CNBC Pros Say: U.S. Recession Looks Endless - Economy * US * News * Story

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

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?

SPECIAL REPORTS

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.

CNBC ON DIGG

Pros Say: U.S. Recession Looks Endless

Sectors:Banks

By: CNBC.com | 27 Feb 2009 | 03:38 PM ET

Text Size

Friday: General Electric* said it'll slash its quarterly dividend 68 percent, to 10 cents from 31 cents per share, beginning in the third quarter. The move is expected to save the mega-conglomerate $9 billion annually. The U.S. agreed to boost its stake in Citigroup to as much as 36 percent, giving the government far more control of the ailing banking giant. U.S. GDP data was sharply revised downward, with economic loss at 6.2 percent as consumers cut spending by the most in over 28 years. Experts told CNBC that the market is resisting scary talk from President Obama and Fed Chairman Bernanke — but the recession's end is nowhere in sight.

Sign of the Times: A Great Big "???"

Frederic Dickson of D. A. Davidson & Co. said huge questions remain about the Obama administration's budget proposal, e.g., will it cap growth potential for businesses? He says it's likely to be a drag on the markets — at least until there is some clarification.

The Economic Cycle Research Institute's Lakshman Achuthan said figures can be made to say anything you want them to say, but here's the reality: there is no end in sight to this profound recession.

Lots of Downward Pressure, But Market Holds its Own

Ben Lichtenstein of Traders Audio said speeches by President Obama have been a downward force on the market this week, as have most data releases, and Fed Chairman Bernanke's testimony was not especially encouraging. But the market has been rather resilient. 750 was an important level in the S&P 500; once it was breached to the downside Friday, the next key S&P support level will be in the 730s.

Read The CNBC Stock Blog

Options Action: The Duality of Health-Care Insurers

Rebecca Darst of NYSE Euronext said things get interesting in options trading when volatility varies between individual stocks within a specific sector. She saw that yesterday with Aetna and Cigna, parts of the heavily-pressured health-care insurance sector. Aetna options hit a 52-week high in volume, dominated by calls. In Cigna, which also traded lower yesterday, puts were out-trading calls by about eight to one.

_____________________________________
CNBC Slideshows:

_____________________________________
CNBC Investment Tools:

_____________________________________
CNBC's Companies in the News:

General Electric* [GE Loading... () ]