r*m
发帖数: 16380 | 1 For Dow, another 12-year low
NEW YORK (CNNMoney.com) -- Stocks tumbled Monday, with the Dow and S&P 500
ending at fresh 12-year lows, as Merck's $41 billion purchase of Schering-
Plough failed to distract investors from worries about the economy.
The Dow Jones industrial average (INDU) lost 80 points, or 1.2%, to end at 6
,547.05, its lowest point since April 15, 1997.
The S&P 500 (SPX) index lost nearly 7 points or 1%, to end at 676.53, its
lowest point since Sept. 12, 1996.
The Nasdaq composite (COMP) lost 25 points or 2%, to end at 1,268.64, its
lowest point since Oct. 9, 2002.
"We're seeing more of the same," said John Buckingham, chief investment
officer at Al Frank Asset Management. "With an absence of good news, the
path of least resistance is down."
Yet, with the Dow and S&P 500 both down over 25% year to date, and investor
sentiment at or near record lows, a short, sharp rally could be in the works
, he said.
"To the extent that you get some piece of good news, you could see a big
rally," Buckingham said. "But right now every rally attempt is being met
with selling."
Since closing at its all-time high of 14,164.53 on Oct. 9, 2007, the Dow has
lost nearly 54%. The S&P 500, which also hit its high of 1565.15 on Oct. 9
has lost around 57%.
"Valuations are reasonably attractive outside of financials, but most
investors are in defensive mode," said Thomas Nyheim, portfolio manager at
Christiana Bank & Trust Company. "They've seen too many losses and are
sitting on the sidelines."
Nyheim said stocks aren't likely to make a bigger move up until later in the
year. In the short term, investors will be keeping an eye on the
fluctuations in the credit markets, and the weekly and monthly employment
figures.
Stocks mustered gains Friday - at the end of a rough week - with the Dow and
S&P 500 bouncing off 12-year lows following a bleak February jobs report.
On Tuesday morning, Federal Reserve Chairman Ben Bernanke speaks at the
Council on Foreign Relations in Washington, D.C. about financial reforms to
handle risk in the economy.
In addition, the government will release a report on January wholesale
inventories.
Drugmaker Merger: Dow component Merck (MRK, Fortune 500) said it's buying
Schering-Plough (SGP, Fortune 500) in a $41.1 billion cash-and-stock deal
that is aimed at helping the company better compete with pharmaceutical
industry leader Pfizer. Merck shares slipped 7.7% and Schering shares
rallied over 14%.
Banks: A variety of bank shares bounced back, with Bank of America (BAC,
Fortune 500) leading the way, rising over 19%. Other gainers included Wells
Fargo (WFC, Fortune 500) and US Bancorp (DEL). The KBW Bank (BKX) index
added 5.3%.
Over the weekend, reports in Fortune and other publications named some of
the companies that benefited from the government's multi-billion bailout of
insurer American International Group (AIG, Fortune 500).
The counterparties to billions in credit default swaps included U.S. based
firm Goldman Sachs (GS, Fortune 500) as well as European firms Deutsche Bank
(DB), UBS (UBS) and Socit Gnrale among others.
Other movers: Some of the economically-sensitive stocks that have gotten
pummeled lately bounced back, including Dow components Alcoa (AA, Fortune
500), Caterpillar (CAT, Fortune 500), General Motors (GM, Fortune 500) and
General Electric (GE, Fortune 500).
GE rallied after it said it was selling bonds guaranteed by the U.S.
government.
But other Dow components slumped, including DuPont (DD, Fortune 500), AT&T (
T, Fortune 500), Procter & Gamble (PG, Fortune 500), Hewlett-Packard (HPQ,
Fortune 500) and IBM (IBM, Fortune 500).
StemCells (STEM) and Geron (GERN), two biotechs that engage in stem cell
research, rallied Monday after President Obama reversed a Bush-era policy
that limited federal aid for stem cell research.
Market breadth was negative. On the New York Stock Exchange, losers beat
winners seven to three on volume of 1.56 billion shares. On the Nasdaq,
decliners topped advancers by more than two to one on volume of 2.08 billion
shares.
Also in play: Comments from influential investor Warren Buffett that the
economy has fallen off a cliff, but that it will recover.
Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year
note to 2.91% from 2.87% Friday. Treasury prices and yields move in opposite
directions.
