Bank of America said on Tuesday it would eliminate 650 corporate and investment banking jobs and sell its equity prime brokerage business, as the second-largest U.S. bank retrenches in the face of difficult credit market conditions.
Citigroup and Merrill Lynch announced a collective $19.1 billion worth of new investments, with a significant chunk of this money coming from sovereign wealth funds.
Major indices are again at important technical levels. The small-cap Russell 2000 is again at 52-week low; and if we close here the Dow Industrials and the S&P 500 will both be at 10-month lows. The problem is principally with Citi and the realization that the bottom is not in. The equation here is simple: no "kitchen sink" quarter + consumer deteriorating = stock dead in water.
The dollar Tuesday fell to its lowest against the yen since June 2005 and extended declines against the euro after U.S. retail sales data provided further evidence an economic slowdown was spreading to the consumer.
Citigroup’s $18.1 billion-dollar writedown has to make you wonder what’s real and what’s fear. What am I talking about? Okay, all these write downs that we’ve been hearing about over the last few quarters are all about the performance of subprime mortgages, or are they?
Citigroup reported a quarterly loss that was nearly double expectations due to a huge writedown for subprime mortgages.
Retail sales a clear disappointment, dropped futures even more, only good news is Fed has even more room to ease here. Citigroup reported a fourth quarter loss of $1.99, $1.03 expected. Losses were driven by write-downs (of $17.4 billion) and losses in subprime, and an increase in credit costs of $5.4 billion in the consumer loan portfolio (more signs that the consumer is slowing down).
Merrill Lynch said Tuesday that it is getting a cash infusion of $6.6 billion from three foreign investment funds.
Four Wall Street firms have received subpoenas from US Senate investigators who are examining whether the firms improperly structured transactions to help hedge funds avoid dividend taxes, The Wall Street Journal reported on its website.
Important economic data will compete with Citigroup's much-anticipated earnings report ahead of Tuesday's opening bell. Retail sales data is being particularly watched to see if it is weak enough to prompt the Fed to cut rates even before its regular meeting at the end of the month.
Wall Street advanced sharply Monday, with solid preliminary results from IBM encouraging investors to go back into the stock market. What's the word on the Street?
A Congressional committee said on Monday it invited current and former chief executives of three major financial institutions -- Countrywide Financial Corp , Citigroup and Merrill Lynch -- to testify on Feb. 7 about their severance packages.
Stocks closed sharply higher after IBM's improved outlook kicked off a market rally.
The idea that financials are close to a turning point has been percolating for several weeks. But word that Citigroup could take a massive writedown when it releases earnings tomorrow has added fuel to the theory the group may be closing in on a bottom.
Europe's major indexes ended slighlty higher Monday, despite early losses, as banking stocks made firm gains and helped to overcome worries about a U.S. recession.
The dollar dropped to a record low versus the Swiss franc and seven-week lows against the euro and yen on Monday as concern that weak U.S. corporate earnings will prompt more interest rate cuts weighed on the currency.
Citigroup plans to announce a writedown of as much as $24 billion and layoffs of up to 24,000 due to subprime and credit-related losses, CNBC has learned.
Asian markets ended mostly lower Monday, while the price of gold hit a new record high above $900 a troy ounce as investors sought protection against a potential U.S. recession and a weaker dollar. Hong Kong stocks closed 1.5 percent lower and South Korean shares lost almost 1 percent.
In "Tomorrow's Playbook", the largest banks reveal just how bad it is out there. What’s the trade ahead of earnings from Citibank (C) and Merrill (MER). Also how to play the upcoming Macworld conference and the new defense budget.
The worse news out of the banks next week, the better chance the Fed will keep its promise.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.