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.
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.
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!
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.
Daily Recap Newsletter