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Market Recap: Ugly Monday, Retail, Financials Drag


Stocks fall as worries from the financial sector pound the markets again. The retail sector also fails to provide any lift. Markets fall.

U.S. stocks fell on Cyber Monday as the S&P erased all of its gains for the year. The Dow Industrials fell -237 points, or -1.83% to 12743, the S&P 500 fell -33 points, or -2.3% to 1407, and the Nasdaq Composite fell -55 points, or -2.14% to 2540.

Financial stocks suffered today as credit jitters hit the markets in full force. HSBC (HBC) was the cause for most concern as it announced it would bail out two of its funds by adding $45 bln of assets from its SIVs to its own balance sheets. The WSJ also reported that the bank stated it did not expect a near-term resolution of funding problems faced by vehicles it and other banks hold. Furthermore, the news coincided with a report that Goldman Sachs (GS) stated HSBC is facing approximately $12 bln in writedowns. Read Minyan Peter's Year End Focus: Get the Balance Sheet Down.

News from other companies also raised concerns on the overall financial sector as well. A report on CNBC stated that Citigroup (C), the nation's largest bank by assets, would need to cut its workforce by as many as 45,000. Although Citigroup defended itself, saying the numbers were not true, shares of the company hit a new 52 week low, losing -3.15%. Other financial stocks included Lehman Brothers (LEH) losing -5.59%, Countrywide (CFC) losing -10%, Fannie Mae (FNM) losing -10%, and Freddie Mac (FRE) losing -7.4%. For more read Toddo's Random Thoughts.

Retail stocks failed to provide a significant lift even as a report by ShopperTrak announced an 8.3% gain in sales on Black Friday. The report conflicted with one by the National Retail Federation that said out of 147 mln customers, or a 4.8% increase over last year, shoppers spent 3.5% less per person. The major retailers were hit hard with Wal-Mart (WMT) losing -1.5%, Macy's (M) down -6.0%, Target (TGT) down -3.4%, and Sears Holdings (SHLD) falling -4.3%. For more, read Professor Depew's Five Things You Need To Know.

In commodities, Crude oil closed lower, falling -0.48 to 97.70. Gold added +1.80 points to 826.50. Silver added +0.09 to 14.83 and copper added +2.10 to 305.05.

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

Idea Flow

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: BKX, C, SGP, CREE, SNE, VMW, SPY, QQQQ, GES, MA, DE, CNH, CSCO, BMRN, SGEN, PRX, MEDX

Some bearish trade or investment ideas: T, TSCM, CSCO, SGP, MRK, GOOG

The worst is over, Minyans! Tomorrow is Tuesday. Have a great night!
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No positions in stocks mentioned.

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