One more tough day in the markets. Asian markets were up but European markets pulled back. In NY, stocks are sliding as investors weigh concerns about credit & banking against retail reports. Wall Street gave up modest early gains as concerns about a weakening credit market unraveled some enthusiasm over reports of strong electronics sales over the holiday weekend. Dow is down 38 & NAZ is down 12. On the big board, decliners beat advancers 3-2.
Here are 4 AP stories hitting the market today:
(1) A consortium led by Virgin Group, wants to take over Northern Rock, the battered mortgage lender, & wants to re-brand Northern Rock as part of Virgin Money business. The consortium would repay 11 billion pounds ($22.7 billion) of the 25 billion pounds ($50 billion) the Bank of England has loaned Northern Rock on completion of the transaction. The remainder of the money would be paid "in due course," Northern Rock said.
(2) HSBC Holdings (HBC), Europe's largest bank, will bail out two troubled funds it manages by transferring $45 billion of their assets onto its balance sheet. Additionally it will also inject $35 billion into the two funds,
(3) Citigroup (C), bracing for big credit-related losses in the fourth quarter, is looking to lower costs which could mean another round of job cuts at the nation's largest bank.
(4) E-Trade Shares (ETFC) fall after news potential buyers are debating mortgage portfolio's cost.
The retail news after Black Friday was considered "good" but the negative news from the financials is too much for the markets. Uncertainty continues to be the word everybody is talking about, not good. This is shaping up as another tough day as traders can not get uncertainty off their minds..
No comments:
Post a Comment