S&P 500 still above November lows
The S&P 500 continued its slow trek towards its November intra-day low of 741.02, but has still yet to reach it. While there is far less panic and fear in today’s market than there was last November, the level of uncertainty still remains very high.
The fate of the financial system’s largest institutions is the biggest question mark at this point in time. Comments from Senate Banking Committee Chairman Christopher Dodd about the possibility of nationalizing banks “for a short time” sent Citigroup and Bank of America tumbling. Both companies’ stocks, at their current levels, are trading more like options that bet on the government’s forthcoming actions. (If anyone has a crystal ball, please contact me.)
The rally that started last November came to an abrupt stop when Treasury Secretary Tim Geithner could not provide specific details on how the government will rescue the financial system. Today, as the S&P 500 flirted with its November lows, the White House announced they will give the details of the financial bailout sometime next week and added that they are against nationalizing banks.
At this point, we can only hope that the details aren’t as opaque as last time.
Quick Hits
- Veteran Investors Get Jittery
- How The Mighty Banks Have Fallen
- Corporate Bond Trading Reaches Two-Year High on Record $224 Billion Sales
- American Budgets Have More to Spare for Home, Cars Than in 1955
Peter Lazaroff, Junior Analyst
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