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Minyanville's Market Recap: Banks Tap Discount Window, Stocks Finish Strong


Banks give the Street confidence by accessing Fed discount window. Indexes go higher.

Stocks ended higher today. The Dow added 145 points to finish at 13236, S&P finished up 16 points at 1464, and the Nasdaq finished up 31 points at 2552.

A week after Deutsche Bank (DB) first accessed the discount window with the Fed, four of Wall Street's biggest banks stated they were following with the same move. JP Morgan (JPM), Citigroup (C), Bank of America (BAC), and Wachovia (WB) all issued a joint press release saying they accessed the Federal Reserve's discount window for $500 mln each. The banks stated that the main purpose was to show leadership in using the Fed and had adequate liquidity on their books. These moves have raised more than a few eyebrows at the 'Ville. Please read Bullets Over Broadway: The Street Taps the Discount Window for what Toddo thinks this could possibly mean.

Late in the trading day Lehman Brothers (LEH) stated it was shutting its BNC mortgage unit resulting in a loss of 1,200 jobs, $25 mln charge, and $27 mln goodwill write-down.

Accredited Home Lenders (LEND) also announced it was no longer accepting loan applications and would cut more than half its work force due to ongoing turmoil from the subprime crisis.

In some bullish news, Nymex (NMX) jumped $8.29 to $127.07 as the company stated it has held takeover talks to expand in Europe. Professor Udall mentioned this on the Buzz and Banter, that the news was "positive in the short term until traders get tired of waiting for a deal announcement."

We also noticed Jarden Corporation (JAH) making a move today. Barron's reported the CEO Martin Franklin bought approximately 15k shares on Friday at $31/share which sent the stock surging up almost 5% to finish at $33.09. Get Professor Adami's perspective on the company in his article Fun and Games With Jarden.

The following is a recap of the idea flow on today's Buzz & Banter (Get the Buzz Bits here! ). Please note that stocks may appear on both Bullish and Bearish categories due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: GOOG, AAPL, NMX, GS, NILE, ALGN, CNS, ANAD

Some bearish trade or investment ideas: CROX, GRMN, GS, TOL, C, GRMN, NOV

Rest up Minyans. And have a laugh with Hoofy and Boo's new video, The Trump Card, if you haven't done so already. Have a good night and we'll see you bright and early tomorrow morning!
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.

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