Dow ends above 8,000 in best 4-week run since 1933
Posted 06 April 2009 - 04:30 AM
"Stocks rose on Friday, with the Dow marking its best four-week winning streak since 1933, lifted by robust results from Research in Motion and comments by Fed Chairman Ben Bernanke, who said the central bank will do everything it can to stabilize banks.
Growing conviction that the worst is over for the economy helped Wall Street shrug off dour jobs data showing the highest unemployment rate since 1983.
The Nasdaq outperformed other indexes, helped by a 21 percent jump in the U.S.-listed stock of Research in Motion (Toronto:RIM.TO - News; NasdaqGS:RIMM - News) after the BlackBerry maker, a Canadian company, posted surprisingly strong results on brisk retail demand and gave a rosy outlook after Thursday's closing bell."
also a fun read:
"Stocks climbed on Tuesday, driving the S&P 500 to its best month since October 2002, as investors snapped up top-performing bank and technology shares as the first quarter came to an end."
Posted 06 April 2009 - 06:35 AM
(side note: it shouldn't be used as one now, either....but that's kinda my point)
Posted 06 April 2009 - 06:39 AM
wait till inflation sets in.
but since chairman obama controls the banks we should be good...
nothing like causing F.U.D. to make millions for you and your west wing buddies.
Running has an uncanny ability to mellow the soul, to take the edge off hard feelings, and put things back into healthy perspective.
Yeah, it's a 50 caliber. They used to use it to hunt buffalo with... up close! It's only legal in two states. And this isn't one of them.
Posted 06 April 2009 - 02:18 PM
Profit-taking hits stocks after 5 days of gains. Sun Microsystems shares plunge after merger talks with IBM collapse. A prominent analyst sees the worst loan losses for banks since the Depression. MGM Mirage may sell 2 casinos to raise cash.
Stocks sagged today but were up from their worst losses after a prominent banking analyst advised selling the sector and IBM's (IBM, news, msgs) acquisition of Sun Microsystems (JAVA, news, msgs) appeared to have collapsed.
The banking recommendation by analyst Mike Mayo, who has just switched from Deutsche Bank to Calyon Securities, knocked financial stocks more than 3.5%, with some dropping 8% or more.
Sun Microsystems shares were down 22% to $6.61.
At 2:55 p.m. ET, the Dow Jones industrials ($INDU) were down 88 points, or 1.1%, to 7,930. On Friday, the blue-chips had closed above 8,000 for the first time since Feb. 9.
The Standard & Poor's 500 Index ($INX) was off 12 points, or 1.6%, to 827, and the Nasdaq Composite Index ($COMPX) was down 25 points, or 1.5%, to 1,597.
Much of the selling was profit-taking because the major indexes had risen for five straight days. Moreover, the major averages had risen sharply since bottoming on March 9. The Dow was up 22.5% after Friday's close.
Tech stocks were broadly lower because of the Sun-IBM collapse. Adding to the distress was Cisco Systems (CSCO, news, msgs), down 4.4% to $17.36 after Goldman Sachs cut its rating on the stock to "neutral" from "conviction buy."
Energy shares were lower after crude oil fell to $50.02, and metals stocks were lower on worries about how long it will take the global economy to regain some momentum. Dow component Alcoa (AA, news, msgs), which reports first-quarter earnings after Tuesday's close, was down 5.1% to $7.75.
Bank stocks slumped after analyst Mayo wrote clients that he expects loan losses to exceed levels from the Great Depression.
"While certain mortgage problems are farther along, other areas are likely to accelerate, reflecting a rolling recession by asset class," Mayo wrote. "New government actions might not help as much as expected."
Mayo gave "sell" ratings to BB&T (BBT, news, msgs), Fifth Third Bancorp (FITB, news, msgs), KeyCorp (KEY, news, msgs), SunTrust Banks (STI, news, msgs) and U.S. Bancorp (USB, news, msgs). Mayo rated Bank of America (BAC, news, msgs), Citigroup (C, news, msgs), JPMorgan Chase (JPM, news, msgs), Wells Fargo (WFC, news, msgs), Comerica (CMA, news, msgs) and PNC Financial Services (PNC, news, msgs) "underperform."
The S&P Banking Index ($BIX.X) was down 5.5% to 80 this afternoon.
Meanwhile, Treasury Secretary Tim Geithner is prepared to oust some senior executives at banks.
"If in the future, banks need exceptional assistance in order to get through this, then we will make sure that assistance comes," while ensuring taxpayers are protected, Geithner said Sunday on CBS' "Face the Nation." "Where that requires a change in management and the board, then we will do that."
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Last month, Geithner unveiled details of the government's public-private partnership to help rid banks of their toxic assets. Last week, the Financial Accounting Standards Board voted to change mark-to-market accounting rules, which will let banks value distressed and toxic assets at higher levels.
Geithner was also optimistic about the economy, saying that it was showing "encouraging" signs, particularly with mortgage rates. But Geithner said "it is going to take some time for us to work through this" recession.
What is your favorite color?
Go Big Red!
Posted 06 April 2009 - 06:57 PM
Posted 07 April 2009 - 11:09 AM
Ya gotta love it when Obama takes one of Dubya shittiest moves like the TARP and expands it like he has done.
Edit: Of course, this is More Pelosi, Frank and Dodd's idea, Dubya just went along with it.
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