-
Bank Notes | College Planning | Debt | Elder Care | Employment | Estate Planning | Health Care | Insurance | Marriage & Divorce | Real Estate | Retirement | Taxes
-
Market Update by Mark Glassman (Author Archive)
Equities Close Lower as Traders Eye Stimulus
News at a Glance
- Stimulus Vote Set: Congress aims to pass bill today. Obama could sign it Monday.
- Get Down Again: Major indexes return to the red.
- In No Mood: Consumer sentiment falls below consensus.
- Steve Imitates Steve: MSFT to open retail stores, a la AAPL.
The Lowdown
The momentum that lifted stocks out of a deep hole Thursday fizzled on Friday as Wall Street waited on Washington before the long President's Day weekend.
Stocks were lower, as traders frowned on weak economic data, awaited more details on a new program to help homeowners avoid foreclosure and anticipated the official vote in Congress on the stimulus package. The Dow Jones Industrial Average dropped 82 points to 7850. The Nasdaq slipped 7 to 1534, and the S&P 500 had fallen 8 to 826.
In economic news, the February reading of the Consumer Sentiment Index came in below economists' expectations. The disappointing reading appeared to confirm the theory that the surprising retail report released earlier this week was more of a fluke than a sign of a return to spending.
News that the Obama administration is planning to throw an early lifeline to homeowners still in good standing helped lift the major indexes out of a funk on Wednesday. Reports suggested the plan could involve an infusion to government-sponsored mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE).
On Capitol Hill, late Friday lawmakers prepared to cast their votes for the $789 billion economic stimulus package, a bill forged by the White House and House and Senate leaders for both parties.
Also in Washington, the Commerce Department will have to wait a bit longer to put the name on the office of its next chief. Sen. Judd Gregg (R-N.H.) withdrew as the administration's commerce secretary nominee, pointing to fundamential policy differences with the president.
In earnings, Pepsi (PEP) saw its fourh quarter net fall but met estimates as much of the downward pressure came from one-time charges. Meanwhile, shares of Abercrombie & Fitch (ANF) rose after beating the Street.
In energy, crude prices rebounded after a tough week. By 4 p.m., oil traded up $3.81 at $37.79 a barrel.
World markets advanced. In Asia, Japan's Nikkei picked up 1.0%, while Hong Kong's Hang Seng climbed 2.5%. In Europe, the FTSE moved down 0.5% in afternoon trading.
Corporate News
- Microsoft (MSFT) plans to open its own chain of retail stores to sell computers loaded with the firm's software, the Associated Press reported. Microsoft tapped David Porter, the head of worldwide product distribution at DreamWorks Animation SKG (DWA) and a former Wal-Mart (WMT) executive, to lead the new retail division.
- Toyota (TM) announced sweeping cost-cutting measures at its North American facilities that will scale back vehicle production. The firm plans to offer buyouts to its North American employees, suspend executive bonuses, cut wages and scale back shifts. Toyota also announced a hiring freeze, halted overtime and suspended capital spending.
- General Motors (GM) does not plan to sell its share of its joint venture with China's SAIC to the partner firm, Reuters reported, citing a spokesman for the company. Reuters had reported earlier that anonymous sources said GM was in talks to sell its stake in the venture, China JV.
The Economy
- The Michigan Consumer Sentiment Index fell to a preliminary February reading of 56.2, down sharply from 61.2 in January, Reuters and the University of Michigan said. For February, economists had predicted the index would dip to 60.2. STORY
ReadMe
- The Wall Street Journal on the stimulus package: The hardest part of overseeing a $789 billion recovery bill could be making sure the money gets spent. STORY
- Forbes on non-profits: The economic slowdown is putting pressure on charities to find innovative ways of raising money. STORY
- The Big Money on a hidden economic indicator: Looking to measure the progress of the recovery? Just check the wedding announcements section of The New York Times. STORY
WatchMe
- Reuters on small business: Three former Wall Street bankers are turning Southeast Asian garbage into shoes. VIDEO
- CNBC on being laid off: Here are a few tips for coping with an enviroment still flooding with pink slips. VIDEO
- NBA Rookie Challenge: The annual game between the freshmen and the sophomores kicks off All-Star Weekend in Phoenix, Ariz. TNT, 9 p.m.
Order Reprints
-0.01
0.20
About Our Ads | Corrections | Custom Publishing | License Our Content | Media Kit | Press Room | Events | Site Map | Labs |
You Are Viewing: SmartMoney.com — Investing, Saving and Personal Finance.
