Stocks bounced back slightly on the opening, but the optimism faded. Dow was up 75 then settled back which was followed by a second wind carrying it to a triple digit gain. There was bargain hunting for MLPs, REITS & financials. Meanwhile VIX slipped 1½ to 67.
The recession is predicted to be one of the worst in history. Already most of Europe along with many Asian countries economies already have recession conditions.
•Recession in U.S. May Be Longest Since World War II as Job Losses Increase
Corp news continues very glum. General Electric (GE), a Dow stock & one of the few remaining companies with the elite rating of AAA for its debt, said Q4 earnings are coming in at the low end of estimates. GE, also an S&P 500 Dividend Aristocrat, reaffirmed it will continue the div in 2009 (forget about increasing it as it has done in the past). The pain they feel is another indication of how bad the recession is biting.
•GE Profit This Quarter Will Be at Low End of Forecast; Dividend Maintained
Sears (SHLD) and Staples (SPLS) reported bleak results & outlooks. However, Sears expanded its stock buyback program.
Sears suffers 3Q loss on weak US, Kmart sales- AP
Staples 3Q profit drops 43 percent on charges- AP
The auto makers will be begging for $25B in aid from congress this week. This time the head of Ford said he will be driving to DC, versus taking a private jet last time. Maybe the others will also try driving.
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