Stocks started higher but the Dow just slipped into the red. Advancers lead decliners 2-1 & NAZ is up 7. Banks also waffled as the S&P 500 FINANCIALS INDEX started higher but slipped back to break even
The Treasury will expand its TARP program to include life insurers that are banks or own a thrift. Major names included are: Prudential Financial (PRU), Hartford Financial Services Group (HIG) & Lincoln National (LNC). Each is up about 2½.
Insurers rise on report gov't may extend TARP- AP
Pulte Homes (PHM) is buying Centex (CTX) for $1.3B in stock to create the country's largest home builder. Both stocks are about 10, PHM is down 50¢ while CTX is up 2. Pulte believes the combined business will allow it to return to profitability faster.
Pulte Homes agrees to buy Centex in $1.3B deal- AP
US mortgage applications rose 4.7% last week. Even though the mortgage rate ticked up 12 basis points to 4.73%, it remains at historic low levels. Mortgages are used for purchasing & refinancing.
U.S. mortgage applications up- Reuters
As part of the bailout program for the autos, the gov will guarantee that GM & Chrysler suppliers will be paid, for a fee of 2-3%. Auto suppliers are typically penny stocks, but rose a little on the news.
•GM Says $5 Billion Treasury Program to Aid Auto Suppliers Has Been Reached
Markets are absorbing the ugly news from Alcoa (AA) pretty well, market friendly news stories today are helping. They like gov efforts to help companies get thru the credit crisis mess.
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