Big Movers to Watch Today

It is tempting to think what this bailout mess would look like if we were not weeks away from an historic election. I cannot help but think the 110-page proposed bill would look less like a political stunt and more like a well-orchestrated, balanced package.

After reading the legislation, I came to the end of it expecting a message like, “This is Senators John McCain and Barrack Obama, and we approve this legislation.”

This is politics at their worst.

Unfortunately, the attitudes of the folks we pay to represent us are affecting us all. Financial markets across the globe are reacting negatively to the news that no bill was signed in Washington over the weekend.

European markets opened down by more than 200 percent. Hong Kong’s Hang Seng was down over four percent with the rest of the hemisphere shadowing it.

Here in the States, it will be another whipsaw day. Futures point to an opening loss of nearly 200 points, with all sorts of companies making big headlines.

Movers and shakers

First, keep an eye on Wachovia (NYSE:WB) as the bidding war between two suitors, Citi (NYSE:C) and Wells Fargo (NYSE:WFC), continues to gain strength. It looks like Wells Fargo will be the winner, but any word of a change in plans will drastically impact Wachovia today. Options investors should be ready to make some fast moves.

Another sector worth watching today is the shipping industry. On Friday, we saw a slew of companies like Dry Ships (NASDAQ:DRYS) and Excel Maritime (NYSE:EXM) make major valuation drops as the ripples from the credit mess spread across the pond.

Thanks to a global slowdown, shipping rates are down as much as 40% for some carriers. Demand has been slowing for months and now ships cannot leave the dock due to credit issues. Expect continued rough seas for the shipping industry.

Finally, keep an eye on the value of the dollar this week. So far, we have managed to skate through this mess relatively unscathed. But now that the deal is on the table and Congress is dragging its feet, the bottom may fall out. If it is going to happen, it will happen this week.

We are into the third week of this crisis. So far, nothing has gotten done and the markets remain relatively unchanged. Unless Congress gets in gear, Wall Street is not going to keep supporting the market. Expect plenty of red over the next few days.

It is times like this when I wish somebody would simply appoint our next president so we do not have to deal with the political pandering. But the way this country is going, that notion may come back to haunt us all.

Disclosure: None

Comments

[Ishortyou:]

lol..this is the best deal for Wachovia, now has NO DEBT which was adquired by Citi, has clean books in AG Edwards and Evergreen, and plenty of cash coming to his coffers from the sells, good move and the best thing it survived!!!!!!

2008 Sep 29 09:11 AM

[Ishortyou:]

Now thats what I called a talented CEO that protected shareholders.

2008 Sep 29 09:12 AM