Dow Jones --- 1 day
Decliners were ahead of advancers almost 4-1 & NAZ dropped 34. Google (GOOG), a key component of the index, after reporting good but not good enough earnings last night, fell 45. Banks were hit hard by the charges against GS. The Financial Index bounced off its lows (down 12), but still had one brutal day (with selling going into the close) after its recent advance.
S&P 500 FINANCIALS INDEX
| Value 219.93 | Change -8.71 | % Change -3.8% |
The Alerian MLP Index dropped 3+ to the 309s. The REIT index fell 4 to 200+. Even junk bond funds sold off on the bearish sentiment in the markets. But they, like MLPs, remain near recent highs. With increased uncertainty, Treasuries, but not gold, were in demand. The yield on the 10-year Treasury bond dropped 8 basis points to only 3.77%, the lower end of its recent range.
Alerian MLP Index --- 1 month
Dow Jones REIT Index - 1 Month
10-Year Treasury Yield Index - YTD
Oil & gold felt selling pressure from the stock markets. Oil is down to 83, a key support level for traders.
| CLK10.NYM | ..Crude Oil May 10 | ..83.16 | .. 2.35 ......(2.8%) |
| GCJ10.CMX | ..Gold Apr 10 | ..1,133.90 | .. 22.30 ......(1.9%) |
Goldman grabbed all the headlines. The issues involved are complicated, blurry & not well defined. But an SEC which has come under fire for not doing its job alerting investors to the upcoming financial crisis is able to strike back against an easy target, a big Wall Street investment bank. It is believed that GS will not be indicted but they are easy to beat up on, especially after making $Bs while so many others are struggling to find work. Their golden image (Warren Buffet has a big investment in GS) has clearly been tarnished & tarnished badly. The Senate was working on a banking bill for more regulations, especially over new financial products like those involved in this scandal. It looks like they will take it up next week. Banks have gone thru a flat period for 6 months while other stocks were in a rally mode. Then in Feb, after 2009 earnings were released, they found buyers. The index climbed more than 40 off its lows. Today GS plunged 23 to 161, dragging down the index. Its problems are being shared by all stocks.
SEC Sues Goldman, Alleging Subprime Fraud
Goldman Sachs --- YTD
This was a memorable day & has the potential to break the bullish sentiment driving stocks higher. Once again, 11K becomes important. Traders will decide whether to keep it as a floor or return to being a ceiling.
Dow Jones Industrials - 1 Month
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