Tuesday, June 24, 2008

Higher bank stocks fail to lead markets upward!

Higher bank stocks did not lead the markets forward today. Dow was down 35, decliners over advancers better than 2-1 & NAZ declined 17. There were 406 new lows including many from the banking sector. However banks had a very good day from an extremely oversold condition. For example, Bank of America (BAC) dropped 15% in a week to new 6 year lows. Today it went up 74¢, closing near its high. Banks got encouragement from Wachovia (WB) on news that they are seeking advice on what to do with the billions in loans they're stuck with. Tomorrow banks should be pretty much absent from the new lows list, instead it will focus on regular struggling companies. REITs went up a little & junk bond funds were mixed to slightly up. But markets in general were down on more dreary news. The Alerian MLP index pulled back 1.56 to 287.49, remaining below the important 290 support level. Oil rose slightly to 137 amidst all the confusing news on supply problems, whatever.

Tomorrow the FED will announce any interest rate changes, none expected, & the outlook for the future. Investors will be hanging on every word in their outlook.

No comments: