Banks lead this week after underperforming this year. Sector rotation of out defensive plays and into risk-on names is helping.» Read More
Stocks rallied after President Bush outlined his plan to help distressed homeowners, and Federal Reserve Chairman Ben Bernanke said the Fed will act as needed to address credit concerns.
Stocks closed broadly lower as already jittery investors expressed disappointment that the latest Fed minutes showed policymakers were reluctant to cut interest rates. "The comments from the Fed not indicating that a rate cut was imminent and further deterioration in the financial sector -- all of this combined and we're down substantially here," said Brian Schaeffer, an NYSE floor specialist at Van der Moolen.
U.S. subprime auto lenders say they do not see a rising wave of defaults, but over the past year they have made a number of moves to burnish the scratches and dents in their loan portfolios.
Private equity firm Kohlberg Kravis Roberts is unlikely to make major compromises in talks with banks over the financing of a $24 billion deal to take over electronic payment processor First Data, the Wall Street Journal reported on its Web site on Thursday.
Merrill Lynch threw cold water on the financial sector Tuesday by downgrading Bear Stears, Citigroup and Lehman, citing their exposure to problems in the credit markets. The three were downgraded to "neutral" from "buy," which helped pushed financial stocks lower.
The two weak links in yesterday's market--housing and brokerage stocks--continued to be the weak links today. House prices declined 3.2% in Q2 from a year earlier, according to the S&P/Case-Shiller U.S. National Home Price Index. Home builders like Centex, Lennar and DR Horton down 4%-6% this morning; most builders are at multiyear lows.
Fear of financial companies is again gripping world stock markets. Selling in financial shares-- banks and brokers--was a theme in the U.S. market yesterday but continued around the globe as investors worry that credit problems would show up on the books of major financial institutions. Several headlines helped stir the fear. European markets are weaker this morning, and Asian stocks closed mostly lower.
It's finally happening: analysts are lowering estimates on investment banks, just a few days before the quarter closes for many of them. Merrill Lynch's Guy Moszkowski downgrades Bear Stearns, Lehman Bros. because of their greater dependence on debt markets; they note that Merrill and Morgan Stanley are more diversified.
Citigroup is combining its emerging-markets credit group and its global credit-trading business, bringing together traders who focus on the global credit markets, the Wall Street Journal reported in its online edition on Monday, citing an internal memo.
The stock market appeared to return to normal this past week, but many analysts believe continued credit worries will drive prices lower in the near term. Still, long-term investors should be on the lookout for bargains.
The past two weeks have been nothing short of tumultuous for markets in Asia. Stocks first hurtled downwards faster than if you threw a boulder off a cliff. Then this week saw stocks rallying, with markets making back almost all of the losses suffered the week before. It's easy to make money in these situations. But for those who do not see volatility as a friend, investing in a fund with a long-term strategy may be more the thing for you.
Banks have stepped up their borrowing from the Federal Reserve, a development encouraged by central bank policymakers to help stem a credit crunch that has roiled Wall Street.
Bank of America (BAC), the nation's second-biggest bank, will invest 2 billion dollars in beaten up mortgage giant Countrywide Financial (CFC). BAC will be buying $2 billion worth of preferred stock that can be converted into $18 a share, according to WSJ. What’s going on?
A worsening credit crunch and its broad impact on financial markets has some dealmakers predicting that leveraged buyouts are on hold for the rest of the year and perhaps well into 2008.
The deepening housing slump has caused an alarming surge in job losses at financial services companies, and the end is nowhere in sight, consulting firm Challenger, Gray & Christmas said on Tuesday.
The market got the rate cut it needed, so it's time to start buying stocks again. Here are Cramer's short-term picks for next week.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.
Stocks closed the week lower as credit market concerns had investors running for safety but a reversal of misfortune late in the week cut losses significantly.
On Friday, the Federal Reserve announced that it had approved a 50 basis-point cut in the discount rate it charges for loans made directly to banks, via its regional Federal Reserve lenders . Was the discount-rate cut merely in reaction to a temporary credit crunch -- or a sobering signal that Fed Chairman Ben Bernanke perceives deeper troubles in the U.S. financial sector? CNBC's Market Task Force and expert guests took on the question -- and offered survival advice to investors.
A strong rally during the final half-hour of trading erased much of Wall Street's losses in another volatile trading session. The rebound was led by recently battered financial shares on optimism regulators may let Fannie Mae and Freddie Mac, the two biggest U.S. mortgage funding companies, play a bigger role in steadying the ailing industry.