Dow, down over 100 in pre-trading, quickly rose over 100 when the inflation report came out & proved to be mild (showing the kind of markets we have). Then BSC news dominated & Dow sank 300 but recovered to only down 115, decliners are ahead of advancers 5-1 & NAZ is down 30. This is what the markets feared, adding nervousness to already tense market environment. Banks, REITs, MLPs, among others, are selling off. Given this problems, the FED's meeting next week may be of secondary importance as investors will be more interested in trying to figure out this financial mess.
Friday, March 14, 2008
Bear Stearns needs bailout
Bear Stearn (BSC), 5th largest investment bank on Wall Street, needs to be bailed out by JP Morgan (JPM) & the FED. The FED will supply extra cash to help in this serious credit crisis. Rumors about BSC having significant financial problems proved true. Today BSC is down 24 on the news & it looks like all plans were made in the last 24 hours. Now other rumors will be taken more seriously.
Dow, down over 100 in pre-trading, quickly rose over 100 when the inflation report came out & proved to be mild (showing the kind of markets we have). Then BSC news dominated & Dow sank 300 but recovered to only down 115, decliners are ahead of advancers 5-1 & NAZ is down 30. This is what the markets feared, adding nervousness to already tense market environment. Banks, REITs, MLPs, among others, are selling off. Given this problems, the FED's meeting next week may be of secondary importance as investors will be more interested in trying to figure out this financial mess.
Dow, down over 100 in pre-trading, quickly rose over 100 when the inflation report came out & proved to be mild (showing the kind of markets we have). Then BSC news dominated & Dow sank 300 but recovered to only down 115, decliners are ahead of advancers 5-1 & NAZ is down 30. This is what the markets feared, adding nervousness to already tense market environment. Banks, REITs, MLPs, among others, are selling off. Given this problems, the FED's meeting next week may be of secondary importance as investors will be more interested in trying to figure out this financial mess.
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