Stocks declined Wednesday as bank shares continued to struggle and retail sales unexpectedly fell for a second straight month. A brief reprieve after the business-inventories report and comments from President Obama fizzled.
Stocks pared their losses Wednesday after a report showed business inventories shrunk at a slower pace and remarks from President Obama on health-care reform. Still, stocks remained under pressure as bank shares continued to struggle and retail sales unexpectedly fell for a second straight month.
Has government involvement in the financial sector been beneficial to the largest U.S. banks? After the completion of the government’s bank stress tests, results showed that 10 out of the nation’s 19 largest banks need to raise ~$75 billion in capital to become more solvent.
Some market watchers are speculating that the stress test results could trigger a string of mergers.
US banking regulators released results of the stress tests on the 19 biggest American financial institutions, saying which banks need additional capital to survive a worsening of the economy
"The government will try and spin the results positively, and argue that most financial firms are in good shape and no one firm “failed” the test. But the market should know differently. Because the stress tests applied consistent standards across banks, the relative ranking of the banks will be quite accurate. The losers will be out there for us all to see," writes Roubini and his colleagues.
As of yesterday, over 80% of the S&P 500 companies have reported earnings. Here's a look at which companies have had the biggest surprises so far...
The bank stress tests may not only be misguided policy, critics say, but may actually conflict with two other key government initiatives to stabilize the financial system.
Shares of bank stocks soared even as the government told some of the industry's leaders that they'll need to raise billions to pass stress tests.
Complete transcript and video of Warren Buffett's live appearance on CNBC's Squawk Box this morning (Monday). He tells Becky Quick the U.S. economy is "very slow" and "getting slower" but he remains optimistic the economy will turn around eventually.
Uncertainty over bank stress testing and the billions in loan losses the institutions will have to cover poses a threat to the stock market rally.
Stock futures are set to begin May just slightly higher this morning. This comes off the heels of one of the best months in several years for the S&P 500. Most European bourses are closed today due to the May Day holiday.
Stocks opened higher Wednesday and continue to climb mid-morning — despite a glum GDP report — amid glimmers of health in financials. As everyone waits for the results of the banks' stress tests, analyst chatter is focusing on the regionals. David Faber has more.
As of yesterday, over 40% of the S&P 500 companies have reported earnings. Here's a look at which companies have had the biggest surprises so far...
CNBC's David Faber dissected SunTrust Banks and Fifth Third Bancorp earnings — and said the regionals may take a "bigger hit" from the stress tests than the big financials will.
In a conversation published today focusing on why he likes Wells Fargo, Warren Buffett told Fortune's Adam Lashinsky: "We own stock in four banks: USB, Wells, M&T, and SunTrust." That raised a question. What about the five million Bank of America shares owned by Berkshire Hathaway as of the end of last year? We now have the answer to the 'mystery' of the 'missing' B of A shares, straight from Buffett himself.
Warren Buffett says you should judge a banker by how they bank, not by their speeches or PR: "It's what they do and what they don't do. And what Wells (Fargo) didn't do is what defines their greatness." Buffett tells Fortune's Adam Lashinsky that Wells didn't do "dumb things" just because all the other banks were doing them.
On the heels of better than expected earnings from Citi and BB&T most banks are trading on the upside today. Following upside surprises from JP Morgan, Goldman Sachs, and Wells Fargo, bank stocks are again posting gains for the week.
Careful here: the market is showing signs of ignoring bad news (CEOs are consistently talking down expectations) and jumping all over any glimmer of good news.
Banks were hurt by a recent report by Mike Mayo, Cramer tells you why you should pay no attention to it, and points out the best and the worst in the sector.