Minyanville's Market Recap: The Strike Is On, Stocks End The Day Lower
The markets were up this morning but seemed to turn as GM's workers went on strike! Stocks ended the day lower.
Stocks were up for much of the morning even with a bit of bearish news weighing on the financial sector. News of Deutsche Bank (DB) writing down as much as $2.4 bln in leveraged loan commitments sent the shares falling approximately 2% in the premarket. DB ended the day down -2.27%. Other notables included Morgan Stanley (MS) falling -3.34%, Bear Stearns (BSC) losing -3.69%, and Lehman Brothers (LEH) losing -2.5%. Goldman Sachs (GS) broke with the pack gaining +0.21%. Toddo noted this on the Buzz as it was his biggest bank short. "Don't you love it when that happens?" he said. Please read Monday Morning Quarterback: Assigning Reason To The FOMC Rhyme for more insight into this trade. In addition, please read Minyan Peter's newest contribution Financial Services Highlights: the Race Is On for updated information on the sector.
The markets seemed to turn around mid-day as the General Motors (GM)/UAW deadline passed. Although both sides were reported to be close to an agreement, no deal was reached and workers officially went on strike. Nonetheless, GM shares moved higher as union workers walked. GM did succumb to the pressure falling -0.57% on the day. Ford (F) and Chrysler (DAI) moved higher, however, gaining 3% and 1.2% respectively.
Technology shares seemed to do well. The most notable was Apple (AAPL) performing brilliantly in today's session breaking above its 52 week high. Dr. J noted on the Buzz unusual options activity as the stock proceeded to close +2.74%. Professor Udall has been bullish on this stock for quite some time. Read his original column 21 Bullish Predictions For Tech.
Dell (DELL) was another company that closed higher on a down day. The company made headlines this morning with its plans to expand its presence in China using Gome Group, the country's largest electronics retailer. (From WSJ) The stock finished higher closing up +0.36%. Read Professor Depew's Five Things You Need To Know as he gives more "color" on this story.
For more in-depth summaries of what happened on our Buzz & Banter, please click on our Buzz Bits.
Below is a recap of the idea flow on today's Buzz & Banter. 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: LMT, AAPL, ELON, QCOM, SVNT, VCLK, AAPL, GOOG, LVS, WYNN, NHWK, CIEN, HLIT, BBND, ARRS, BIDU, RIMM, PFE, JNJ, DGX, AMLN, GME, BRCM, HOKU, JASO, ASTI, UA
Some bearish trade or investment ideas: MTH, DAVE, RYL, MS, SPX, GS, DB, SHW, BSC, MS, NYT, HTZ
Here's a preview of what to expect for Tuesday's trading session. Click here to see the full radar.
10:00 Consumer Confidence: 104.5 cons
10:00 Existing Home Sales: 5.55 mln cons
Okay, Minyans. We hope you had a great day even though it's Monday. Don't stay up too late watching football! We'll see you bright and early tomorrow morning. Have a goodnight!
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