Markets were lower, dreary economic news is weighing stocks down. Dow declined 133, decliners over advancers 3 to2 & NAZ slipped 25. Higher oil prices on supply worries (out of Nigeria) caught the eye of traders. Oil rose 77¢ to 124. Over the weekend, the Senate passed a bill helping home owners & Fannie Mae/Freddie Mac which got a muted response from investors. More gov intervention generally is not greeted with enthusiasm but this one was considered inevitable, so they accepted. Pres Bush may sign it as soon as today. Toyota (TM) lowered its global sales forecast, stock down 2.24. They should sell only 1% more vehicles than last year, remaining #2 behind GM worldwide. The downward revision is blamed on the slowing economic growth in the US, high oil prices & higher material costs. US sales will decline 7% this year.
Verizon (VZ), a Dow stock reported good earnings, down 66¢. A weak US economy is not expected to have a material effect on their results for the balance of the year. Cell phone business is strong & they will start bringing FIOS cable to NYC starting today.
Banks are leading the decline today, more profit taking after the rapid run-up a couple of weeks ago. Two Australian banks taking large write-offs on US loans in recent days hurt. Bank of America (BAC) is below 29, 5 points below its recent high.
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