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where volume came to 1.33 billion shares.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.72 percent from 2.85 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.26 percent from 0.22 percent late Friday.

The dollar was mostly higher against other major currencies, while gold prices fell.

Light, sweet crude fell $1.60 to settle at $40.08 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 fell 1.73 percent, Germany's DAX index fell 1.55 percent, and France's CAC-40 fell 1.48 percent. Japan's Nikkei stock average fell 1.50 percent.

 

[bigdog]

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

Some heartening news on home sales and earnings Tuesday has let Wall Street set aside a little of its angst.

Major stock indexes jumped more than 1 percent Tuesday, and the Dow Jones industrials rose more than 140 points to snap a three-day slide as some of the day's data turned out to be more upbeat than expected. Still, analysts cautioned that the economy will keep showing fresh bruises in the coming months and that stock trading will remain volatile.

The National Association of Realtors said buyers stepped in to snap up properties at steep discounts in December, especially in the South and Midwest. Its seasonally adjusted index of pending sales for preowned homes rose 6.3 percent in the final month of the year from revised figures in November. Wall Street welcomed the news; investors are looking for any signs that the housing industry slide is slowing.

The NYSE DOW closed HIGHER +141.53 points +1.78% on Tuesday February 3
Sym Last........ ........Change..........
Dow 8,078.36 +141.53 +1.78%
Nasdaq 1,516.30 +21.87 +1.46%
S&P 500 838.51 +13.07 +1.58%
30-yr Bond 3.62% +0.15

NYSE Volume 5,988,463,000
Nasdaq Volume 2,121,960,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,164.46 +86.68 +2.13%
DAX 4,374.96 +103.92 +2.43%
CAC 40 2,982.39 +52.34 +1.79%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,825.51 -48.47 -0.62%
Hang Seng 12,776.89 -84.60 -0.66%
Straits Times 1,711.92 +6.63 +0.39%

http://finance.yahoo.com/news/Stocks-jump-following-rebound-apf-14243473.html
Stocks jump following rebound in home sales, better-than-expected corporate profit reports

* Tim Paradis, AP Business Writer
* Tuesday February 3, 2009, 5:53 pm EST

NEW YORK (AP) -- Some heartening news on home sales and earnings Tuesday has let Wall Street set aside a little of its angst.

Major stock indexes jumped more than 1 percent Tuesday, and the Dow Jones industrials rose more than 140 points to snap a three-day slide as some of the day's data turned out to be more upbeat than expected. Still, analysts cautioned that the economy will keep showing fresh bruises in the coming months and that stock trading will remain volatile.

The National Association of Realtors said buyers stepped in to snap up properties at steep discounts in December, especially in the South and Midwest. Its seasonally adjusted index of pending sales for preowned homes rose 6.3 percent in the final month of the year from revised figures in November. Wall Street welcomed the news; investors are looking for any signs that the housing industry slide is slowing.

"The market is encouraged by the more upbeat report on housing, albeit from a low level," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "A key element of the current malaise is housing and credit-related. And the report on home sales suggests that we are making progress on that front."

Stocks also rose on the strength of some corporate earnings. Drugmakers Merck & Co. and Schering-Plough Corp. helped lift the market after their quarterly numbers came in better than expected. Homebuilder D.R. Horton Inc. reported a loss for its latest quarter that was narrower than analysts expected. And shipper UPS Inc. rose on relief its quarterly results weren't worse.

Investors still worried about some reports. Mobile phone maker Motorola Inc. said it lost $3.6 billion last quarter and suspended its dividend.

And financial stocks lagged the broader market after one of the nation's largest banks posted disappointing results. PNC Financial Services Group Inc. said it swung to a loss during the fourth quarter because of charges tied to its recent acquisition of National City Corp. The Pittsburgh-based bank also said it would cut 5,800 jobs following the purchase. PNC shares fell 7.2 percent.

Jim McDonald, director of equity research at Northern Trust, said the day's rally on light volume and in defensive areas like health care and weakness in financials means the market is simply papering over the economy's troubles, not building a base for moving higher.

"What we're seeing in the market today is not the fuel for a sustained rally," he said. "It's too early right now to start to believe that we're going to see evidence of stability in the economic data."

The Dow Jones industrial average rose 141.53, or 1.78 percent, to 8,078.36.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 13.07, or 1.58 percent, to 838.51, and the Nasdaq composite index rose 21.87, or 1.46 percent, to 1,516.30.

The Dow and the S&P 500 had fallen for the past three sessions.

The Russell 2000 index of smaller companies rose 3.29, or 0.73 percent, to 452.90.

Losing stocks outnumbered gainers by 3 to 2 on the New York Stock Exchange, where consolidated volume came to 5.13 billion shares, compared with 4.94 billion traded Monday.

Stocks ended mixed Monday, with the Dow and S&P lower and the Nasdaq higher. The indexes have fallen for four straight weeks on growing worries about the economy. The Dow and S&P each suffered their worst January ever -- dropping more than 8 percent for the month.

Bond prices fell Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.88 percent from 2.72 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.32 percent from 0.26 percent late Monday. The three-month yield is at its highest level since December.

Gayle said investors are pleased to see the rise in the three-month yield because it suggests some fear is evaporating from the market. Since last fall, investors have been pushing into T-bills looking for safety. They were willing to accept even the most modest of yields in return for protection of their money. Falling demand for T-bills suggests investors might be willing to take on more risk in areas like corporate debt and stocks.

"Investors are gradually putting money to work out there," Gayle said. "We're encouraged that although the economy has been beaten down very badly, that there are some signs of improvement."

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

Light, sweet crude rose 70 cents to settle at $40.78 a barrel on the New York Mercantile Exchange.

Investors also took comfort Tuesday from comments from Treasury Secretary Timothy Geithner. He told The Wall Street Journal the U.S. should be ready to spend a lot to send a jolt through the U.S. economy. Otherwise, he said, the U.S. could risk a similar nagging recession like that that has dogged Japan since the 1990s.

Companies reporting results were mixed. Merck rose $1.81, or 6.4 percent, to $30.24, while Schering Plough rose $1.44, or 8.2 percent, to $18.91. D.R. Horton jumped $1.31, or 21 percent, to $7.42, and UPS rose $2.58, or 6.1 percent, to $45.

Motorola fell 50 cents, or 11 percent, to $4.04.

Among financials, PNC Financial fell $2.33, or 7.2 percent, to $29.85. Bank of America Corp. fell 70 cents, or 12 percent, to $5.30.

Regional banks saw some of the biggest selling. SunTrust Banks Inc. fell $1.93, or 16 percent, to $10.02, while Fifth Third Bancorp fell 30 cents, or 14 percent, to $1.79.

Overseas, Britain's FTSE 100 rose 2.13 percent, Germany's DAX index rose 2.43 percent, and France's CAC-40 rose 1.79 percent. Japan's Nikkei stock average fell 0.62 percent.

 

[bigdog]

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

Wall Street is now worrying about the companies usually seen as safe havens.

After an early rally Wednesday, investors succumbed to concerns about disappointing earnings and the market ended the day with a loss. Falling consumer stocks weighed most heavily on the Dow Jones industrial average, which slid 122 points. Meanwhile, the tech-focused Nasdaq composite index showed only a moderate retreat.

Fourth-quarter numbers from Kraft Foods Inc., Walt Disney Co. and Time Warner Inc. provided the latest reminder of the economy's struggles. The weaker-than-expected reports and a profit warning from Costco Wholesale Corp. left investors fearing that consumers are cutting back even more than most analysts thought.

The NYSE DOW closed LOWER -121.70 points -1.51% on Wednesday February 4
Sym Last........ ........Change..........
Dow 7,956.66 -121.70 -1.51%
Nasdaq 1,515.05 -1.25 -0.08%
S&P 500 832.23 -6.28 -0.75%
30-yr Bond 3.6730% +0.0500

NYSE Volume 6,455,215,000
Nasdaq Volume 2,237,698,250

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,228.60 +64.14 +1.54%
DAX 4,492.79 +117.83 +2.69%
CAC 40 3,068.99 +86.60 +2.90%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 8,038.94 +213.43 +2.73%
Hang Seng 13,063.89 +287.00 +2.25%
Straits Times 1,707.39 -4.53 -0.26%

http://finance.yahoo.com/news/Stocks-fall-on-worries-about-apf-14255953.html
Stocks fall on worries about consumer companies

Stocks fall as investors worry about profits at consumer staples companies; Dow falls 122

* Madlen Read and Tim Paradis, AP Business Writer
* Wednesday February 4, 2009, 4:54 pm EST

NEW YORK (AP) -- Wall Street is now worrying about the companies usually seen as safe havens.

After an early rally Wednesday, investors succumbed to concerns about disappointing earnings and the market ended the day with a loss. Falling consumer stocks weighed most heavily on the Dow Jones industrial average, which slid 122 points. Meanwhile, the tech-focused Nasdaq composite index showed only a moderate retreat.

Fourth-quarter numbers from Kraft Foods Inc., Walt Disney Co. and Time Warner Inc. provided the latest reminder of the economy's struggles. The weaker-than-expected reports and a profit warning from Costco Wholesale Corp. left investors fearing that consumers are cutting back even more than most analysts thought.

