Wachovia reported a big & unexpected loss but the markets are only slightly lower. Dow & NAZ are down a little while advancers about equal decliners. Wachovia (WB), down 10%, reported a loss of almost $.4B for Q1. Much the disappointment relates to last year's acquisition of a mortgage company, now they admit their timing was not good. To improve equity they are raising $7B & also cutting div 41%. Most banks are selling off on this news. Two other dividend banks I have followed, National City (NCC) & First Horizon (FHN), are at multi year lows, each down 6% today. FHN used to be on the S&P Dividend Aristocrat list. Both had good records for raising divs, but that's all history in today's world.
Commerce Dept reported Mar retail sales were sluggish after a down Feb. Mar was up only .2% vs a .4% decline in the prior month. That gain was largely due to higher prices for gas. Without gas, retail sales were only even. Oil is back over 111, higher prices will continue to be a drag for the US economy. The head of the World Bank urges action on dealing with higher food prices. Corn & rice, two of the most important grains for the planet, are at record levels. The fall of the gov in Haiti over the weekend followed deadly rioting over food prices. Higher food prices are hurting much of the world's population, this story may get worse going forward.
Market have a lot to think about, much of it's pretty ugly.
No comments:
Post a Comment