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: Stocks Fall on Bernanke's Gloom


Today was more of a Valentine's Day Massacre rather than a day of love. Stocks fell.

The bulls received no love on Valentine's Day. The Dow Industrials fell -175 points, or -1.40% to 12,376, the S&P 500 fell -18 points, or -1.34% to 1,348, and the Nasdaq Composite lost -41 points, or -1.74% to 2,332.

Stocks fell today, breaking a three-day winning streak after Fed Chairman Ben Bernanke made gloomy comments about the nation's economic conditions. In testimony this morning before the Senate Banking Committee, Bernanke hinted at further rate cuts saying the Fed would act as needed to support growth and provide insurance against downside risks. Bernanke added, however, that those downside risks were higher, citing the financial markets with banks becoming "more restrictive" in lending. Financial stocks took a beating as a result of the statements. Notable decliners included Bear Stearns (BSC) -2.5% to $78.47, Goldman Sachs (GS) -2% to $176.56, Merrill Lynch (MER) -2.8% to $50.72, and Citigroup (C) nearing new lows -2.3% to $25.74. For more, read Toddo's First Blush on Bernanke. Also check out today's Random Thoughts.

Retail stocks fell as well. Professor Jeff Macke's comments on Liz Claiborne (LIZ) highlighted the general concern in the sector. "LIZ is getting smacked around today. We've had CEO Bill McComb on Fast Money a few times. He's a smart, stand-up guy trying to work a turnaround in the middle of a tsunami for fashion apparel makers. As top-vulture Warren Buffett says, when a good manager meets a bad business, the business keeps its reputation." The Retail Holders (RTH) fell -2.0% to $91.62: Individual stocks included Target (TGT) -2.5% to $53.14, BJ's (BJ) -3% to $32.08, and Sears Holdings (SHLD) -3.4% to $97.50. Get insight into the bear case in Professor Depew's Five Things You Need To Know.

In commodities, crude oil gained +2.18 to 95.45. Silver fell -0.053 to 17.300, and copper fell -3.75 to 348.80. Gold reversed its early losses after Bernanke's comments to settle +1.30 to 907.80.

"Inflation should moderate?" said Professor Lewis, "That's amusing to me and the gold market is smarter than that as we see gold rising on those comments. They have no choice but to inflate, and he's telling you that's exactly what he will do when he says "will provide insurance against downside risks." For another perspective, read Professors Kathy Lien and Boris Schlossberg's article Gold Reaching For The Sky.

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: VMI, AAPL, BSC, C, EUV, CHS, SDS, MSFT, CSCO, AACC, PRAA, CCRT, NVDA, YHOO, XXH, XLF, Gold

Some bearish trade or investment ideas: WB, BSC, LEH, GS, AMAT, NILE, TLT, Financials, dollar

Make sure you check out our Valentine's Day Package. See you tomorrow for Freaky Friday! Have a great night!

< 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