This was some kind of day. The Dow rallied with a 272 point gain out of the gate. Then it pulled back to a 100 point loss but rallied at the close to end with a 41 point gain. Advancers equaled decliners. OK. The news from the FED about arranging liquidity with other central banks caused the market to rally. Then the markets tried to figure out what it really meant & if it would do any good. Banking news, all negative, started having it's effect on the markets causing the declines. Banks have been investing in complicated new loan products we don't understand. Given the billions that are being written off day after day, it appears they don't understand these products either. I still like financials, especially banks, but it looks like it's not a good idea buying these stocks before they get their problems sorted out (i.e. in the future).
There was good news. ATT (T) had great news yesterday. Another Dow, MMM (MMM) today had a favorable announcement about it's future. But rough times for banks is affecting the entire market.
No comments:
Post a Comment