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: Financials, Economic Data Lead Stocks Lower


Housing writedown concerns stall rally.


Bulls failed to get over the hump as banking woes and sour economic data weighed on stocks. The Dow Industrials closed -109 points, or -0.88% to 12,422, the S&P 500 fell -11.8 points, or -0.88% to 1341, and the Nasdaq Composite dropped -16.7 points, or -0.71% to 2,324.

Financial stocks started on a weak note after Oppenheimer analyst Meredith Whitney said Citigroup (C) would suffer losses four times greater than what she had previously forecasted. According to Bloomberg, Whitney, who was the first to predict that Citigroup would cut its dividend to preserve capital, said the company may write down $13.1 billion in losses tied to leveraged loans and collateralized debt obligations. Further, she noted that it wouldn't be her last reduction and anticipated further downside to estimates and stocks.

The news took a toll on the banking sector. Lehman Brothers (LEH) fell -6% to $42.49. Wachovia (WB) fell -6.7% to $28.02, and Morgan Stanley (MS) fell -3.3% to $47.79. For context, read Toddo's Random Thoughts.

In housing, home builders declined after the Commerce Department said sales of new homes fell 1.8% in February. The figure brought new home sales to its lowest level in 13 years but was basically inline with expectations. The homebuilders ETF (XHB) dropped almost -6% to $21.55. Individual stocks included Beazer Homes (BZH) falling -13.7% to $8.75. Standard Pacific (SPF) fell -9% to $4.78, and Meritage Homes (MTH) lost -9.8% to $18.82.

Elsewhere, Deere (DE) fell -1.7% to $80.82, and Terex (TEX) fell -1.4% after the durable goods report came in less than expected. Orders for big ticket items fell -1.7% in February vs. estimates of +0.7%. Less transportation, the figure fell -2.6% vs. -0.3% cons. Other decliners included UPS (UPS) -0.83% to $72.73, and Burlington Northern (BNI) -1.3% to $94.10. For more, read Professor Kevin Depew's Five Things You Need To Know.

Commodities were strong. Crude oil surged +4.78 to 106.13. Gold added +15.20 to 950.20. Silver finished +0.578 to 18.340, and copper gained +7.05 to 377.00.

Read Professor Sally Limantour's Commodity Bull Market Alive And Well.

The dollar index declined -0.829 to 71.447.

For more Buzz insight, check out 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, GOOG, CF, MOS, IBM, SPX, JBL, beta

Some bearish trade or investment ideas: MOT, S, AEM, FMCN, HOC, GVA, NCC

See you on the flipside. Have a good 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