"Consumer staples have enjoyed relative safety in this environment and now these new revelations are raising questions among investors," said Jack A. Ablin, chief investment officer at Harris Private Bank in Chicago.

The market had rallied early in the day after a better-than-expected reading on the service sector. The Institute for Supply Management said the sector shrank in January at a slower pace than in December. Still, it was the fourth straight month that business activity in services contracted.

The trade association of purchasing executives said its index rose to 42.9 in January from a revised 40.1 in December. Analysts had expected a reading of 39, according to a survey by Thomson Reuters. The ISM's report on the manufacturing sector, issued Monday, similarly came in above expectations even as it signaled continuing weakness.

"There's so much uncertainty right now that investors are looking for any clues that the economy may be starting to stabilize and turn around," said Michael Sheldon, chief market strategist at RDM Financial Group.

Wall Street was also hoping that lawmakers in Washington would soon show further progress on a bill to help revive the economy by boosting spending and lowering taxes.

The Senate is getting closer to passing a $900 billion stimulus plan. A similar plan has already cleared the House.

"Overall, we seem to be having a tug of war between very weak economic data and the prospect of a pickup in growth later this year helped by the upcoming stimulus package and potential help for the housing and financial services industries," Sheldon said.

According to preliminary calculations, the Dow fell 121.70, or 1.51 percent, to 7,956.66.

Broader indicators also fell. The Standard & Poor's 500 index fell 6.28, or 0.75 percent, to 832.23, and the Nasdaq composite index fell 1.25, or 0.08 percent, to 1,515.05.

The Russell 2000 index of smaller companies fell 4.42, or 0.98 percent, to 448.48.

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where volume came to 1.39 billion shares, compared with 1.35 billion shares traded Tuesday.

Trading has been erratic in recent days. Investors coming off the market's worst January ever have been searching for bargains among battered stocks and looking for signs the economy might be bottoming out. The stock market finished Tuesday with a gain, sending the major indexes up more than 1 percent, thanks to reassuring data about pending home sales and better-than-expected earnings reports from companies like drugmakers.

Bond prices were mixed Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.93 percent from 2.88 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, dipped to 0.30 percent from 0.32 percent.

On Tuesday, the three-month yield rose to its highest level since December. The increase indicated some investors were backing out of the safest parts of the market and moving into riskier but higher-yielding areas like corporate debt. Demand is still high for government debt but well off the panicked levels seen in the fall.

The Treasury Department said Wednesday it is bringing back the seven-year note and doubling the number of its 30-year bond auctions as it tries to handle a surging budget deficit projected to top $1 trillion this year.

The dollar was mixed against other major currencies. Gold prices rose.

Light, sweet crude fell 46 cents to settle at $40.32 a barrel on the New York Mercantile Exchange.

The latest corporate profit reports weighed on the market. Kraft posted a fourth-quarter profit drop of 72 percent, as revenue from the Velveeta, Oreo cookies and Maxwell House coffee businesses could not make up for high restructuring costs. The stock fell $2.63, or 9.2 percent, to $26.11.

The media industry posted several downbeat reports as well. Disney said late Tuesday its fourth-quarter earnings fell 32 percent. Time Warner reported a fourth-quarter loss of $16 billion after the conglomerate wrote down the value of its cable, publishing and AOL assets.

Disney fell $1.62, or 7.9 percent, to $19, while Time Warner fell 36 cents, or 3.7 percent, to $9.42.

Costco fell $3.14, or 6.8 percent, to $42.98 after reporting that its January sales fell and after the wholesale club chain warned that its second-quarter results would fall well short of Wall Street's expectations.

Bank stocks fell again as investors worried about what might come from the government's plans to help prop up banks. Investors are worried the steps could hurt shareholders by diluting the value of their stock.

Bank of America Corp. shares fell 60 cents, or 11 percent, to $4.70. The stock traded as low as $4.62, the lowest level in 19 years.

Part of Bank of America's decline came as its shares fell below $5. That triggered selling from some mutual funds prohibited from holding stocks that slip below $5.

Overseas, Britain's FTSE 100 rose 1.54 percent, Germany's DAX index rose 2.69 percent, and France's CAC-40 rose 2.90 percent. Japan's Nikkei stock average rose 2.73 percent.

 

[bigdog]

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

Investors shook off weak economic readings Thursday and placed bets on retail and technology stocks after several companies posted better-than-expected sales and profit reports. The major indexes gained more than 1 percent, including the Dow Jones industrial average, which rose 106 points.

Retailers including Wal-Mart Stores Inc. and Macy's Inc. turned in better-than-expected sales figures for January.

Wal-Mart's sales beat Wall Street's forecasts after the chain drew shoppers focused on necessities like groceries. Macy's, which this week said it would slash 7,000 jobs, on Thursday raised its fourth-quarter and full-year forecasts after reporting its sales.

The NYSE DOW closed HIGHER +106.41 points +1.34% on Thursday February 5
Sym Last........ ........Change..........
Dow 8,063.07 +106.41 +1.34%
Nasdaq 1,546.24 +31.19 +2.06%
S&P 500 845.85 +13.62 +1.64%
30-yr Bond 3.6340% -0.0390

NYSE Volume 7,585,021,500
Nasdaq Volume 2,574,624,750

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,228.93 +0.33 +0.01%
DAX 4,510.49 +17.70 +0.39%
CAC 40 3,066.29 -2.70 -0.09%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,949.65 -89.29 -1.11%
Hang Seng 13,178.90 +115.01 +0.88%
Straits Times 1,704.60 -2.79 -0.16%

http://finance.yahoo.com/news/Stocks-jump-as-retail-tech-apf-14272877.html
Stocks jump as retail, tech stocks advance

Wall Street adds to gains as retailers, technology stocks advance; Dow industrials jump 106

* Madlen Read and Tim Paradis, AP Business Writer
* Thursday February 5, 2009, 5:54 pm EST

NEW YORK (AP) -- Wall Street is getting a little daring once again.

Investors shook off weak economic readings Thursday and placed bets on retail and technology stocks after several companies posted better-than-expected sales and profit reports. The major indexes gained more than 1 percent, including the Dow Jones industrial average, which rose 106 points.

Retailers including Wal-Mart Stores Inc. and Macy's Inc. turned in better-than-expected sales figures for January.

Wal-Mart's sales beat Wall Street's forecasts after the chain drew shoppers focused on necessities like groceries. Macy's, which this week said it would slash 7,000 jobs, on Thursday raised its fourth-quarter and full-year forecasts after reporting its sales.

The industry's overall numbers were still weak as consumers again curtailed their spending, but not as bad as investors feared when they beat retail stocks down in recent months.

"We're being overly pessimistic on things like retailers," said Chris Cordaro, chief investment officer at RegentAtlantic Capital LLC in Morristown, N.J. "People realize you're going to have shop somewhere."

The technology-laden Nasdaq composite index led the major market indicators after Akamai Technologies Inc. said its fourth-quarter earnings rose a better-than-expected 13 percent as more customers signed up for its Internet traffic-management services.

"The economy at some point will recover and when it does, tech is a pretty interesting play," said Subodh Kumar, global investment strategist at Subodh Kumar & Associates in Toronto. "It will likely be one of the first movers."

The reports helped the market overcome a flurry of bad economic news. Unemployment benefits claims rose last week to a 26-year high, and factory orders fell for the fifth straight month in December. However productivity rose by 3.2 percent in the fourth quarter, more than twice what analysts expected.

Investors are bracing for Friday's January employment report from the Labor Department. The monthly reading is one of the most important economic indicators because rising unemployment cuts into how much consumers spend. Consumer spending accounts for more than two-thirds of U.S. economic activity.

"There are some indications tomorrow's unemployment report might not be as bad as expected," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, N.Y.

A poor reading could deliver a big blow to the market, though expectations are low. Economists predict the unemployment rate rose to 7.5 percent in January from 7.2 percent in December. That would be the highest rate in 17 years.

The Dow industrials rose 106.41, or 1.34 percent, to 8,063.07. The Dow fell as much as 111 points early in the session. The blue chips hit their lowest level during trading since Nov. 21, which many investors are hoping will market the bottom in the stock market's decline from its October 2007 high.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 13.62, or 1.64 percent, to 845.85, and the Nasdaq composite index rose 31.19, or 2.06 percent, to 1,546.24.

The Russell 2000 index of smaller companies rose 6.60, or 1.47 percent, to 455.08.

Advancing issues outnumbered losers by about 2 to 1 on the New York Stock Exchange, where volume came to 1.63 billion shares.

Bond prices were mixed Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite to its price, fell to 2.92 percent from 2.94 percent late Wednesday. The yield on the three-month T-bill fell to 0.26 percent from 0.28 percent late Wednesday.

The gains in stocks came as investors again looked to Washington for help on the economy. Wall Street is waiting for a $920 billion economic stimulus plan to pass the Senate. Debate in the Senate continued for the fourth day Thursday.

Financial stocks recovered from early losses and helped lift the market following speculation the government could funnel aid to regional banks. Bank stocks also rose on reports that Treasury Secretary Timothy Geithner and other top officials are nearing completion of a plan to overhaul the government's $700 billion financial rescue program. A Treasury official told The Associated Press that Geithner will deliver a speech on Monday outlining the new plan.

Bank stocks moved higher. JPMorgan Chase & Co. rose 50 cents, or 2.1 percent, to $24.54, and PNC Financial Services Group Inc. rose $1, or 3.5 percent, to $29.83.

Regional banks also rose. Huntington Bancshares Inc. jumped 35 cents, or 24 percent, to $1.79. Regions Financial Corp. rose 33 cents, or 13 percent, to $2.83.

MasterCard Inc. jumped $19.69, or 14 percent, to $159.84 after its fourth-quarter earnings easily beat analysts expectations.

Retailers climbed after issuing their sales reports. Wal-Mart rose $2.14, or 4.6 percent, to $48.56, while Macy's rose 43 cents, or 5.2 percent, to $8.75. Target Corp. rose 95 cents, or 3 percent, to $32.29. Discount clothing retailer Ross Stores Inc. rose $2.38, or 8.4 percent, to $30.63.

Among tech stocks, Akamai rose $2.56, or 18 percent, to $16.73.

The dollar was mostly higher against other major currencies. Gold prices also climbed.

Light, sweet crude rose 85 cents to settle at $41.17 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 0.01 percent, Germany's DAX index rose 0.39 percent, and France's CAC-40 slipped 0.09 percent. Japan's Nikkei stock average fell 1.11 percent.

 

[bigdog]

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

The Dow Jones industrial average closed the week up 279.73, or 3.50 percent, at 8,280.59. The Standard & Poor's 500 index rose 42.72, or 5.17 percent, to 868.60. The Nasdaq composite index rose 115.29, or 7.81 percent, closing at 1,591.71.

Investors have taken another big gamble on the government's plans to help the economy -- hoping that this one will finally work.

All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as Wall Street looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program. The advance helped propel the indexes to their first winning week after four straight weeks of losses, and put the Nasdaq composite in positive territory for the year to date.

The Senate was expected to vote on its version of a stimulus plan that would include a mix of spending and tax cuts. The Senate bill would cost $937 billion; the House already passed a similar version.

The NYSE DOW closed HIGHER +217.52 points +2.70% on Friday February 6
Sym Last........ ........Change..........
Dow 8,280.59 +217.52 +2.70%
Nasdaq 1,591.71 +45.47 +2.94%
S&P 500 868.60 +22.75 +2.69%
30-yr Bond 3.6830% +0.0490

NYSE Volume 7,387,017,000
Nasdaq Volume 2,454,563,750


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,291.87 +62.94 +1.49%
DAX 4,644.63 +134.14 +2.97%
CAC 40 3,122.79 +56.50 +1.84%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 8,076.62 +126.97 +1.60%
Hang Seng 13,655.04 +476.14 +3.61%
Straits Times 1,715.35 +10.75 +0.63%

http://finance.yahoo.com/news/Wall-Street-shrugs-off-apf-14285070.html

Wall Street shrugs off January job losses of 598K

Stocks rise as investors look past January jobs data; Senate vote on stimulus looms

* Tim Paradis, AP Business Writer
* Friday February 6, 2009, 6:12 pm EST

NEW YORK (AP) -- Investors have taken another big gamble on the government's plans to help the economy -- hoping that this one will finally work.

All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as Wall Street looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program. The advance helped propel the indexes to their first winning week after four straight weeks of losses, and put the Nasdaq composite in positive territory for the year to date.

The Senate was expected to vote on its version of a stimulus plan that would include a mix of spending and tax cuts. The Senate bill would cost $937 billion; the House already passed a similar version.

Financial stocks led the market as investors also awaited the government's latest revisions to its lifeline for banks. Treasury Secretary Timothy Geithner and other top officials are close to finishing a plan to overhaul the government's $700 billion financial rescue fund. Geithner is expected to announce the changes in a speech on Monday.

Some investors were worried that the changes would involve nationalizing many banks and, in the process, wiping out shareholders. Many investors are hoping the plan will relax rules requiring businesses to assign a value to all of their assets each quarter. Advocates say altering the rule even temporarily could make it easier for banks to lend without worrying about depleting their cash reserves and running afoul of accounting standards.

Investors waiting for word on the government's plans were unfazed by a terrible employment reading. The Labor Department said U.S. employers slashed 598,000 jobs in January, the most since late 1974. The unemployment rate rose to 7.6 percent, the highest since late 1992.

"All focus right now is now is really on Washington," said Dan Cook, senior market analyst at IG Markets in Chicago. He said investors are hoping the unemployment report was bad enough to goad lawmakers into swift action on the stimulus plan.

Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York, said investors now are wondering "will government stimulus stop this virus that's spreading throughout the country?"

Cook said investors are eager for the stimulus plan to pass even if it takes time to work its way into the economy, as many economists predict.

"We just want to see a plan and have a direction," he said. "We can adjust from there and make moves on the fly."

But analysts caution that the plan won't repair the economy's problems overnight.

"As the realization sets in that this is going to take some time to work its way into the system confidence could wane a bit," said Matt King, chief investment officer for Bell Investment Advisors, in Oakland, Calif. In that case, the market would be following its pattern in recent months as other government steps were unveiled -- early euphoria dissipated as the reality of a troubled economy set in.

The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59 after rising 106 on Thursday.

Broader stock indicators also jumped. The Standard & Poor's 500 index rose 22.75, or 2.69 percent, to 868.60, and the Nasdaq composite index rose 45.47, or 2.94 percent, to 1,591.71.

The day's gains have left the Nasdaq higher for the year; investors have been turning to the index's tech stocks on the belief they will help lead the market higher. The Nasdaq ended the week with a huge 7.81 percent gain, while the Dow was up 3.5 percent and the S&P 500 rose 5.17 percent.

The Russell 2000 index of smaller companies rose 15.62, or 3.43 percent, to 470.70. It rose 6.13 percent for the week.

Advancing issues outnumbered decliners by about 5 to 1 on the New York Stock Exchange, where consolidated volume came to 6.38 billion shares compared with 6.51 billion shares traded Thursday.

On Thursday, the major indexes soared more than 1 percent as Wall Street shrugged off troubling economic reports and searched for bargains among battered retail and technology stocks.

Bond prices were mixed Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.99 percent from 2.92 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.27 percent from 0.26 percent.

The dollar was mostly higher against other major currencies. Gold prices edged higher.

Light, sweet crude fell $1 to $40.17 a barrel on the New York Mercantile Exchange.

Friday's rally reflects fear among some investors that they will miss out on a jump in stocks if the government comes up with the right mix of medicine for the economy, King said. Some of the buying was also likely the result of short covering -- investors who borrowed stock and sold it on expections the market would fall had to buy stock to repay the loans.

Many of the Friday's steepest gains occurred in hard-hit parts of the market like financials and retailers.

Financial stocks rose. Bank of America Corp. jumped $1.29, or 26.7 percent, to $6.13, while JPMorgan Chase & Co. rose $3.09, or 12.6 percent, to $27.63. Smaller banks also rose. Fifth Third Bancorp rose 99 cents, or 60.4 percent, to $2.63. State Street Corp. advanced $2.95, or 10.7 percent, to $30.49.

Among retailers, Macy's Inc. advanced 95 cents, or 10.9 percent, to $9.70.

Overseas, Britain's FTSE 100 rose 1.49 percent, Germany's DAX index rose 2.97 percent, and France's CAC-40 rose 1.84 percent. Japan's Nikkei stock average rose 1.60 percent.

The Dow Jones industrial average closed the week up 279.73, or 3.50 percent, at 8,280.59. The Standard & Poor's 500 index rose 42.72, or 5.17 percent, to 868.60. The Nasdaq composite index rose 115.29, or 7.81 percent, closing at 1,591.71.

The Russell 2000 index, which tracks the performance of small company stocks, rose 27.17, or 6.13 percent, to 470.70.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 8,785.09, up 449.45 points, or 5.39 percent, for the week. A year ago, the index was at 13,418.18.

 

[bigdog]

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

Investors are waiting for Washington to make the next move.

Stocks ended a quiet session with only modest changes Monday as Wall Street sought details of how the government will reshape a rescue plan for the financial industry. Investors are also watching as political leaders scramble to put together an economic stimulus program.

The market is awaiting a Tuesday speech by Treasury Secretary Timothy Geithner outlining President Barack Obama's plan to overhaul the government's $700 billion financial bailout package. Congress passed the measure last fall as the credit markets began to seize up on fears about rising levels of bad debt. Geithner had been scheduled to announce the plan Monday, but the White House pushed back the speech to focus on the stimulus bill.

The NYSE DOW closed LOWER -9.72 points -0.12% on Monday February 9
Sym Last........ ........Change..........
Dow 8,270.87 -9.72 -0.12%
Nasdaq 1,591.56 -0.15 -0.01%
S&P 500 869.89 +1.29 +0.15%
30-yr Bond 3.7060% +0.0230

NYSE Volume 5,675,245,000
Nasdaq Volume 1,909,824,620


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,307.61 +15.71 +0.37%
DAX 4,666.82 +22.19 +0.48%
CAC 40 3,134.87 +12.08 +0.39%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,969.03 -107.59 -1.33%
Hang Seng 13,769.06 +114.02 +0.84%
Straits Times 1,682.34 -33.01 -1.92%

http://finance.yahoo.com/news/Stocks-end-mixed-as-investors-apf-14301780.html
Stocks end mixed as investors look to Washington

Stocks end little changed as investors await details on financial rescue, economic stimulus

* Tim Paradis, AP Business Writer
* Monday February 9, 2009, 5:29 pm EST
NEW YORK (AP) -- Investors are waiting for Washington to make the next move.

Stocks ended a quiet session with only modest changes Monday as Wall Street sought details of how the government will reshape a rescue plan for the financial industry. Investors are also watching as political leaders scramble to put together an economic stimulus program.

The market is awaiting a Tuesday speech by Treasury Secretary Timothy Geithner outlining President Barack Obama's plan to overhaul the government's $700 billion financial bailout package. Congress passed the measure last fall as the credit markets began to seize up on fears about rising levels of bad debt. Geithner had been scheduled to announce the plan Monday, but the White House pushed back the speech to focus on the stimulus bill.

The Senate is expected to pass an $827 billion stimulus bill on Tuesday. The government, however, still faces the challenge of reconciling the Senate bill with the House's $819 billion version that passed earlier. Republicans and Democrats have been at odds over the plan, which is designed to help pull the economy out of the worst recession in decades. The Obama administration is still pressing to have the stimulus measure on the president's desk for signing by the middle of this month.

Federal Reserve Chairman Ben Bernanke is also expected to testify Tuesday at a House Financial Services Committee hearing on the central bank's efforts to revive lending during the financial crisis.

Investors were hesitant to make big moves with so much news expected from Washington in the coming days.

"We saw a lot of buying ahead of the announcements," said Chris Johnson, president of Johnson Research Group. "Investors are simply biding their time to see if those expectations are going to be met."

The Dow Jones industrial average fell 9.72, or 0.12 percent, to 8,270.87. The blue chips fluctuated between gains and losses 49 times during the session.

Broader stock indicators were mixed after a big rally last week. The Standard & Poor's 500 index rose 1.29, or 0.15 percent, to 869.89, and the Nasdaq composite index slipped 0.15, or 0.01 percent, to 1,591.56.

The Russell 2000 index of smaller companies fell 2.76, or 0.59 percent, to 467.94.

Gainers outnumbered losers by about 8 to 7 on the New York Stock Exchange, where volume came to a light 1.26 billion shares.

On Friday, the market largely overlooked a horrible jobs report and rallied in anticipation of the stimulus bill and changes to the financial bailout. The Labor Department said U.S. employers slashed 598,000 jobs in January. That left the unemployment rate at 7.6 percent, the highest level since late 1992.

The Dow industrials ended last week up 3.5 percent, the S&P 500 index rose 5.2 percent and the Nasdaq posted a huge 7.8 percent gain.

"Given that we had a good two-day rally and a strong performance last week, it's not surprising that we would see some softness," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "There is a tug of war between the problems that we know are in front of us and the promise that is expected between the bank rescue package and the stimulus plan."

Bond prices ended mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 2.99 percent from late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.32 percent from 0.27 percent late Friday.

The dollar was mixed against other major currencies. Gold prices fell.

Light, sweet crude fell 61 cents to settle at $39.56 a barrel on the New York Mercantile Exchange.

Johnson cautioned that stocks could give up some of their recent gains even if investors are pleased by changes to the financial rescue fund and if Washington is able to pass the stimulus package.

"If everyone is betting on it, the payout on the other side is going to continue to decline," he said, likening the market's recent rally on predictions of an improved economy to what happens when too many gamblers wager on the same horse.

Amid the anticipation over the government's plans there were stark reminders that an economic recovery is still far off.

Nissan Motor Co. said it will slash 20,000 jobs, or 8.5 percent of its global work force, over the next year to cope with what the Japanese automaker expects will be its first annual loss in nine years.

Meanwhile, Barclays PLC warned that further asset write-downs -- on top of the massive $11.9 billion booked for 2008 -- were likely and said executive directors would not be getting any bonuses. However, Britain's third-largest bank by assets said its 2008 net profit fell only 1 percent, boosted by last September's acquisition of part of failed investment bank Lehman Brothers Holdings Inc.

Financial stocks led the market higher ahead of the latest version of the Treasury Department financial rescue plan. Bank of America Corp. jumped 76 cents, or 12.4 percent, to $6.89, while General Electric Co. rose $1.54, or 13.9 percent, to $12.64. GE has a big finance arm.

Overseas, Britain's FTSE 100 rose 0.37 percent, Germany's DAX index rose 0.48 percent, and France's CAC-40 rose 0.39 percent. Japan's Nikkei stock average dropped 1.33 percent.

 

[bigdog]

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

Investors are frustrated with the government's latest bank bailout plan -- and showing it by unloading stocks. The major stock indexes fell more than 4 percent Tuesday, including the Dow Jones industrial average, which tumbled 382 points. Financial stocks led the market lower, a sign of how concerned Wall Street is about the government's ability to restore the health of the banking industry.

Traders and investors said the lack of specifics from Treasury Secretary Timothy Geithner on how the government will direct more than $1 trillion in public and private support was troubling.

The plan is aimed at restoring proper functioning to credit markets, which seized up over worries about bad debt after the September bankruptcy of Lehman Brothers Holdings Inc. The latest plan calls for a government-private sector partnership to help remove banks' soured assets from their books. It would also boost an effort to unclog the credit markets that govern loans to consumers and businesses.

The NYSE DOW closed LOWER -381.99 points -4.62% on Tuesday February 10
Sym Last........ ........Change..........
Dow 7,888.88 -381.99 -4.62%
Nasdaq 1,524.73 -66.83 -4.20%
S&P 500 827.16 -42.73 -4.91%
30-yr Bond 3.5300% -0.1760

NYSE Volume 8,078,786,000
Nasdaq Volume 2,500,266,000


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,213.08 -94.53 -2.19%
DAX 4,505.54 -161.28 -3.46%
CAC 40 3,020.75 -114.12 -3.64%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,945.94 -23.09 -0.29%
Hang Seng 13,880.64 +111.58 +0.81%
Straits Times 1,703.29 +20.95 +1.25%

http://finance.yahoo.com/news/Stocks-plunge-as-government-apf-14316664.html
Stocks plunge as government unveils bailout plan

Wall Street plunges as government unveils latest plan to support banking system; Dow falls 382

* Tim Paradis, AP Business Writer
* Tuesday February 10, 2009, 5:34 pm EST
NEW YORK (AP) -- Investors are frustrated with the government's latest bank bailout plan -- and showing it by unloading stocks. The major stock indexes fell more than 4 percent Tuesday, including the Dow Jones industrial average, which tumbled 382 points. Financial stocks led the market lower, a sign of how concerned Wall Street is about the government's ability to restore the health of the banking industry.

Traders and investors said the lack of specifics from Treasury Secretary Timothy Geithner on how the government will direct more than $1 trillion in public and private support was troubling.

The plan is aimed at restoring proper functioning to credit markets, which seized up over worries about bad debt after the September bankruptcy of Lehman Brothers Holdings Inc. The latest plan calls for a government-private sector partnership to help remove banks' soured assets from their books. It would also boost an effort to unclog the credit markets that govern loans to consumers and businesses.

"The good news is they are going to spend a trillion dollars, the bad news is they don't know how," said James Cox, managing partner at Harris Financial Group.

"They built this up as being a panacea," he said. "There was so much hope pinned on them to do a good job. The expectations have been so high. It's hard to live up to."

Investors also questioned whether this plan, which followed previous efforts in the final months of 2008, would work. Some selling was to be expected, however, as stocks rose sharply last week ahead of the announcement.

Geithner's speech "basically puts a spotlight on the fact that the government has no idea how to fix the problem," said Jeff Buetow, senior portfolio manager at Portfolio Management Consultants. "People bought on rumor and hope, and now they're selling on reality."

Investors focused on the financial rescue showed little reaction to the Senate's approval of its $838 billion economic stimulus package. The bill must now be reconciled with an $819 billion version passed by the House. Congressional leaders hope to have the bill on President Barack Obama's desk before a recess next week.

"The economy is in deep trouble. The stimulus plan is not very stimulative. It's not addressing the real problem," Buetow said. "We have an insolvent financial system. The government is trying to find a comprehensive way to save it. They can't afford to just throw money at it. That's what they tried to do in the fall and that clearly did not work."

Stocks extended their slide after Federal Reserve Chairman Ben Bernanke didn't elaborate on the plan in testimony at a House Financial Services Committee hearing. Instead, Bernanke said the programs designed to revive the credit markets are showing promise and that any fix to the worst financial crisis since the 1930s would take time to work.

According to preliminary calculations, the Dow industrials fell 381.99, or 4.62 percent, to 7,888.88. It was the lowest close since Nov. 20, when the blue chips finished at their lowest level since March 2003.

Broader stock indicators also tumbled. The Standard & Poor's 500 index fell 42.73, or 4.91 percent, to 827.16, and the Nasdaq fell 66.83, or 4.20 percent, to 1,524.73.

The Russell 2000 index of smaller companies fell 22.17, or 4.74 percent, to 445.77.

Declining issues outnumbered advancers by about 6 to 1 on the New York Stock Exchange, where volume came to 1.76 billion shares.

Bond prices jumped as investors sought the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.83 percent from 2.99 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.31 percent from 0.32 percent late Monday.

The dollar rose against other major currencies. Gold prices also rose.

Light, sweet crude fell $2.01 to settle at $37.55 a barrel on the New York Mercantile Exchange.

Peter Jankovskis, co-chief investment officer at OakBrook Investments, said the government's plan doesn't resolve the question of how much the troubled assets weighing down banks' books are worth. By providing funds to purchase the assets or by buying them outright the government risks hurting banks by paying too little or hurting tax payers by paying too much.

"Valuation is the fundamental issue," Jankovskis said.

Scott Valentin, an analyst at Friedman, Billings, Ramsey & Co. said the government might be playing politics by not proposing measures that would touch off great debate in Washington and meet with public approval. A government takeover of a bank, for example, wouldn't be politically palatable, he said.

"There are some people that believe the government is dancing around the issue of what has to be done and what is politically acceptable," he said.

Valentin also said some of the drop in stocks could be hastened by short sellers -- investors who place bets that a stock will fall.

Short sellers last week snapped up shares of financial stocks to cover their bets in case Geithner's announcement sent stocks higher. Now, those investors can put their pessimistic bets back in place. This can weigh on the price of a stock and exacerbate selling.

Investors are simply left with many questions.

"I think generally we just don't know enough. We just don't know enough of what it all means," said Jon Biele, head of capital markets at Cowen & Co. "It's digestion time."

Most other news only added to investors' worries. The government reported that wholesalers cut back on their inventories in December by the largest amount in 16 years. The reduction means wholesalers ordered fewer new goods, leading to reduced production and potentially more job losses.

The Commerce Department said wholesale inventories plunged by 1.4 percent, nearly double analysts' expectations of 0.8 percent. It also was the fourth straight monthly decline.

Bank stocks saw the biggest selling. Bank of America Corp. fell $1.33, or 19.3 percent, to $5.56, while Wells Fargo & Co. fell $2.71, or 14.2 percent, to $16.35.

Regional banks also showed big drops. Fifth Third Bancorp fell 70 cents, or 24 percent, to $2.19, while Huntington Bancshares Inc. fell 65 cents, or 25 percent, to $1.96. Conglomerate General Electric Co., which has a big finance arm and often trades like a bank stock, fell $1.02, or 8.1 percent, to $11.62.

Principal Financial Group Inc. fell $5.04, or 30 percent, to $11.99 after the insurer posted a fourth-quarter loss on investment and loan losses. The company's report raised fears that the company will be forced to raise cash.

More downbeat corporate news served as unnecessary reminders of just how bad the economic situation remains.

Alcoa Inc. fell 85 cents, or 10 percent, to $7.65 after a ratings agency slashed the aluminum producer's corporate credit rating. Standard & Poor's Ratings Services said it expected the company's credit metrics to deteriorate significantly this year.

General Motors Corp. said it will cut 10,000 salaried jobs in 2009, as part of the restructuring plan the company submitted to Congress late last year. GM fell 13 cents, or 4.6 percent, to $2.70.

Overseas, Britain's FTSE 100 fell 2.19 percent, Germany's DAX index fell 3.46 percent, and France's CAC-40 fell 3.64 percent. Japan's Nikkei stock average fell 0.29 percent.

 

[bigdog]

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

Investors shuttled between optimism and pessimism Wednesday, finally betting that the government might help the economy out of recession after all.

News in late afternoon that key lawmakers agreed on a $789 billion economic stimulus plan sent stocks moderately higher. The advance, which came in a back-and-forth session, came a day after stocks plunged on worries about the government's financial industry bailout plan.

The stimulus measure includes provisions for unemployment benefits, food stamps, health coverage and more. It also includes billions for states facing yawning budget gaps.

The NYSE DOW closed HIGHER +50.65 points +0.64% on Wednesday February 11
Sym Last........ ........Change..........
Dow 7,939.53 +50.65 +0.64%
Nasdaq 1,530.50 +5.77 +0.38%
S&P 500 833.74 +6.58 +0.80%
30-yr Bond 3.45% -0.08

NYSE Volume 6,024,011,000
Nasdaq Volume 2,258,047,000


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,234.26 +21.18 +0.50%
DAX 4,530.09 +24.55 +0.54%
CAC 40 3,027.72 +6.97 +0.23%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,945.94 -23.09 -0.29%
Hang Seng 13,539.21 -341.43 -2.46%
Straits Times 1,721.97 +18.68 +1.10%

http://finance.yahoo.com/news/Stocks-rebound-on-agreement-apf-14327694.html
Stocks end higher on agreement on stimulus bill

Stocks end moderately higher as lawmakers announce deal on $789 bln economic stimulus bill

* Tim Paradis, AP Business Writers
* Wednesday February 11, 2009, 4:44 pm EST

NEW YORK (AP) -- Investors shuttled between optimism and pessimism Wednesday, finally betting that the government might help the economy out of recession after all.

News in late afternoon that key lawmakers agreed on a $789 billion economic stimulus plan sent stocks moderately higher. The advance, which came in a back-and-forth session, came a day after stocks plunged on worries about the government's financial industry bailout plan.

The stimulus measure includes provisions for unemployment benefits, food stamps, health coverage and more. It also includes billions for states facing yawning budget gaps.

Investors have been eager for any signals that the economy could begin to recover. Supporters hope the bill's mix of spending and tax cuts will increase consumer spending, which accounts for more than two-thirds of U.S. economic activity. Spending has stalled since the mid-September bankruptcy of Lehman Brothers Holdings Inc. froze credit markets and deepened the recession.

Washington was again the driver behind the market's moves on Wednesday. A day earlier, investors showed frustration with what they saw as a lack of details from Treasury Secretary Timothy Geithner on how the government plans to direct trillions of dollars in public and private aid to support the ailing financial system. Major stock market indexes tumbled more than 4 percent.

Chief executives of the nation's top banks appeared before a House committee Wednesday to answer questions about how they have put to use more than $160 billion in taxpayer money to date.

The testimony and the stimulus agreement commanded the market's attention.

Anthony Conroy, managing director and head trader for BNY ConvergEx Group, said investors are simply trying to keep ahead of the rush of news about the banking system and the economy.

"I think everybody is trying to get through all this news. Without healthy financials it's very hard to have a healthy economy," he said. "Everybody has to digest all the tidbits of information that are coming out."

According to preliminary calculations, the Dow Jones industrial average rose 50.65, or 0.64 percent, to 7,939.53.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 6.58, or 0.80 percent, to 833.74, and the Nasdaq composite index rose 5.77, or 0.38 percent, to 1,530.50.

The Russell 2000 index of smaller companies rose 2.18, or 0.49 percent, to 447.95.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to a light 1.36 billion shares.

The 50-point rise in the Dow following a 381-point drop the day earlier is "not a strong statement here," said Kim Caughey, equity research analyst at Fort Pitt Capital Group. "More information is what we need. What I mean by that is what exactly has been agreed to with the stimulus plan."

And Wall Street remains nervous about how, exactly, Geithner's financial rescue plan will work out: how it will assess the banks, how it will price their bad assets, and how it will recreate a market for those assets.

Investors "reacted to bad news yesterday. There wasn't more bad news today," Caughey said. "People didn't have a good sleep and say 'Whew, was I wrong yesterday.'"

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.77 percent from 2.82 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.31 percent from 0.30 percent late Tuesday.

 

[bigdog]

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

The last hour saved the day for DOW after falling by more than 245 points in earlier trading

The stock market has made a late-day comeback, hoping that homeowners will get more help with their mortgages.

A Reuters report that the government plans to subsidize troubled homeowners' mortgage payments helped the Dow Jones industrial average pare sharp losses Thursday afternoon and finish down less than 7 points. The Federal Housing Finance Agency declined to comment on the report.

The idea of targeted help for homeowners impressed investors more than the government's $789 billion economic stimulus package and its revised plan to bail out problem banks.

[The NYSE DOW closed LOWER -6.77 points -0.09%on Thursday February 12/B]
Sym Last........ ........Change..........
Dow 7,932.76 -6.77 -0.09%
Nasdaq 1,541.71 +11.21 +0.73%
S&P 500 835.19 +1.45 +0.17%
30-yr Bond 3.4620% +0.0100

NYSE Volume 6,818,301,000
Nasdaq Volume 2,481,243,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,202.24 -32.02 -0.76%
DAX 4,407.56 -122.53 -2.70%
CAC 40 2,964.34 -63.38 -2.09%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,705.36 -240.58 -3.03%
Hang Seng 13,228.30 -310.91 -2.30%
Straits Times 1,684.96 -37.01 -2.15%

http://finance.yahoo.com/news/Stocks-mixed-after-report-of-apf-14346543.html

Stocks mixed after report of mortgage subsidies

Stocks reverse losses to end mixed after report tgovernment will subsidize mortgage payments

* Madlen Read, AP Business Writer
* Thursday February 12, 2009, 5:37 pm EST

NEW YORK (AP) -- The stock market has made a late-day comeback, hoping that homeowners will get more help with their mortgages.

A Reuters report that the government plans to subsidize troubled homeowners' mortgage payments helped the Dow Jones industrial average pare sharp losses Thursday afternoon and finish down less than 7 points. The Federal Housing Finance Agency declined to comment on the report.

The idea of targeted help for homeowners impressed investors more than the government's $789 billion economic stimulus package and its revised plan to bail out problem banks.

"It's one little piece of the puzzle that clears up some of the uncertainty," said Joe Keetle, senior wealth manager at Dawson Wealth Management.

This week has been a turbulent one for stocks, which rallied last week in anticipation of the stimulus package and the financial bailout plan. That rally was erased Tuesday after Treasury Secretary Timothy Geithner said the government will boost lending, determine which banks should get extra funding, and remove toxic assets from banks' books -- but he provided few details about how the plans would work.

And, indeed, many questions remain -- particularly about how the government plans to remove the complex, souring assets sitting on banks' balance sheets. No one knows how big the losses are going to be for banks, investors and taxpayers -- an uncertainty that has been weighing on stocks for months, especially in the financial sector.

"The market is saying, we will give you the capital when we know you've told us the truth about the garbage," said David Darst, chief investment strategist of Morgan Stanley's Global Wealth Management Group.

But the idea of a plan focused on the crux of the economy's problems -- the housing market -- came as at least a temporary relief to investors. If more homeowners are able to pay their mortgages, it would not only help the economy, but also keep mortgage-backed assets from losing more value.

The Dow Jones industrial average slipped 6.77, or 0.09 percent, to 7,932.76, after falling by more than 245 points in earlier trading. The blue-chip index got within 142 points of its Nov. 20 close of 7,552.29, which was a five-and-a-half year low.

"This is a massive reversal," said Craig Peckham, analyst at Jefferies & Co.

Broader stock indicators ended higher. The Standard & Poor's 500 index rose 1.45, or 0.17 percent, to 835.19, and the Nasdaq composite index rose 11.21, or 0.73 percent, to 1,541.71.

Peckham said stocks also got a lift from a report that a House committee might approve the temporary suspension of credit default swap trading. Credit default swaps are essentially insurance policies for bond defaults; problems in that market have led to massive losses for financial services companies -- most notably, the insurer American International Group Inc.

Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where volume came to 1.48 billion shares.

The biggest gainer in the Dow was Coca-Cola, which posted an 18 percent drop in fourth-quarter earnings but topped Wall Street's forecast in terms of adjusted earnings. The soft drink maker also said its case volume grew. Coca-Cola shares rose $3.12, or 7.6 percent, to $44.39.

Another bright spot for the stock market was a new low for the year in oil prices. Light, sweet crude for March delivery sank $1.96, more than 5 percent, to settle at $33.98 a barrel on the New York Mercantile Exchange.

Government bond prices were mostly lower. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.79 percent from 2.76 percent late Wednesday. The yield on the three-month T-bill fell to 0.28 percent from 0.29 percent.

The dollar rose against other major currencies, and gold prices also climbed.

Economic data was mixed Thursday.

The Commerce Department said Thursday that retail sales jumped 1 percent in January, the biggest increase in 14 months, after a 2.7 percent drop in December. Economists polled by Thomson Reuters had predicted that sales fell 0.8 percent last month.

The department also said, however, that businesses cut inventories 1.3 percent in December, the biggest reduction in seven years. The December decline was far steeper than the 0.9 percent decrease analysts had expected; cuts in inventories show that businesses foresee weak demand from customers.

Meanwhile, the Labor Department said first-time claims for unemployment benefits dropped to a seasonally adjusted 623,000, from an upwardly revised figure of 631,000 the previous week. The total came in above the 610,00 claims analysts had been expecting.

And the number of people still continuing to seek unemployment benefits rose to 4.81 million from 4.78 million, the highest since records began in 1967. Economists expected 4.8 million.

Overseas, Japan's Nikkei stock average fell 3.03 percent. Britain's FTSE 100 fell 0.76 percent, Germany's DAX index fell 2.70 percent, and France's CAC-40 fell 2.09 percent.

 

[bigdog]

The US Market is closed on Monday for the President’s Day holiday.

 

[bigdog]

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

The US Market is closed on Monday for the President’s Day holiday.

The DOW weekly decline was 5.2 percent, the S&P 500 ended the week down 4.8 percent, and the Nasdaq finished the week down 3.6 percent.

Investors sent Washington a message this week: They won't commit to stocks until the government commits to a plan.

Stocks ended lower Friday, pushing the Dow Jones industrial average to its lowest close since last November.

The gears are moving in Washington. On Friday, the White House said President Obama will outline steps to stem home foreclosures next Wednesday, and the House passed a $787 billion economic stimulus bill.

[The NYSE DOW closed LOWER -82.35 points -1.04% on Friday February 13
Sym Last........ ........Change..........
Dow 7,850.41 -82.35 -1.04%
Nasdaq 1,534.36 -7.35 -0.48%
S&P 500 826.84 -8.35 -1.00%
30-yr Bond 3.6820% +0.2200

NYSE Volume 5,362,197,500
Nasdaq Volume 2,023,743,875


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,189.59 -12.65 -0.30%
DAX 4,413.39 +5.83 +0.13%
CAC 40 2,997.86 +33.52 +1.13%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,779.40 +74.04 +0.96%
Hang Seng 13,554.67 +326.37 +2.47%
Straits Times 1,705.64 +20.68 +1.23%

http://finance.yahoo.com/news/Stocks-fall-as-investors-cant-apf-14363535.html

Stocks fall as investors can't shake economic woes

Stocks fall as investors crave more details on rescue plans; Dow hits another '09 low

* Madlen Read, AP Business Writer
* Friday February 13, 2009, 5:34 pm EST

NEW YORK (AP) -- Investors sent Washington a message this week: They won't commit to stocks until the government commits to a plan.

Stocks ended lower Friday, pushing the Dow Jones industrial average to its lowest close since last November and leaving it with a weekly decline of 5.2 percent.

The gears are moving in Washington. On Friday, the White House said President Obama will outline steps to stem home foreclosures next Wednesday, and the House passed a $787 billion economic stimulus bill.

Wall Street is focused, though, on lingering uncertainties. The stimulus package -- too big for some, too small for others -- is far from proving itself effective in reviving the economy. Investors also hesitated to get too excited about the upcoming announcement on preventing home foreclosures, after their hopes got dashed earlier in the week.

The bulk of the market's decline this week came Tuesday, when U.S. Treasury Secretary Timothy Geithner said he would assess banks' financial health and remove their toxic assets with the help of the private sector -- but provided few details about how the process would work.

"Until we get this clarity, I think it's just stop and go. I don't think we collapse from here, but I don't think we go much higher," said Peter Cardillo, chief market economist at the brokerage house Avalon Partners Inc.

It's possible some clues will emerge from the meeting of Group of Seven finance ministers. Officials from leading industrial nations are discussing new financial markets rules, concerns about protectionist measures in stimulus plans, and the effect of the financial crisis on poorer countries. But few analysts anticipate major breakthroughs in the group's report Saturday.

A spate of gut-wrenching economic and corporate earnings reports over the past few weeks have also left the market deeply unsettled. On Friday, the University of Michigan delivered the latest dose of gloomy news, reporting that consumer sentiment dropped sharply in February. The economy should rebound eventually, but economists are unsure how much further it will slide in the meantime -- and fund managers don't know yet which companies will come out on top.

With stock prices so low, "you're certainly rewarded for risk-taking. Unfortunately, it's not a great environment to take a lot of risk," said Jack A. Ablin, chief investment officer at Harris Private Bank. "It's a game of chicken, and most of us are chickens."

The Dow fell 82.35, or 1.04 percent, to 7,850.41. It was the lowest close since Nov. 20, when the blue-chip index settled at a five-and-a-half month low of 7,552.29.

U.S. markets are closed Monday for Presidents Day.

Broader stock indicators also fell. The Standard & Poor's 500 index lost 8.35, or 1.00 percent, to 826.84, and the Nasdaq composite index decreased 7.35, or 0.48 percent, to 1,534.36. The S&P 500 ended the week down 4.8 percent, and the Nasdaq finished the week down 3.6 percent.

The Russell 2000 index of smaller companies fell 2.06, or 0.46 percent, to 448.36.

Bond prices declined. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.90 percent from 2.79 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.30 percent from 0.28 percent.

The dollar fell against most other major currencies. Gold prices also declined.

Light, sweet crude rebounded $3.53 to settle at $37.51 a barrel on the New York Mercantile Exchange, after falling to its lowest price this year on Thursday.

Not all companies' quarterly results have disappointed Wall Street.

PepsiCo said its fourth-quarter profit fell, but the soft drink maker's adjusted results met analysts' expectations. Pepsi shares rose 57 cents to $52.57.

Abercrombie & Fitch Co. said its fourth-quarter profit slid 68 percent due to hefty asset impairment and tax costs and dropping sales. But the results, after stripping out one-time items, beat estimates. The teen retailer's shares rose $2.08, or 10 percent, to $22.78.

But the outlook for corporate America remains grim, and layoffs keep piling up.

Toyota Motor Corp., slammed by poor U.S. sales, said it is offering buyouts to about 18,000 workers. The Japanese automaker is also slashing executives' compensation up to 30 percent and cutting production. Toyota's U.S. shares fell $2.01, or 3 percent, to $65.45.

Overseas, Japan's Nikkei stock average rose 0.96 percent. Britain's FTSE 100 fell 0.30 percent, Germany's DAX index rose 0.13 percent, and France's CAC-40 rose 1.13 percent.

 

[bigdog]

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

The US Market is closed on Monday for the President’s Day holiday.

The NYSE DOW closed LOWER -82.35 points -1.04% on Friday February 13


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,134.75 -54.84 -1.31%
DAX 4,366.64 -46.75 -1.06%
CAC 40 2,962.22 -35.64 -1.19%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,750.17 -29.23 -0.38%
Hang Seng 13,455.88 -98.79 -0.73%
Straits Times 1,683.31 -22.33 -1.31%

http://finance.yahoo.com/news/World-markets-fall-as-Japans-apf-14371292.html
Free Stock Symbol Lookup - Scottrade: Leading stock research
World markets fall as Japan's recession deepens

European, most Asian stock markets fall as Japan sinks deeper into recession

* Louise Watt, Associated Press Writer
* Monday February 16, 2009, 12:49 pm EST

LONDON (AP) -- World stock markets fell Monday, after new figures showed Japan's economy contracted at its quickest pace in 35 years and a weekend summit of Group of Seven finance ministers provided few concrete proposals to counter the economic crisis.

Drops in Europe followed losses in Asia, but trading volumes were subdued as U.S. markets remained closed for Presidents Day.

Britain's FTSE 100 closed down 1.3 percent at 4,134.75, Germany's DAX sank 1.1 percent to 4,366.64, and France's CAC 40 dropped 1.2 percent to 2,962.22.

Japan's worse-than-expected fourth quarter GDP numbers were a sobering reminder of the toll the worst economic downturn in decades is having on Asia's export-driven economies. The world's second-biggest economy shrank 3.3 percent from the previous quarter, or at an annual pace of 12.7 percent.

In Europe, financial stocks dragged markets lower. Shares in Lloyds Banking Group were volatile in London following the company's revelation Friday of larger-than-expected losses at recently acquired Halifax-Bank of Scotland and on market fears the combined company may be headed for nationalization. Shares dropped 20 percent in early trading, but regained ground to close down 8.1 percent. Shares had dropped 30 percent on Friday.

Insurance companies also dragged the FTSE 100 down. Legal & General Group Plc fell 10.5 percent, Prudential lost 8 percent and Aviva slipped 7 percent.

"Whereas before people were just selling banks, now they are looking at the risk involved with other financials," said Jane Coffey, head of equities at Royal London Asset Management.

Investors seemed disappointed after finance chiefs from the Group of Seven developed countries finished their meeting in Rome with pledges to work together to boost growth and unemployment, but stopped short of concrete measures.

Increasingly, investors are unconvinced world governments are acting quickly enough to counter the economic crisis, analysts said.

"The global recession is deeper than anticipated. At the same time policy makers are failing to deliver measures to address the problems," said Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong. "It seems that what they're doing is too little too late."

In Asia, Japan's Nikkei 225 stock average edged down 0.4 percent to 7,750.17, and Hong Kong's Hang Seng Index dropped 0.7 percent to 13,455.88. South Korea's Kospi lost 1.4 percent.

India's benchmark tumbled 3.6 percent after the government, proposing its interim budget, offered no new stimulus measures. Markets in Australia and Singapore also retreated.

In Japan, several exporters were hurt by the data showing the economy sank deeper into recession.

The GDP figures represent the steepest drop for Japan since the oil shock of 1974 and outpaced output drops in the U.S. and the euro zone. A survey of economists by Kyodo news agency had projected an 11.6 percent annualized contraction.

"It's clearly very shocking data," said Clive McDonnell, head of Asia strategy at BNP Paribas Securities in Hong Kong. "The drop is certainly beyond our own quite negative expectations. (Japan's) policy response has not been as effective."

Bucking the wider trend, Shanghai's benchmark climbed 3 percent to 5 1/2-month high to extend China's recent really.

Since the start of the year, Shanghai's index has risen more than 31 percent. But analysts say the rise has been driven not by economic fundamentals, but by a surge in bank lending that has sent money flowing into the market.

"The economic fundamentals are not strong enough to support the market's rise," said Zhang Xiang, an analyst for Guodu Securities in Beijing. "The market is in an irrational state, which is not going to last long."

U.S. equity markets are closed Monday for Presidents Day. On Friday, the Dow fell 1 percent to 7,850.41, its lowest close since Nov. 20. The S&P also fell 1 percent, ending its week off 4.8 percent.

In the coming days, investors will be watching President Barack Obama, expected to sign the country's $787 billion economic stimulus measure on Tuesday. He plans to outline steps to stem home foreclosures on Wednesday, though analysts say investor enthusiasm surrounding the pending announcement is fairly low.

Oil prices, which jumped 10 percent last week, traded 47 cents lower at $37.04 for a barrel of light, sweet crude for March delivery. The contract rose $3.53 to settle at $37.51 a barrel on the New York Mercantile Exchange on Friday.

AP writers Jeremiah Marquez in Hong Kong, Tomoko A. Hosaka in Tokyo and researcher Bonnie Cao in Beijing contributed to this report.

 

[bigdog]

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

Investors around the world are betting that even with government stimulus and bailout programs, the global recession will just have to run its course.

The problems that slammed stocks last year -- ailing banks, foundering automakers, tumbling home prices and cash-strapped consumers -- haven't let up. Instead, the issues have festered, and are threatening to push U.S. stocks back to levels not seen since the late 1990s.

As Obama signed his $787 billion stimulus bill and automakers scrambled to come up with restructuring plans, the Dow Jones industrial average closed down 297.81 points, or 3.79 percent, at 7,552.60 -- just 31-hundredths of a point above its post-meltdown Nov. 20

[The NYSE DOW closed LOWER -297.81 points -3.79% on Tuesday February 17
Sym Last........ ........Change..........
Dow 7,552.60 -297.81 -3.79%
Nasdaq 1,470.66 -63.70 -4.15%
S&P 500 789.17 -37.67 -4.56%
30-yr Bond 3.4860% -0.1960

NYSE Volume 6,946,544,000
Nasdaq Volume 2,381,703,50


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,034.13 -100.62 -2.43%
DAX 4,216.60 -150.04 -3.44%
CAC 40 2,875.23 -86.99 -2.94%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,645.51 -104.66 -1.35%
Hang Seng 12,945.40 -510.48 -3.79%
Straits Times 1,637.92 -42.78 -2.55%

http://finance.yahoo.com/news/Stocks-drop-on-worries-about-apf-14389083.html
Stocks drop on worries about economy, automakers

Global stocks sink on growing anxiety about deepening worldwide recession

Madlen Read, AP Business Writer
Tuesday February 17, 2009, 4:39 pm EST

NEW YORK (AP) -- Investors around the world are betting that even with government stimulus and bailout programs, the global recession will just have to run its course.

The problems that slammed stocks last year -- ailing banks, foundering automakers, tumbling home prices and cash-strapped consumers -- haven't let up. Instead, the issues have festered, and are threatening to push U.S. stocks back to levels not seen since the late 1990s.

As Obama signed his $787 billion stimulus bill and automakers scrambled to come up with restructuring plans, the Dow Jones industrial average closed down 297.81 points, or 3.79 percent, at 7,552.60 -- just 31-hundredths of a point above its post-meltdown Nov. 20 close of 7,552.29, which was its lowest close in five-and-a-half years.

The drop on Wall Street, which followed sharp pullbacks on overseas exchanges, brought the Dow within 102 points of the five-year trading low of 7,449.37 it reached last November, when investor sentiment was also sliding. The Standard & Poor's 500, index which fell 37.67, or 4.56 percent, to 789.17, came with 48 points of its 11-year low of 741.02.

With the way the market has been trading, those milestones could be breached in one or two sessions.

"We don't think the recession's over until at least the middle of the year, and that's even starting to seem very early," said JPMorgan equities anayst Thomas J. Lee, adding that the market's worries are "nothing new -- the magnitudes are worse."

The stock market is usually regarded as a forward-looking mechanism, but Lee pointed out that about one-third of the time, the S&P recovered around the same time as the economy.

"I'm tilting toward thinking we're going to have lows in mid-July," Lee said. "In the meantime, we're stuck in a range."

Wall Street is waiting for more specifics from the government on its various efforts to more adequately assess when to expect growth again. Obama is scheduled to discuss a program Thursday on preventing foreclosures, but investors are particularly anxious for details from the Treasury Department about its new rescue plan for the troubled banking sector.

Over the weekend, a meeting of Group of Seven finance ministers failed to produce any specific steps to revive the global financial system, either.

"The government has their hand on the tiller. They're steering. And that's the problem -- the markets are not confident the proper course has been set yet," said Henry Herrmann, chief executive officer at investment management firm Waddell & Reed.

The Nasdaq composite index fell 63.70, or 4.15 percent, to close at 1,470.66.

The decline in U.S. stocks occurred alongside a retreat in markets overseas. Japan's Nikkei stock average fell 1.4 percent; Britain's FTSE 100 fell 2.43 percent; Germany's DAX index fell 3.44 percent; and France's CAC-40 fell 2.94 percent.

