| Value 139.91 | Change -9.27 | % Change -6.2% |
Financials were weighed down by Bank of America (BAC), a Dow stock. BAC reported earnings which beat dreary estimates & ahead of last year's awful earnings number, but there is a growing awareness that bad loans are hurting them. They had to take a $13+B provision for losses. The purchases of Countrywide & Merrill Lynch last year don't leave a good legacy. The stock fell 1½ to the low 9s. The stock has had a nice run from its lows but has given back a lot in just the last week:
Bank of America --- 2 weeks
•Bank of America Drops After Adding $6.4 Billion to Reserves for Bad Loans
In sympathy, other groups I follow are selling off. The Alerian MLP Index is down 3 to the 201's. the Dow Jones REIT Index is down 7 & junk bonds are lower. However, the VIX is having one of its biggest gains this year, up 4 to 38.
Alerian MLP Index --- 2 months
Oil had one of its biggest declines this year, down almost $4. This market is being driven by falling stock prices & the strong dollar.
| CLK09.NYM | ..Crude Oil May 09 | ...46.61 | ... 3.72.......(7.39%) |
•Oil Falls Most in Seven Weeks as Dollar Rises, Demand Drops Amid Recession
Oracle (ORCL) is buying Sun Microsystems (JAVA) after IBM's attempt recently fell thru. As is typical in acquisitions, JAVA is up almost 2½ while ORCL is down ½. It's disappointing that this buyout news is not bleeding to other stocks (raising their stock prices).
•Oracle Will Buy Sun Microsystems for $7.4 Billion After IBM Deal Collapsed
Dow is back down to 7.9K. Reality about the quality of loan portfolios is starting to bite hard after the BAC report. This will be the biggest week for earnings. If today is any indication, this could be a rough week for stocks.
Dow Jones Industrials --- 2 months
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