12 Years Of Gain On The Dow Is Wiped Out

What’s Happening In The Market Now..

  • The market opened mixed this morning after investors were reassured by the government’s latest statement that it plans more aid for the banking system. The markets eventually kept going lower, with Dow and S&P500 falling to 1997 levels.
  • The Treasury and other departments said in a joint statement, “the U.S. government stands firmly behind the banking system during this period.”
  • The improved confidence in financial markets, however, boosted oil prices above $40 a barrel despite a steady stream of bleak corporate and economic news.
  • Also bringing pressure on the market President Barack Obama is discussing how to curb a burgeoning federal deficit laden with Social Security, Medicare and Medicaid obligations.
  • Sectors starting the day out strong include banks, diversified financial services and, auto manufacturing while managed healthcare, steel and healthcare facilities are down.
  • Citigroup shares rose on Monday after the White House repeated that President Barack Obama believes keeping banks in private hands is “the best way to go.
  • American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history

Stocks Most Watched Today
Morgan Stanley (MS), Transocean Ltd. (RIG), WellPoint Inc. (WLP), UAL Corporation (UAUA), Best Buy Company (BBY), State Street Corp (STT), Peabody Energy Corporation (BTU), Walter Industries (WLT), Loews Corporation (L), Limited Brands Inc (LTD), Hess Corporation (HES), Humana Inc (HUM), Arcelor Mittal (MT) and Coventry Healthcare Inc (CVH)

Today’s News Leaders…
Citigroup Inc (C), Morgan Stanley (MS), International Business Machines Corp (IBM), US Airways Group Inc (LCC) and Campbell Soup Co (CPB).

Analysts Favorites…
Goldman Sachs Group Inc (GS), Kohls Corporation (KSS), Aeropostale Inc (ARO), Clorox Co (CLX) and Sears Holdings Corporation (SHLD).

ETFs and HOLDRs Watched Today…
Technology Select Sector (XLK), PowerShares DB Agricultural Fund (DBA), SPDR S&P China (GXC), Market Vectors Steel Index Fund (SLX) and PowerShares DB Commodity Index Tracking Fund (DBC).

Tip of the Day…
New options come out today. This is a good time to look for trades to put the money you made Friday, in expiring positions, back to work.

Source: MarketIntelligenceCenter.com