 

[bigdog]

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

The Dow Jones industrial average closed the week down 484.74, or 6.2 percent, at 7,365.67. The Standard & Poor's 500 index fell 56.79, or 6.9 percent, to 770.05. The Nasdaq composite index fell 93.13, or 6.1 percent, closing at 1,441.23.

Wall Street ended another terrible week Friday, leaving major indexes down more than 6 percent as investors worried that the recession will persist for at least the rest of the year and that government intervention will do little to hasten a recovery.

Investors shaved 100 points off the Dow Jones industrial average just a day after the market's best-known indicator dropped to its lowest level since the depths of the last bear market, in 2002. Stocks of struggling financial companies were among the hardest hit.

The Standard & Poor's 500 index, the barometer most closely watched by market pros, came close to its lowest point in nearly 12 years.

The NYSE DOW closed LOWER -100.28 points -1.34% on Friday February 20
Sym Last........ ........Change..........
Dow 7,365.67 -100.28 -1.34%
Nasdaq 1,441.23 -1.59 -0.11%
S&P 500 770.05 -8.89 -1.14%
30-yr Bond 3.5650% -0.1230

NYSE Volume 9,522,299,000
Nasdaq Volume 2,573,722,500


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,889.06 -129.31 -3.22%
DAX 4,014.66 -200.55 -4.76%
CAC 40 2,750.55 -122.05 -4.25%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,416.38 -141.27 -1.87%
Hang Seng 12,699.17 -324.19 -2.49%
Straits Times 1,594.94 -34.41 -2.11%

Major indexes fall more than 6 percent for week

Wall Street ends another terrible week; major indexes drop by more than 6 percent

* Tim Paradis, AP Business Writer
* Friday February 20, 2009, 7:32 pm EST

NEW YORK (AP) -- Wall Street ended another terrible week Friday, leaving major indexes down more than 6 percent as investors worried that the recession will persist for at least the rest of the year and that government intervention will do little to hasten a recovery.

Investors shaved 100 points off the Dow Jones industrial average just a day after the market's best-known indicator dropped to its lowest level since the depths of the last bear market, in 2002. Stocks of struggling financial companies were among the hardest hit.

The Standard & Poor's 500 index, the barometer most closely watched by market pros, came close to its lowest point in nearly 12 years.

"Right now, more than a crisis in mortgages or in housing, we have a crisis in confidence. That is biggest problem in trying to analyze the current market," said James Stack, president of market research firm InvesTech Research in Whitefish, Mont. "You cannot analyze psychology."

Wall Street has been sinking lower as investors come to terms with the fact that the optimism behind a late-2008 rally was clearly unfounded. Companies' forecasts for this year, on top of a dismal series of fourth-quarter earnings reports, pounded home the reality that no one can determine when the recession will end.

"It was a market that was built on that hope, and what we're seeing now is an unwinding of that," said Todd Salamone, director of trading and vice president of research at Schaeffer's Investment Research in Cincinnati, of the rally from late November to early January.

The disappointment seen this week arose from the market's growing recognition that the Obama administration's multibillion-dollar stimulus and bailout programs are unlikely to turn the economy around anytime soon.

"There were a lot of people that were banking on Washington to get us out of this. I don't know if there is anything Washington can do," Salamone said. He said the global economy is going through the tedious process of reducing borrowing and working through bad debt -- something government help can't speed up.

With the week erasing whatever shreds of hope the market had, there is virtually no chance of a rally on Wall Street. What the market might see is a blip upward -- but blips tend to evaporate quickly.

That's what happened Friday. Stocks erased some of their losses after White House press secretary Robert Gibbs doused fears that the government would nationalize crippled banks. Investors who worried about seeing their shares wiped out by a government takeover welcomed the news, but it didn't ease broader concerns about the economy.

The Dow Jones industrials briefly went into positive territory, but quickly turned down again.

Salamone said investors had been too hopeful in late 2008 and at the start of this year that the new administration would be able to swiftly disentangle the economy.

The Dow industrials fell 100.28 points, or 1.3 percent, to 7,365.67 after earlier falling more than 215 points. On Thursday, the Dow broke through its Nov. 20 low of 7,552.29, and closed at its lowest level since Oct. 9, 2002.

The Dow's 6.2 percent slide for the week was its worst performance since the week ended Oct. 10, when it lost 18.2 percent.

The Standard & Poor's 500 index on Friday fell 8.89, or 1.14 percent, to 770.05. The benchmark most watched by traders came within less than 2 points of its Nov. 20 close of 752.44, which was its lowest since April 1997. It remains above its Nov. 21 trading low of 741.02.

The Nasdaq composite index fell 1.59, or 0.11 percent, to 1,441.23.

For the week, the S&P fell 6.9 percent, while the Nasdaq lost 6.1 percent.

Declining issues outnumbered advancers by about 3 to 1 on the New York Stock Exchange, where consolidated volume came to a heavy 8.12 billion shares as options contracts expired. Volume on Thursday came to 5.64 billion shares.

The Russell 2000 index of smaller companies fell 5.75, or 1.4 percent, to 410.96.

Other world indicators also fell sharply. Britain's FTSE 100 declined 3.2 percent, Germany's DAX index tumbled 4.8 percent, and France's CAC-40 fell 4.3 percent.

Shares of financial bellwethers Citigroup Inc. and Bank of America Corp. fell on worries the government will have to take control of them. Citigroup tumbled 22 percent, while Bank of America fell 3.6 percent. The stocks were down as much as 36 percent during the session.

The fears about the banks are hurting shareholders of those companies and dragging down the rest of the market because the broader economy can't function properly when banks are unable to lend at more normal levels.

"Financing is the blood which runs through our nation's veins. It's what keeps us alive," said Lawrence Creatura, a portfolio manager at Federated Clover Investment Advisors.

He said the talk of nationalizing banks only underscores the troubles with the economy.

"Things are clearly not normal. It's not healthy. The patient was on life support, and now what we're talking about getting out the paddle with respect to nationalization," Creatura said.

As investors dropped out of stocks, safer investments like Treasury debt and gold rose. The price of the benchmark 10-year Treasury note rose sharply, sending its yield down to 2.79 percent from 2.86 percent. The yield on the three-month T-bill, considered one of the safest investments, fell to 0.26 percent from 0.30 percent late Thursday.

Gold broke above $1,000, closing at $1,002.20 an ounce on the New York Mercantile Exchange.

Investors are looking desperately at any safe havens simply because the stock market, which rises and falls on investors' expectations for the future, sees only trouble ahead.

"There's still a big fear factor syndrome," said Michael Strauss, chief economist and market strategist at Commonfund. "There is a focus on what is happening here and now instead of six months to nine months from now."

The Dow Jones industrial average closed the week down 484.74, or 6.2 percent, at 7,365.67. The Standard & Poor's 500 index fell 56.79, or 6.9 percent, to 770.05. The Nasdaq composite index fell 93.13, or 6.1 percent, closing at 1,441.23.

The Russell 2000 index, which tracks the performance of small company stocks, declined 37.40, or 8.3 percent, to 410.96.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 7,802.27, down 583.47, or 6.96 percent, for the week. A year ago, the index was at 13,758.35

 

[barney]

Gidday all ...... I dont trade the Dow very often but just wondering if the Advance Decline stats have any significance from last night .....

Dow drops 250 .... the Advancing Issues were only 15%, yet the Up Volume was 61% ........... is that unusual or am I misinterpreting the numbers ?? Cheers.


ADVANCES & DECLINES
NYSE

Advancing Issues 589 (15%)

Declining Issues 3,265 (83%)

Unchanged Issues 85 (2%)

Total Issues 3,939 832

Up Volume 2,008,523,017 (61%)

Down Volume 1,225,900,580 (37%)

Unchanged Volume 64,234,793 (2%)
Total Volume 3,298,658,3901

 

[Aussiejeff]

Gidday all ...... I dont trade the Dow very often but just wondering if the Advance Decline stats have any significance from last night .....

Dow drops 250 .... the Advancing Issues were only 15%, yet the Up Volume was 61% ........... is that unusual or am I misinterpreting the numbers ?? Cheers.


ADVANCES & DECLINES
NYSE

Advancing Issues 589 (15%)

Declining Issues 3,265 (83%)

Unchanged Issues 85 (2%)

Total Issues 3,939 832

Up Volume 2,008,523,017 (61%)

Down Volume 1,225,900,580 (37%)

Unchanged Volume 64,234,793 (2%)
Total Volume 3,298,658,3901

Haven't looked into it but maybe a few penny stocks went up (big volume - little effect on market) but most of the big value majors went down (small volume - big effect on market)?

Just a hunch...



aj

 

[barney]

Dow drops 250 .... the Advancing Issues were only 15%, yet the Up Volume was 61% ........... is that unusual or am I misinterpreting the numbers ?? Cheers.



Advancing Issues 589 (15%)

Declining Issues 3,265 (83%)

Unchanged Issues 85 (2%)

Total Issues 3,939 832

Up Volume 2,008,523,017 (61%)

Down Volume 1,225,900,580 (37%)

Considering the turn around overnight, maybe anomalies on the UP/Down volume might be worth keeping an eye on .... 200+ points for a day trade would have been a nice pickup ........

Advancing Issues 3,189 (81%)
Declining Issues 667 (17%)
Up Volume 3,232,458,436 (79%)
Down Volume 812,187,078 (20%)