Skip navigation


Current DateTime: 04:39:40 13 Feb 2012
LinksList Documentid: 33482595
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

Current DateTime: 04:39:40 13 Feb 2012
LinksList Documentid: 25124396
Expiration DateTime: 2/13/2012 4:42:56 AM

Current DateTime: 04:39:40 13 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/13/2012 4:42:24 AM

Current DateTime: 04:39:40 13 Feb 2012
LinksList Documentid: 24355697
  • The World's Best Beers

      Craft brewers account for only about five percent of the US market, but that may be changing.

  • Fashion Stocks Traders Love

      Over the past couple of months, the “Fast Money” traders weighed in on companies that stood out.

  • Best in Show

      Who is the top dog at the Westminster Kennel Club Dog Show

MOST SHARED


Current DateTime: 04:39:40 13 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/13/2012 4:42:45 AM

MOST POPULAR


Current DateTime: 04:39:41 13 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

Stocks Wobble as Investors Sell the Rally

By: Cindy Perman, CNBC.com | 03 Oct 2008 | 02:51 PM ET
Text Size

Stocks hovered around the flat line Friday afternoon after the House approved the revised $700 bailout bill for Wall Street.

"Definitely a sell-the-rally mentality," Dave Rovelli, managing director of US equity trading at Boston-based Canaccord Adams, said of the mood on the trading floor today.

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

The Dow Jones Industrial Average had been up about 200 points before the House started voting, then topped that with another 100 points as the voting got underway. The gains quickly eroded as soon as the House appeared to have enough votes to pass the bailout bill. (Track the Dow winners  and losers.)

The S&P 500 and Nasdaq also wavered.

Anxiety in the market subsided somewhat, with the CBOE Volatility Index sliding below 45.

The House approved the bailout bill early Friday afternoon, ending a weeklong battle that has riled the market. The plan, already approved by the Senate, would allow the government to buy bad mortgage-related securities and other troubled assets at a discounted price.

The bill's approval was cheered on the trading floor but it doesn't signal the all clear for the market.

"Right now, short term ... we're going to be focusing on that Libor to see if we can break that stranglehold on the credit markets -- that's critical," said Marc Pado, U.S. market strategist at Cantor Fitzgerald in San Francisco.

And, of  course, there's the economy.

The market shrugged off a couple of dismal numbers this morning: U.S. employers cut nonfarm payrolls by 159,000, the steepest rate in 5 1/2 years, while the unemployment rate was unchanged at 6.1 percent. A separate report showed the service sector barely grew in September.

Once the bailout plan moves through Congress, the “focus is gonna turn from this bailout plan to the fundamentals -- and the fundamentals aren’t pretty right now,” Art Hogan, chief market analyst at Jefferies, told CNBC.

The market had a lot of corporate news to chew on today, with news that Wachovia and Wells Fargo will merge and that AIG will sell some business units as it looks to streamline operations.

Wachovia [WB  Loading...      ()   ] shares rocketed higher following news that it will be bought by Wells Fargo [WFC  Loading...      ()   ] in an all-stock transaction worth $15.1 billion. Shares of Wells Fargo also rose.

Both stocks held onto most of their gains, even after Citigroup [C  Loading...      ()   ] said it may file a lawsuit to stop the deal. The deal essentially pulled the rug out from underneath Citigroup, which had been in an FDIC-orchestrated deal to buy Wachovia.

Citigroup was the biggest drag on the Dow, falling about 8 percent.

AIG [AIG  Loading...      ()   ] shares jumped 10 percent after the insurance giant said it will sell off a number of business units in an effort to become a smaller, more nimble company in the wake of an $85 billion bailout from the federal government.

Other insurers also rallied, including Hartford Financial [HIG  Loading...      ()   ], MetLife [MET  Loading...      ()   ] and Prudential [PRU  Loading...      ()   ], after getting beaten up this week amid speculation that another sector domino would be falling in the wake of AIG.

Apple shares [AAPL  Loading...      ()   ] recovered after a spokesman declared untrue a rumor that CEO Steve Jobs had suffered a heart attack. The stock had plunged to a new low of $94.65 at the opening bell as the rumor made the rounds.

Other blue-chip techs recovered from Thursday's bludgeoning.

Research In Motion [RIMM  Loading...      ()   ], Google [GOOG  Loading...      ()   ], Microsoft [MSFT  Loading...      ()   ] and Intel [INTC  Loading...      ()   ] were all higher.

In other signs that the credit crisis is spreading, California is fast running out of cash and may need as much as $7 billion in aid from the Treasury Department within weeks, the Los Angeles Time reported, quoting a letter from California Governor Arnold Schwarzenegger to Treasury Secretary Henry Paulson.

© 2012 CNBC.com
Tools:
Add This share icon


Current DateTime: 02:20:35 13 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 05:53:09 12 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 03:55:35 13 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 11:00:50 12 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  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

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters