Stocks are mixed although decliners lead advancers almost 2-1, nothing dramatic. Investors were disappointed by Morgan Stanley's larger than expected quarterly loss of $3.6B (down from a profit of 2.2B last year) but encouraged by China's $5 billion investment in MS. Morgan Stanley had to write down $9.4 billion (remember when that was a big deal?) from bad bets on mortgage loans, the stock was up 1.57. Even in tough economic times, US firms are increasingly finding buyers by government agencies overseas, Citigroup (C) recently sold $7.5 billion in shares to Abu Dhabi Investment Authority. Expect more of these type deals in the future.
Crude oil supplies dropped more than expected last week, oil was up 1 to over 91. Ugly stories keep coming out about the mortgage mess here which affects banking institutions all over the world. Let's see how this negative news, tax loss selling and year end adjustments play out.
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