Closing Bell: Market tank not even helped by Spitzer implosion

Posted Mar 10th 2008 4:51PM by Jon Ogg
Filed under: Citigroup Inc. (C), Bear Stearns Cos (BSC)

Today's markets were foiled with worries of counter-party risks, and even the "denying of rumors" didn't manage to help. You know that headlines of "Oil Nearing $108" isn't a huge help there. On the economic front, we saw some old data on January Wholesale inventories being +0.8%, above a forecast of +0.5%.

New York's Governor Eliot Spitzer has been caught up in a prostitution ring, and even though he is no longer Attorney General this didn't even manage to cheer Wall Street up after years of having Spitzer take down insurance companies, Dick Grasso, and more. Below are the day's unofficial closing prices:

DJIA 11,740.15 (-153.54; -1.29%)
S&P500 1,273.37 (-20.00; -1.55%)
NASDAQ 2,169.34 (-43.15; -1.95%)
10-YR T-Bond 3.438%; -0.1030 (bonds still trading)

There were a few major standout stocks today, mostly to the downside.

The Bear Stearns Companies Inc. (NYSE: BSC) was the major target of rumors of it facing a liquidity crisis today, although this was refuted numerous times on CNBC. Shares closed today down 10.8% at another 52-week low of $62.50. Citigroup Inc. (NYSE: C) and Fannie Mae (NYSE: FNM) closed under the $20.00 hurdle.

The major biotech implosion today came in the offices of Keryx Biopharmaceuticals (NASDAQ: KERX) with more than an 80% drop to $0.63 . Its lead product candidate for diabetes failed to show better results than the placebo, and you know that has to hurt. Shares are now trading down at what many consider an implied cash value after this quarter's cash burn rate.

We put together a list of Eliot Spitzer ex-target stocks, and even these all closed down and some were at new 52-week lows. Speaking of 52-week lows, there was another big stand-out list today.

Tags: bear market, BearMarket, BSC, C, FNM, inthenews, inventories, KERX, Spitzer

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Reader Comments (Page 1 of 1)

3-11-2008 @ 7:22AM

TX CHL Instructor said...

"Oil Nearing $108"

In case you have been living under a rock, the price of oil is a symptom, not a cause.

The cause is the over $2 TRILLION we spent (mostly borrowed) invading two mideast countries. In order to pay for this, we are going to have to do one or more of 1) inflation, 2) tax increases, 3) economic growth. #3 (the only scenario that doesn't involve major decrease in the overall standard of living) doesn't appear to be happening, and we haven't got the will for #2. Look for 1970's style inflation -- only worse this time. Sigh. Wars are just bad for republics, even "justified" wars.

As for the scumbag Spitzer, his real crime is not engaging a prostitute. It's being a damned hypocrite (wasting taxpayers money prosecuting victimless crimes that he secretly enjoyed himself). But by and large, that tag fits most politicians.