Lehman (LEH), down 2.40, raised $6B in financing after reporting a 2.8B Q2 loss, larger than expected. They need the capital to help get thru the credit crisis. Also oil was also a couple dollars lower, but these moves did not shake markets. Dow is up 74 (below earlier highs), advancers & decliners are about equal while NAZ is down 20. Oil, subject to profit taking, fell back 2 while AAA reported gas reached 4.02 yesterday (check my AAA button on the right). CIT (CIT), a commercial finance company, up 1.07, will get $3B in financing from Goldman Sachs (GS). Times are tough, expect more such deals.
McDonalds (MCD), a Dow stock, reported May same store sales grew 7.7% including 4.3% growth by US stores. MCD was up 2.24, contributing to the Dow's big gain.
For the bulls, trading this AM was a big disappointment. They would have liked a huge sell-off following buy a nice rally later in the day. That would signal sellers bailed out, leaving buyers to take charge (especially after the LEH news). But it didn't happen. Dow is still stuck kicking around the 12Ks, if anything it's on defense.
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