Stocks tumbled on gloomy news. Where to begin? Dow fell 100 & nearing the important 12K support line, decliners ahead of advancers 3-1 & NAZ down 24. Morgan Stanley, (MS), reported lower earnings but beat lowered estimates. The stock was down 2.05 on negative expectations going forward. FedEx (FDX) reported a 4th qtr loss and sharply trimmed the estimate for next year sending the stock down 2.35. This is more troubling to me as they feel the pulse of the US economy & the a lessor extent the global economy. Oil is up pennies ahead of today's inventory report. Who knows what it will say or how the market will respond?
Banks are setting new multi year lows as shown for BAC & USB on the right. Div cuts are becoming more common for banks. Comerica (CMA), a member of the S&P 500 Div Aristocrat list, is down 2.39 ahead of their earnings announcement tomorrow. Key Bank (KEY), another member of the S&P 500 Div Aristocrat list, cut their div a couple of days ago & Fifth Third (FITB), down 2, cut today. When banks seek outside capital, new investors expect/demand div cuts. Sick banks are tough for stocks, looks like banks will lead Dow below 12K.
Showing posts with label Key Bank. Show all posts
Showing posts with label Key Bank. Show all posts
Wednesday, June 18, 2008
Thursday, June 12, 2008
Early gains reduced to modest gains late in the day
Markets started hot out of thee gate this AM, but lunchtime the gains slipped. At the close Dow was up 57, advancers over decliners only by 25% % NAZ was up 10, not impressive. NYSE volume continues at 1.3B. Financials (i.e. banks) were strong but much the gains were lost by day's end. Lehman Bros (LEH), down 1.05, continues as the hot story, investors are mulling over what the changes mean. Oil rebounded from early losses, ending with a gain of 36¢ to 136.74. Supply worries from Nigeria helped bring buyers back. Retail sales helped drive gains in the AM, however analysis showed that much of the larger than expected gains were due to higher gas & fuel sales (i.e. inflation driven), something we have to constantly think about in today's world. Besides oil, commodities prices were very strong. Corn, our leading crop & export, reached a record price of 7.18. The main use for corn is feeding farm animals, that price will bleed through to a lot of groceries. The Alerina MLP index broke it's support level of 290, down 1.26 to 288.74
Key Bank (KEY) & First Horizon (FHN) are banks who were members of the S&P 500 Dividend Aristocrat list. Their divs have been cut. If not off that prestigious list, they will come off shortly. There are about 60 on the list, but even a track record of over 25 year as of higher divs year does not guarantee the future.
Key Bank (KEY) & First Horizon (FHN) are banks who were members of the S&P 500 Dividend Aristocrat list. Their divs have been cut. If not off that prestigious list, they will come off shortly. There are about 60 on the list, but even a track record of over 25 year as of higher divs year does not guarantee the future.
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