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Minyanville's Market Recap: Feds Speaks, Markets Barely Budge


Major heads of Finance speak, yet markets barely budge...

Stocks moved little today even as a number of Fed officials issued statements addressing the growing concerns in the marketplace. The Dow finished down 0.24% at 13,090.05, S&P finished up 0.09% at 1446.90, and the Nasdaq finished up 0.51% at 2521.30.

Secretary Treasurer Hank Paulson started the morning off with an interview on CNBC. Paulson stated that the economy was strong and that current issues were not due to weak economic conditions before heading off to a closed-door meeting with Fed Chairman Ben Bernanke and Senate Banking Committee Chairman Christopher Dodd.

Later, Senator Dodd said in a press conference calling for Bernanke and Paulson to use all tools necessary to maintain liquidity in the markets. Richmond Fed President Jeffrey Lacker even chimed in reiterating that the Fed was guided by economic outlook and that market volatility did not necessitate a rate cut. Please read Mr. Practical's take of current market conditions in his article Minyan Mailbag: Derivative Debt. Also be sure to look at Mr. Practical's Credit Crunch Not Going Away.

The housing sector had a number of issues to deal with this morning. A report by RealtyTrac showed a 93% increase in foreclosures in the U.S. on a year over year basis. Bank of America (BAC) also downgraded Toll Brothers (TOL), Hovnanian (HOV), and Standard Pacific (SPF) citing mortgage distress increasing liquidity fears. Get Professor Depew's take on the RealyTrac report in his daily Five Things You Need To Know.

Ironically a few notable lenders performed very strong today. Capital One Financial (COF) gained 2.6% on the day after saying it was closing its wholesale mortgage business and cutting 1,900 jobs. Countrywide Financial (CFC)surged today as rumors spread that Warren Buffet's Berkshire Hathaway (BRK.A) was interested in taking over the company.

If, as Paulson says, the markets are repricing risk, then Professor Sedacca's Risk in Mispricing Risk is a must read. Click to our News and Views page for more commentary relevant to your trading strategies.

Below is a recap of just some of the idea flow that appeared on today's Buzz and Banter. Please note that some stocks may appear in both bullish and bearish categories due to short and long term trades by our many Minyanville professors.

Some bullish trade or investment ideas: BIDU, AAPL, UA, AMZN, EBAY, WYNN, ISIS, CALM, TGT, DKS, ISRG, FXY, GOOG, BRCM, APKT, BAY, ACOR, CPHD,

Some bearish trade or investment ideas: CCJ, SPX, BKX, QQQQ, TOL, HOV, SPF, TTM, AAPL, MCBI

Click here for our Buzz Bits, highlighting of the idea flow on the Buzz and Banter. Evaluate your strategies and come ready to play tomorrow! Sleep tight, Hoofy and Boo have something in store for you. Good night!
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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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