Pending home sales rose 6.3% in Dec on lower prices, a ray of hope in an otherwise depressing housing market. Unfortunately, the housing depression keeps going from bad to worse. There are 19M vacant homes, 6.7% ahead of the prior year's record total. This stock housing will be a problem for years.
•Pending Home Resales in U.S. Unexpectedly Rise 6.3% as Prices, Rates Fall
•Record 19 Million U.S. Homes Stood Vacant at End of 2008 on Bank Seizures
Citigroup (C), a Dow stock with a 3 handle, as the largest beneficiary of the TARP bailout program said it will start lending money. In a related move, they are trying to get out of purchasing the naming rights (Citi Stadium) to the new Shea Stadium in NY. After cancelling the purchase of a $50M jet, they're learning about public opinion (even though such a sign woiuld have marketing value).
PNC Financial (PNC) reported a big loss & almost 6K layoffs (about 10% of the workforce), down 4. Banking losses are a big part of the reason banks haven't been making loans. S&P 500 FINANCIALS INDEX is down 2 to 122, remaining near its recent deary 108 low.
Merck (MRK), Dow stock & Dividend Aristocrat, announced earnings that beat estimates & sharply ahead of last year's loss dragged down by an enormous charge for Vioxx lawsuits. The stock was up 80¢ in spite of lower business for key drugs.
The Senate bailout bill is larger than the House bill due to adding help for relief on the ATM (alternative minimum tax). Now they're trying to figure out how quickly the bailout money will be spent. While they haggle, confused markets are content to sit on the sidelines.
- Senate stimulus would total $885B: CBO- CNNMoney.com
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