Lending rates tightened. The 3-month Libor rate rose to 1.31% from 1.29%
Friday, while the overnight Libor rate rose to 0.33% from 0.32% Friday,
according to Bloomberg.com. Libor is a bank-to-bank lending rate.
Other markets: In global trading, Asian markets ended lower and European
markets ended mixed.
In currency trading, the dollar rose versus the euro and the yen.
U.S. light crude oil for April delivery rose $1.55 to settle at $47.07 a
barrel on the New York Mercantile Exchange.
COMEX gold for April delivery fell $24.70 to settle at $918 an ounce. To top
of page | r*m
发帖数: 16380 | 2 March 9, 2009: The Day Stocks Bottomed Out
“How low can stocks go?” That was the omnioius query topping The Wall
Street Journal’s Money and Investing section on March 9, 2009.
It wasn’t an idle question. The Dow was on its fourth straight week of
losses, while the broader S&P 500 was below 700 for the first time in 13
years. Goldman Sachs put out a research report that warned the S&P could
fall as low as 400.
A year later, we know that March 9 was the bottom of a months-long financial
panic that wiped away trillions of dollars in assets. But on what now
appears to have been the best buying opportunity of a generation, many only
wondered how much lower the markets would tumble.
Follow Forbes Money Builder On Twitter
Everywhere you turned on the March day, it looked like the economy was
ripping apart at the seams. Billionaire T. Boone Pickens had just announced
he was pulling back his plans to build a massive wind farm in Texas because
of the lack of investor interest. A managing partner at a hedge fund
interviewed by The New York Times was advising well-off clients to buy
shotguns to protect themselves against social unrest if the market fell any
lower.
Maureen Dowd lamented that General Motors was near bankruptcy and that the
President had to deny he was a Socialist. “The only bracing symbol of
American strength right now is the image of Michelle Obama’s sculpted
biceps,” she concluded.
Over on Comedy Central Jon Stewart was savaging CNBC for its role for
downplaying the severity of the financial crisis with a withering takedown:
“If I had only followed CNBC’s advice, I’d have a million dollars
today … provided that I’d started with $100 million.”
Taxpayers had recently come into ownership of almost 80% of American
International Group . The fact that the American public was paying AIG
counterparties like Merrill Lynch and Goldman Sachs full price on the $70
billion worth of derivatives spawned persistent conspiracy theories.
The financial sector saw one of its few positive signs when billionaire
Warren Buffett argued that his holdings in Wells Fargo and US Bancorp should
appear “better than ever” in 2012. Still the once high-flying
sector was beyond humbled. Bank of America traded for just $3.68 a share (it
is now around $17) and credit card issuer Capital One Financial traded for
$9.20 a share (now around $38.)
Financial pundits were telling investors that buy-and-hold investing was
dead, and that the only real way to make money in the market in the future
would be to strategically time your trades and take your gains whenever you
could get them.
There were a few optimistic signals. The federal government began to send
the first stimulus dollars into the economy, comforting those on Wall Street
who were waiting for a sustained government action.
Citigroup’s chief equity strategist told The Wall Street Journal he thought
the S&P would hit 1,000 by the end of 2009 and his counterpart at JPMorgan
Chase thought the market would hit 1,100. Both weren’t far off, as the S&P
finished the year near 1,120 after gaining more than 60%. | p**y
发帖数: 7407 | | X*********r
发帖数: 11803 | 4 老家伙你也来申请版主玩玩？
6
★ 发自iPhone App: ChineseWeb 8.2.2
【在 r*m 的大作中提到】
: For Dow, another 12-year low
: NEW YORK (CNNMoney.com) -- Stocks tumbled Monday, with the Dow and S&P 500
: ending at fresh 12-year lows, as Merck's $41 billion purchase of Schering-
: Plough failed to distract investors from worries about the economy.
: The Dow Jones industrial average (INDU) lost 80 points, or 1.2%, to end at 6
: ,547.05, its lowest point since April 15, 1997.
: The S&P 500 (SPX) index lost nearly 7 points or 1%, to end at 676.53, its
: lowest point since Sept. 12, 1996.
: The Nasdaq composite (COMP) lost 25 points or 2%, to end at 1,268.64, its
: lowest point since Oct. 9, 2002.
|
|
