Dow -45.10 (-0.37%)
Nasdaq +1.68 (+0.07%)
S&P 500 -4.59 (-0.34%)
News That Moved the Market
Financial Rollercoaster Continues. The markets bounced back after strong selling in the first half of the session. Citigroup (C, -4.3%) was under pressure early after the head of Dubai International Capital said the bank needs more funds and Merrill Lynch (MER, +2.5%) lowered its earnings forecast for Citi. Shares of the mega bank hit a nine-year low before Citigroup responded to the news by saying it is comfortable with its capital levels and would not seek new funds. The markets rallied hard after Citi came out with the release and The Financial Times reported bond insurer Ambac (ABK, +7.2%) is close to an agreement to receive a capital infusion . The deal could announce the deal as early as Wednesday. Though there was a lot of other news, this market showed today that the financial headlines truly spark rallies and sell-offs.
Intel Decreases Profitability Forecast. Intel (INTC, +0.05%) lowered its gross profit-margin forecast for Q1, citing lower flash memory prices. The company now sees margins coming in between 53%-55%, down from 55%-57%.
Housing Still Troubled, Bernanke Wants Banks To Do More. Fed Chairman Ben Bernanke caused a sell-off early in the market when he said foreclosures in the troubled U.S. housing market were likely to continue. He suggested banks write down the principal amount on mortgage loans for home owners who are at risk of defaulting. "Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure," he explained.
Quick Tics: Jackson Hewitt Tax Service Inc. (JTX, -32.6%) reported a 34% drop in fiscal Q3 earnings…Cisco's (CSCO, -0.5%) CEO John Chambers helped the rally by saying the difficulties in the market would likely be "short-lived and shallow"…Commodities sold-off on demand concerns.
Notable Earnings (Full List Here):
Chico's FAS, Inc. (CHS) Before Open
Saks Incorporated (SKS) Before Open
8:15 AM: ADP Employment Report
8:30 AM: Productivity and Costs
10:00 AM: Factory Orders
10:00 AM: ISM Non-Mfg Survey
10:30 AM: Crude Inventories
2:00 PM: Beige Book