Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Recap: Markets Finish Week on Sour Note


AIG jitters started an ugly Friday; Dow falls over 300 points.

Stocks fell a second consecutive day. The Dow Industrials fell -315 points, or -2.5% to 12,266, the S&P 500 dropped -37 points, or -2.71% to 1,330, and the Nasdaq Composite lost -60 points, or -2.5% to 2,271.

The equity market opened very weak this morning after digesting the earnings report of American International Group (AIG). The world's largest insurer reported losses of $11.1 billion on credit default swaps backing subprime CDOs which contributed to a $5.3 billion loss in the fourth quarter, the largest in the firm's 90-year history. Further in its conference call the company noted that it expects to see more losses in 2008 and property values falling another 7-8%. For more read Minyan Editor Andrew Jeffery's column AIG's Evaporating Balance Sheet.

The news put obvious pressure on the financial sector heightening concerns of credit market turmoil. Adding to the worries were UBS stating financial firms were likely to face $600 bln from the credit crisis and Deutsche Bank cutting the estimates of Morgan Stanley (MS) and Bear Stearns (BSC). Those stocks fell -5.14% to $42.12 and -5.18% to $79.86 respectively. Other stocks included JP Morgan (JPM) dropping -4.2% to $40.65, Wachovia (WB) closing -5.3% to $30.62, and Goldman Sachs (GS) fell -4.0% to 169.63. Check out today's Random Thoughts.

Although figures came in greater than expected, economic data failed to provide a catalyst. The Commerce Department reported consumer spending rose 0.4% in January vs. expectations of 0.2%. Personal Income increased 0.35 vs. 0.2% consensus. Also the inflation data was inline with core PCE figures coming in at 0.3% on a month-over-month basis. For more read Professor Kevin Depew's Five Things You Need To Know.

In other parts, the tech sector took a beating. Notable losers included the high beta stocks: Apple (AAPL) falling -3.6% to $125.15. Research In Motion (RIMM) fell -4.46% to $104.00. Garmin (GRMN) lost -3.10% to $58.52.

In commodities, crude oil fell -0.85 to 101.74. Gold added +8.80 to 976.30. Silver gained +0.178 to 19.808, and copper fell -1.15 to 385.20.

The dollar index gained +0.008 to 73.729.

For more summaries, click on Minyanville's Buzz Bits.

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: BIDU, AKAM, GOOG, LLNW, OVTI, CHNR, GILD, DELL, CSCO, AAPL

Some bearish trade or investment ideas: LEH, MER, GLD, HRS, CLF, CF, AEM, GOLD, LNN, ITRI, CRM, FDRY, IM, MVSN, VNO, BSC, GS, JPM

Have an awesome weekend, Minyans. See you bright and early, Monday!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos