The investors said Citigroup looked askance at the loans' "abysmal performance."» Read More
Stocks started the week lower, hurt by more uncertainty in the banking industry and earnings report that left investors wary after coming off a strong rally last week.
Monday has not been a great day for bank earnings. Last Monday it was Wachovia that disappointed, today futures dropped at 7 am ET as Bank of America came short of expectations.
Bank of America, the largest U.S. retail bank, said quarterly profit fell a larger-than-expected 77 percent, dragged down by more than $5 billion of write-downs.
Stock index futures pointed to a lower start for the week as the first wave in a big week of earnings reports left investors wary.
A Singapore state investment fund that bought multi-billion dollar stakes in beleaguered banks Citigroup and UBS, said a global financial crisis and recession was increasingly likely but that its investments in western banks were long-term in nature.
Investors will have seen enough corporate results by the end of the week to determine if the recent string of encouraging earnings was a real sign stocks can weather the credit crisis.
Big banks topped this week's investing news as they continued to fight their way through the subprime mortgage mess. For some, like JPMorgan Chase and Citigroup, which both reported earnings this week, it meant continued writedowns.
Stocks rallied Friday amid hope that the worst is over for financials and after solid earnings from multinationals.
Whenever the stock market rushes full speed ahead, it is hard not to look for the big let-down. That could be the case in the week ahead... Major earnings reports, housing data, annual shareholder meetings, and Tuesday's Pennsylvania presidential primaries are what traders will be watching to see if the trend continues.
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Corporate earnings put investors in a buying mood and sent the Dow soaring. What's the "Word on the Street?"
For the week ending Friday, April 18, 2008 the US Markets ended the week rallying on earnings news. The Dow had its best week since Feb 1 and rallied 256.8 points on Wednesday and another 228.87 points on Friday, for its biggest point gains since April 1st.
The week started out poorly, with Wachovia Bank disappointing, and creating fears that the financials would simply fall apart. It didn't happen; Merrill Lynch and Citi reported big writedowns and poor earnings;
Citigroup, Merrill Lynch and Wachovia this week announced 12,400 job cuts, and the number of pink slips is likely to rise as losses mount and the economy works its way out of its malaise.
Signs of renewed confidence in the U.S. financial system could support the dollar next week, provided March's housing reports do not revive chances of a steep interest rate cut.
Investors just want to know what's on their plate, even if they don't like the taste, and that's what Citigroup provided, along with a plan for recovery.
Stocks soared Friday amid renewed hope that the worst is over for financials and solid earnings from the industrial and tech sectors.
A look at job cuts announced in recent weeks by U.S. banks:
The dollar touched a seven-week high against the yen and pulled further away from a record low versus the euro Friday after Citigroup earnings contained less damage from the crisis in credit markets than some had expected.
U.S. stocks opened sharply higher Friday as a string of powerful earnings reports showed blue-chip corporate strength that belied fears of a crumbling economy.