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Stocks rebounded Tuesday amid hope that Congress will regroup and find a way to approve a $700 billion bailout plan for banks which it rejected on Monday. Financials rallied and Apple, one of the hardest hit techs on Monday, gained 4 percent.
Stocks opened higher Tuesday amid hope that Congress will regroup and find a way to approve a $700 billion bailout plan for banks which it rejected on Monday.
The rise in futures is welcome by those hostile to the bill, who argue that the market should go it alone. To purists, the collapse of bank prices simply means that more and more of the bad news is factored into the market.
For the historic week ending Friday, September 19, 2008, the major U.S. Indices managed to close mixed and almost flat after one of the most volatile trading weeks ever, driven by the collapse of investment bank, Lehman Brothers, enormous government actions around the globe, and billion dollar deal making. In one week, the government bailed out AIG, pumped funds into money markets, and banned short selling of financials - all while keeping the Fed Funds target unchanged and taking unprecedented actions to halt the liquidity crisis. The CBOE Volatility Index (VIX) surpassed the benchmark level of 30, hitting an intraday high of 42.16 on Thursday, its highest level since 10/2002. The major indices were all up and down +/- 3% for 4 of the past 5 days. The Dow posted a 2 day point move of more than 778 points as of Friday’s close, after plummeting 811 between Monday and Wednesday and hitting 10,609.66, its lowest level since 11/9/2005. On Friday, The Nasdaq Composite recorded a 2-day point move of greater than 175 points after it closed down 109.05 points on Wednesday, its first triple digit decline for one day since it began trading after the 9/11 attacks. The S&P 500 flirted with record territory closing up 98.7 over the last two days, marking its biggest 2-day point move since 3/16/2000, the largest 2-day point move ever.
(That's Balance Sheet, of course.) As Morgan Stanley, Genworth, State Street, WaMu and others are feeling the squeeze, I feel the need to dispel some myths that are crippling Wall St. and arguably the world.
On the announcement of the Government takeover of Freddie Mac and Fannie Mae, the markets surged on the open. The S&P 500 initially jumped over 30 points, more than it has ever moved on an open.
The U of Michigan Consumer Sentiment Index of 62.6 is at its lowest level since March 1982 when it hit 62.0. The news is weighing on stocks.
Defaults on privately insured U.S. mortgages rose 38.1 percent in February, as a growing number of homeowners failed to keep up with their loan payments.
Cramer makes the call on viewers' favorite stocks.
Genworth Financial, a life and mortgage insurer, on Tuesday forecast 2008 operating earnings below analysts' expectations, sending its shares down 5 percent.
Excluding items, Genworth earned 75 cents a share, short of expectations. The company was seen reporting earnings of 77 cents a share, based on a consensus estimate compiled by Thomson Financial.