This was a choppy day with markets ending lower. Dow had been down 250 early on followed by a big push up then down, ending down 92 with banks once again leading the charge down, but this time joined by energy (CVX & XOM). Decliners were ahead of advancers 3-1, NAZ eaked out a tiny gain & S&P 500 fell 13 to 1215 (for those who are looking at support levels). Volume on NYSE was higher at 1.85B (1½B used to be typical in the "old" days). The problem when compared with the past, nothing was decided today. More bleeding can be expected.
Banks & financials were front & center today. It's difficult to comprehend the damage done to bank stocks in recent days & weeks. Citigroup (C), a Dow stock, is 15. Bank of America (BAC), another Dow stock is 18½ with a yield of almost 14%, assuming you believe it will hold. By the end of next week, they should announce the Q3 div & the market is programming in an ugly cut. Many other banks are trading around 5. Fannie Mae (FNM) & Freddie Mac (FRE) made the list of biggest decliners on NYSE as news reports are flying, not to mention testimony given in congress today.
Oil fell 6½, the biggest decline in 17 years, but that gave little comfort to traders. Oil stocks were hit, along with MLPs as the Alerian MLP index fell more than 6 trying to go back to the 262 low. Intel (INTC) had a good Q2 earnings report after hours, the stock was up 24¢ during the regular day, but that may get lost with all the attention on financials. Hang on for another wild day tomorrow.
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