Skip navigation


Current DateTime: 10:07:47 23 Nov 2009
LinksList Documentid: 33482595

Current DateTime: 10:07:48 23 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 10:07:48 23 Nov 2009
LinksList Documentid: 33793611
  • How Much Do You Know About Green?

      Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 10:07:48 23 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
By: Cindy Perman, CNBC.com | 01 Oct 2008 | 05:24 PM ET
Text Size

Stocks ended lower Wednesday amid concerns about strained credit markets and the economic slowdown. Banks rallied as investors were encouraged by progress on bailout talks on Capitol Hill. GE got a vote of confidence -- to the tune of $3 billion -- from Warren Buffett.

The Dow Jones Industrial Average and the S&P 500 ended down slightly, after more severe declines earlier, while the Nasdaq shed more than 1 percent.

"I think there's been a tug of war between the pessimism of the [economic] data ... vs. optimism that we're going to have a rescue package ... and discussion on whether or not the Fed is going to cut rates," said Alan Gayle, senior investment strategist at RidgeWorth Investments.

Major U.S. Indexes
Loading...
Loading...
Loading...

Financials were the day's big gainers, with Citigroup [C  Loading...      ()   ], Bank of America [BAC  Loading...      ()   ] and JPMorgan [JPM  Loading...      ()   ] locking in the top three spots on the Dow, amid hope that Congress will pass a new bailout and that regulators will extend the ban on short selling. Short selling occurs when shares are borrowed on a bet that they will go down, and then repurchased at the lower price.

(Track the Dow winners  and losers.)

Volume on the New York Stock Exchange was light, coming in around 1.4 billion, well below the average of 1.9 billion.

The Senate is expected to vote on a new version of the $700 billion bailout bill tonight. The unusual time was set in deference to Rosh Hashanah, the Jewish new-year holiday, which ends at sundown today.

Meanwhile, House Republicans are working on an alternative bailout package.

More From CNBC.com

The head of the New York Stock Exchange said he is confident that U.S. regulators will exten the ban on short selling in some financial stocks, which was set to expire tomorrow night, and suggested reinstating the "uptick rule," which requires that short sellers sell at a price higher than the previous trade.

And in Europe, regulators were attempting to set up a bailout similar to the U.S. for European banks but France and Germany locked horns, unable to reach an agreement.

American depositary shares of UBS [UBS  Loading...      ()   ] advanced 8 percent after the Swiss bank said it was cutting 1,900 jobs.

Shares of regional banks were mixed: National City [NCC  Loading...      ()   ] shot up 65 percent, and Sovereign Bancorp [SOV  Loading...      ()   ] advanced 22 percent, while State Street [STT  Loading...      ()   ] declined 2.3 percent. Genworth Financial [GNW  Loading...      ()   ] shed 15 percent and Sallie Mae [SLM  Loading...      ()   ] lost 33 percent.

General Electric, parent of CNBC, [GE  Loading...      ()   ] pared its loss to 4 percent following news that Warren Buffett will buy a $3 billion stake in the conglomerate in a deal reminiscent of Buffett's investment in Goldman Sachs last week. In fact, Buffett said it's "almost identical" to the Goldman deal.

"The average investor is encouraged when they see someone with reputed investment acumen like Buffett stepping up to the plate in what is currently a very turbulent time," Gayle said.

Buffett "bought [Goldman Sachs] GS, now it's GE. Is he going to go for GM next?" Joe Saluzzi, co-manager of trading at Themis Trading, told Reuters. "These are one of those signs when you are looking for a market bottom. You want smart money to come in and say 'I'm coming in there and putting my money down.'"

Earlier, GE shares were the biggest drag on the Dow after Deutsche Bank lowered its price target on the stock and earnings outlook for the company, citing the drag of GE's finance arm, which does everything from loans to mid-sized businesses to investments in real estate.

General Motors shares [GM  Loading...      ()   ] ended flat after the auto maker reported its U.S. sales fell 16 percent in September, a smaller drop than than expected, helped by an employee-pricing offer. Shares of rival Ford [F  Loading...      ()   ] skidded 13 percent after the auto maker reported its U.S. sales dropped 34 percent ladst month..

Economic news was pretty discouraging: The Institute for Supply Management reported its gauge of manufacturing activity contracted for a second month to its lowest level since October 2001. A separate report showed construction spending was unchanged in August. Meanwhile, private U.S. employers clipped 8,000 jobs from their payrolls in September, a surprisingly low figure, ADP reported. And mortgage applications dropped to their lowest in a month, the Mortgage Bankers Association said.

Crude oil [US@CL.1  Loading...      ()   ] settled at $98.53 a barrel after a report showed crude inventories rose by 4.3 million barrels, more than expected.

Tech stocks again took it harder than the rest of the market amid concerns that the economic downturn will crimp tech spending.

IBM [IBM  Loading...      ()   ] was the biggest decliner on the Dow; Hewlett-Packard [HPQ  Loading...      ()   ] and Intel [INTC  Loading...      ()   ] also declined.

Google shares [GOOG  Loading...      ()   ] rose 2.8 percent Wednesday after a wild ride in the prior session. The stock was reset at $400.52 after Nasdaq canceled "erroneous orders" that sent the stock down to $341.43 late Tuesday.

It's already time to start thinking about the holiday-shopping season, and Wal-Mart [WMT  Loading...      ()   ] was out front, announcing price cuts on toys to win over cash-strapped consumers. The discount retailer said it will offer ten toys, including certain Barbie dolls and Tonka trucks, for under $10.

THIS WEEK:

WEDNESDAY: Eid (Muslim) holiday
THURSDAY: Short-selling ban expires at 11:59 pm ET; ECB announcement; jobless claims; factory orders; natural-gas inventories; Fed's Bullard speaks; earnings from Constellation Brands
FRIDAY: August jobs report; ISM services index; earnings from Family Dollar

Send comments to .

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • The show attracts a big TV audience every year, but this year it may take on even more importance.
  • …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
  • Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
  • CNBC’s Phil LeBeau took a test drive of GM’s flagship electric car. Here’s what he thought of the Volt.
  • A Macau casino will open Asia's first Michael Jackson shrine after its owners made a key purchase at a US auction.
  • CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
ADD COMMENTS
Remaining characters


Current DateTime: 06:27:23 23 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 06:27:23 23 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 09:53:52 23 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 09:12:15 23 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters