It was looking like we were about to have a good day at about 8:35 EST this morning after seeing flat CPI. But the day ended up long enough and bad that it feels like that CPI report came out a week ago because it was such a long day.
But today was all about Bear Stearns (NYSE: BSC), and you've already heard the news. If you have ever wondered what a run on the bank looks like and what a major institution on verge of implosion looks like, you just saw it today. Bear Stearns closed down over 45% to $30.85 on over 185 million shares. Free marketeers don't want a bailout.
It's bad enough out there that even someone out of the National Bureau of Economic Research is worried about a severe recession. If you want any good news on the day, it would be that the market didn't close on lows and it wasn't widespread panic falling out into every sector.
- DJIA 11,951.09 (-194.65; -1.60%)
- S&P500 1,288.14 (-27.34; -2.08%)
- NASDAQ 2,212.49 (-51.12; -2.26%)
- 10YR-TBond 3.4210% (-0.113%)
- The VIX closed at 31.16, up 3.87
- List of 52-week lows was a monster long list.
Washington Mutual (NYSE: WM) was the worst "other" financial institution hit today after it took a debt rating downgrade from Moody's; status basically junk after cut to Baa3 with "negative" outlook; shares down almost 13% at $10.57. Most banks fared better, but if you owned a brokerage firm stock you likely saw another 52-week low today.
GameStop (NYSE: GME) was one of the few standouts after stronger than expected video game industry sales from February came out; shares rose almost 4% to $49.05.
Boeing Co. (NYSE: BA) was also a survivor today with a 2.6% gain to $76.11 after getting an upgrade at Morgan Stanley; TOP 10 Pre-market Calls.
DuPont (NYSE: DD) closed down almost 1% at $46.93, despite its slightly raised guidance. Genentech (NYSE: DNA) also closed down 3% at $78.83, despite it lifting the lower-end of its earnings band; sell the news was the theme.
There is one phrase that is getting rather old out of the media: "Another rough day on Wall Street..." It's becoming the mantra, but that's how a bear market feels. They are usually long and painful, but ultimately it will pass. Next week we have the Visa IPO to look forward to, hopefully.
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Reader Comments (Page 1 of 1)
3-15-2008 @ 12:50PM
Paul Prager said...
Have gmac7% bonds...............Interest rates have taken a dive of 50-60%.
Bonds too have lost 20 %. Used to believe that when interest rates went down, bonds went up. What is going on?
3-16-2008 @ 10:49AM
Bob said...
Why do you have this drum beat for WaMu...it's not good, but it's not a junk rating.