Weak economic data brought out sellers sending stock prices lower. Dow is down 61, decliners over advancers 2-1 & NAZ is down 4. Fourth qtr GDP rose at only a 0.6% annual rate, below expectations. The Labor Dept reported unemployment claims rose 19K last week. The dollar keeps falling sending the Euro, among other currencies, to a record level over $1.51. The weak dollar is tricky to evaluate, but it sends an general signal of a weak economy. One negative for the stock market is foreigners owning US stocks see their investments decline in their home currency.
Freddie Mac (FRE) reported a larger than expected loss of $2.5B in Q4 due to mortgage defaults. However FNM & FRE are up over $1 each, boosted by yesterday's news about removing limits on mortgage lending. Sprint Nextel (S), down 64¢, reported a whopper loss of $29B. Business is weak because they're losing customers. Thornburg Mortgage (TMA), a major mortgage lender, fell 1.69 on news it's getting margin calls. This stock has been at low levels for months, following the initial wave of negative mortgage news last year. So far, the stock market has done very well this week considering the flood of ugly news releases.
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