On more dreary banking news, S&P 500 FINANCIALS INDEX is heading back down to the 108 low set 2 days ago.
| Value 113.95 | Change -10.21 | % Change -8.2% |
More banks results are coming in, and their reports are just plain depressing. In the link below, M&T Bank Corp (MTB) posted higher earnings while BB&T (BBT) & Comerica (CMA) had lower profits which at least matched lowered estimates. The 4 other banks just had ugly news.
Other averages are weak. REITs are hurting but the Aleiran MLP Index is down "only" 3 to 190. The 190 floor is providing support. Junk bonds are mixed, not all that bad, while the VIX spiked up 5+ towards 52. Fears are on the rise.
Oil fell on the increased fears of the global economic recession.
| CLH09.NYM | ...Crude Oil Mar 09 | ...41.11 | ... 2.44 .......(5.6%) |
Jobless claims jumped 62K to 589K, the worst level in 26 years. What's there to say? This spells a very serious recession.
China's economy grew in the last quarter at a 6.8% rate, lowest figure in 7 years. China is hurt by shrinking export business & recession problems at home.
China’s GDP Growth Slowed to 6.8% in Fourth Quarter
Microsoft (MSFT), a Dow stock, will cut 5K jobs, the first time it has had to layoff employees, after a disappointing earnings release. In their Q2 (just completed), they only eaked out a 2% sales gain which was almost $1B below their forecast. EPS fell to 47¢ from 50¢ last year. MSFT, once THE growth stock, is selling at an 11 year low & may be headed even lower.
- Microsoft to slash 5,000 jobs, misses on 2Q profit- AP
- Steve Ballmer's Entire Memo to the Microsoft Troops About Layoffs and Weak Results- All Things Digital
Microsoft --- history
General Electric (GE), another Dow stock & S&P 500 Dividend Aristocrat, is down 50¢ to 12½, a 13 year low. There is widespread talk that they will have to cut the div after earnings are released tomorrow. Dow is under 8K again, looks like it wants to test the 7½K floor set 2 months ago.
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