News That Moved Wednesday's Market

U.S. Markets

Dow -49.18 (-0.39%)
Nasdaq -26.64 (-1.13%)
S&P 500 -11.05 (-0.81%)

News That Moved the Market

Crude Jumps and UPS Falls. Markets were under pressure the whole session, with buyers never really getting a chance to gain control. Economic bellwether UPS (UPS, -3.7%) lowered its first quarter guidance, blaming higher fuel costs, U.S. economic weakness, and lower domestic volume. The company expects to earn $0.86 -$0.87/share, well below the $0.93/share analysts were anticipating. Later in the morning, the Department of Energy reported an unexpected decline in oil inventories, causing crude to rally to all-time highs. Crude touched $112.21/barrel, but gave back some gains to finish up 2.0% at $110.93/barrel. The markets have been able to tread water the past couple session despite some discouraging news, but the overall weakness today showed a fall back to February lows is probable unless a positive catalyst is able to grab the market's attention.

Citi to Unload $12 Billion of Loans and Bonds. Citigroup (C, -0.8%) is close to selling $12 billion worth of troubled debt to private equity firms, according to the Wall Street Journal. The average price for the debt will be around $0.90 on the dollar, and the firms that were reportedly involved included Apollo Management, TPG, and Blackstone Group (BX, -0.16%).

American Airlines Grounds Travelers. American Airlines (AMR, -11.4%) canceled more than 1,000 flights Wednesday, as re-inspections of its MD-80 aircraft continued to hamper the airline. American said it has to re-inspect all 300 of its MD-80s after the FAA questioned if past inspections were done properly. The cancellations and delays are expected to continue into Thursday and beyond.

Quick Tics: Boeing (BA, +4.8%) further delayed delivery dates for its new 787 Dreamliner, but said no orders were canceled and left its 2008 guidance unchanged….Crude, corn and gasoline all hit all-time highs today…Goldman's (GS, -2.7%) less liquid, Level 3 assets increased by 39% last quarter.

Tomorrow

Notable Earnings (Full List Here):
Genentech, Inc.(DNA) After Close
Rite Aid Corporation (RAD) Time Not Supplied

Economic Events:
7:00 AM:BOE Announcement
7:45 AM: ECB Announcement
8:30 AM: Initial Claims
8:30 AM: Trade Balance
2:00 PM: Treasury Budget