Dow -24.34 (-0.19%)
Nasdaq +5.07 (+0.21%)
S&P 500 -2.16 (-0.16%)
News That Moved the Market
Markets Finish Flat After Banc of America's Miss. Stocks fell early Monday, after Banc of America (BAC, -2.5%) reported a disappointing quarterly report. B of A missed analysts' EPS estimates by nearly $0.20/share and said it expects the housing market to remain weak for all of 2008. "It would be too early to strike up the band and sing 'Happy Days Are Here Again,'" CEO Kenneth Lewis said on the conference call. The company set aside another $6 billion for bad loans as well. National City (NCC, -28.0%) also missed estimates and announced plans to raise $7 billion by selling a major stake for a 40% discount. The move, which was extremely dilutive for current stockholders, was desperate and a reminder that problems caused by the credit crisis are still unfolding. The markets were not able to shake the negative sentiment from the lousy news in the financial sector, but rallied at the end of the day to finish close to even.
Another Broken Record. Oil's run continued Monday, settling $0.79 higher to $117.48/ barrel. In addition to further weakening of the dollar, crude also got a boost after news broke that two Nigerian pipelines were damaged by rebels. "We are clearly headed over $120 a barrel and we are targeting $125," said John Kilduff, vice president of risk management at MF Global. "The last thing we need is another supply disruption. The outage certainly adds to the bullish sentiment."
Quick Tics: Hedge funds drew $16.5 billion of new cash last quarter, the lowest amount since 2005…Texas Instruments (TXN, +3.3% day; -1.9% A.H.) reported a 28% increase in profits, but its forecast disappointed investors…Oppenheimer & Co analyst Meredith Whitney cut Citigroup's (C, -0.3%) 2008 forecast.
Notable Earnings (Full List Here):
AT&T (NYSE:T) Before Market Open
Broadcom (BRCM) After Close
Chicago Mercantile Exchange (NASDAQ:CME) Before Open
Coach, Inc. (NYSE:COH) Before Open
DuPont (NYSE:DD) Before Open
McDonald's Corporation (NYSE:MCD) Before Open
Yahoo, Inc. (NASDAQ:YHOO) After Close
Yum! Brands (NYSE:YUM) After Close
10:00 AM: Existing Home Sales