Dow is down 104 to under 11.8K, decliners ahead of advancers 3-1 & NAZ is down 24. The next important downside level for the Dow will be 11.5K. In pre-trading markets, there was a rumor that FED would have an emergency rate cut in a few minutes. So much for that rumor. They were also talking about a rate cut of 75 basis points at next week's meeting. Meanwhile, the usual array of gloomy news continues. Gasoline prices are nearing record levels of $3.23 a gallon as oil reaches 107. Based on these trends, analysts are looking for gas to go to $4 a gallon. Blackstone (BX), down 55¢, reported a major write-down on it's bond insurer FGIC. Blackstone was the sexy darling of Wall Street when it went public last June, now it's down 50% from the original price. Recently the markets have had to absorb a lot of negative news on bond insurers, key players in credit markets.
An interesting article that caught me eye is Citigroup (C) sees write-downs of an additional $9B by investment banks. If they are right, that can bring forced selling in stocks when these funds try to liquidate. This is shaping up as another tough week even as the projected FED rate cuts nears.
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