Oil keeps marching up reaching 126 while prices at the pump are above 3.67. Worries center around supplies from Venezuela, oil that is sold to the US. Demand for oil continues strong while supply sources from Nigeria, Mideast, Venezuela, etc. are always iffy. I think the Citi announcement is more worrisome. Banking/financial sectors may have additional very ugly stories to be told.
Friday, May 9, 2008
Citigroup, AIG, oil prices send stocks lower
Today is a gloomy day with news to match. Citigroup (C) & Amer Intl Group (AIG), 2 Dow stocks, & higher oil prices sent stocks lower, although too badly. Dow is down 118 & NAZ is down 13, but internals aren't so bad as decliners outnumber advancers 3-2. Citigroup plans to get rid of ½T (as in trillion) of non core or legacy assets. Bloomberg News said this would mean writing off $400B. Citi claims this will help them grow 9% per annum going forward, the stock is down a little. AIG's ugly loss & need for more capital was reported last night, they're down 3.43. Their 20 year chart is shown:
Oil keeps marching up reaching 126 while prices at the pump are above 3.67. Worries center around supplies from Venezuela, oil that is sold to the US. Demand for oil continues strong while supply sources from Nigeria, Mideast, Venezuela, etc. are always iffy. I think the Citi announcement is more worrisome. Banking/financial sectors may have additional very ugly stories to be told.
Oil keeps marching up reaching 126 while prices at the pump are above 3.67. Worries center around supplies from Venezuela, oil that is sold to the US. Demand for oil continues strong while supply sources from Nigeria, Mideast, Venezuela, etc. are always iffy. I think the Citi announcement is more worrisome. Banking/financial sectors may have additional very ugly stories to be told.
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