Banks have been leading market moves all week, that continued today. S&P 500 FINANCIALS INDEX fell, getting nearer its Nov low of 108. $12 buys 1 share of Bank of America (BAC) + 1 share of Citigroup (C) + 1 share of General Motors (GM), all in the Dow.
| Value 117.97 | Change -5.20 | % Change -4.2% |
The Alerian MLP Index rose 2 to the 205s (3 month high), but REITs fell & junk bond funds were weak. Oil had a good day, but remains near recent lows.
| CLH09.NYM | ..Crude Oil Mar 09 | ...37.76 | .. 3.78......(11.1%) |
The House passed the stimulus package & cut another couple billion $ out of the total. Now, on to the Senate
•House Passes Obama's $787 Billion Economic-Stimulus Plan in 246-183 Vote
Economists & consumers have dreary outlooks for the economy. The US economy is expected to shrink at a 5+% annualized rate during this qtr, worst performance in 27 years. Consumer confidence fell to 56.2, the lowest level since they aren't sure when. It may be headed for the lowest level on record, 51.7, set in May 1980 (when inflation, interest rates & unemployment were well into double digits). However, some economists see growth returning to the economy by late this year while unemployment will peak at 9% next year. No matter what, forecasts are grim.
- U.S. consumers, economists unanimously grim- Reuters
- This Counts as Wild Optimism: Economist Sees Modest GDP Growth in Late 2009- Tech Ticker
The administration will announce a plan next week to help home owners facing home foreclosure notices. Foreclosures hit 274K in Jan, 10th straight month with more than a ¼M filings. Already, JPMorgan (JPM), Citigroup (C) & Morgan Stanley (MS) agreed to suspend foreclosures until Mar, they're way of trying to be helpful.
•Obama Will Unveil Plans Next Week to Stem Foreclosures on Homes, Aide Says
Dow had another dreary week, learning to live under 8K in the last 4 days.
Dow Jones Indusrtials --- 1 week
2 comments:
It figures. Uncertainty will rule the day--I say--until a clear, concise plan is laid out to re-liquify the banking system, and to stem the deluge of home foreclosures, which threatens to steepen once the spillover of the sub-prime mortgages transcends into credit cards and their usurious rates of interest.
Good hearing from you. Bank bailout II is now on the table & has a fuzzy future. The administration will announce a mortgage foreclosure fix this week. "Make it up as we go along" is no fun for anybody, especially the markets.
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