Well, a day after we were dancing with Dow 14,000, the market gets ugly. Bad earnings from Intel (INTC) and more subprime lending woes were the culprits. Thank goodness for energy, which helped stocks recover in the final hours of trading. Let's get right to the trades behind the news. Here's the Word On The Street.
THE BROTHERS GRIM?
The headline: Lehman Brothers (LEH) Tumbles On Rumors Of Wider Subprime Exposure; Lehman Brothers: Subprime Rumors Are "Totally Unfounded"
Pete Najarian says the financials were slaughtered Wednesday because traders were selling into the news.
Jeff Macke adds that the bulls will continue to get crushed on this kind of speculation.
Eric Bolling doesn’t expect the financial sector to recover soon and recommends investors stay with what’s working.
RUN ON THE BANKS:
The headline: Citigroup (C), JPMorgan (JPM), Bank of America (BAC) Lead Market Lower Today
Pete Najarian says stay away from these names. There’s too much focus on subprime right now.
Karen Finerman says although she likes financials on valuation she doesn’t think credit fears are fully over and urges caution in the space.