Worries are overwhelming the traders. It's difficult to keep track of all the banks, especially big ones, selling for 5 (that's $5 per share). The Bloomberg chart from yesterday (below) shows Dow is down 133 (off the lows of down more than 200), decliners ahead of advancers 9-1 (don't see that too often) while NAZ is down 21. S&P 500 is down to 1211, former important lines of support are now history! Banks & related financials are leading today's plunge. FED Chairman Bernanke is testifying trying to explain what's happening with banks & what to expect going forward. The FDIC said bank deposits are safe. They better be, but a nervous public needs reassurance. One tiny glimmer of optimism is First Horizon (FHN), now a $5 stock, was up today. For those who want to read more about bank worries, read on. This financial mess will just have to play out, keeping the powder dry seems to be a good tactic for the time being.
There is corp news. Retail sales inched up 0.1% in June, no great surprise. Going forward, help from tax rebates is pretty much over. JNJ (JNJ), a Dow stock & member of the S&P Dividend Aristocrat list, is up 1.28 on a favorable earnings report. But Kimberly Clark (KMB), another member of that elite div list, is down after cutting guidance which brought downgrades for the stock. General Motors (GM), another Dow stock, eliminated the div, is laying off workers & cutting truck production to help preserve cash.
On this gloomy day it's good to keep in mind investment ideas for buying beaten up stocks, better times are coming. We all need to be reminded.
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