Wall St. Falters Amid Investor Uncertainty

Stocks Follow Up Dismal Week With More Losses As Pessimism Grows

(AP)  With little good economic news or direction from Washington, the pessimism on Wall Street intensified Monday, sending stocks lower.

The market seesawed early in the session as investors were torn between hopes for the financial industry and fears about the broader economy's slide. But stocks turned moderately lower in the afternoon, following a now familiar pattern where short-lived bursts of optimism give way to concerns about the country's economic woes.

With little in the way of corporate and economic news, investors floundered.

"There is really not very much for the market to sink its teeth into," said Steve Sachs, director of trading at Rockville, Md.-based Rydex Investments.

Financial stocks, however, were the one exception, maintaining their early gains as other industries faltered. Banks rallied on a news report that Bank of America could raise capital in the private sector. Shares of major banks have been pummeled to multiyear lows amid growing concern that they don't have enough cash to cover future losses despite multiple government rescues.

"Any bank right now that can raise money in the private sector, that is a major positive for the market," said Quincy Krosby, chief investment strategist at The Hartford. "It's another way to raise capital rather than the government infusing capital into the banks."

Among the day's downbeat news, newspaper publisher McClatchy Co. said it plans to eliminate 1,600 jobs, or 15 percent of its work force, as it battles declining advertising revenue.

Investors were also mindful of remarks from billionaire investor Warren Buffett, who said during an appearance on CNBC that the economy has "fallen off a cliff" over the past six months. He noted that consumers have changed their habits in remarkable ways.

According to preliminary calculations, the Dow Jones industrial average fell 79.89, or 1.21 percent, to 6,547.05.

The Standard & Poor's 500 index fell 6.85, or 1.0 percent, to 676.53, while the Nasdaq composite index fell 25.21, or 1.95 percent, to 1,268.64.

The Russell 2000 index of smaller companies fell 7.62, or 2.2 percent, to 343.43.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 1.07 billion shares.

Both the Dow and the S&P 500 have fallen more than 24 percent this year. The Dow is at its lowest level since the spring of 1997, and the S&P 500 is at its lowest point since September 1996.

The Nasdaq, meanwhile, is at a six-year low.

"This market is rudderless," said Jon Biele, head of capital markets at Cowen & Co. "There's a complete lack of direction. I think (investors) are just trading positions."

"Any type of news we get, the market is just skeptical," he said. "There is nothing in the near term that is going to ratchet us to a different higher level."

Earlier Monday, drugmakers Merck and Schering-Plough announced a $41 billion deal. Merck & Co. has offered Schering-Plough shareholders $10.50 in cash and just over half of one Merck share for each of their shares. The price represents a 34 percent premium to Schering-Plough's closing stock price on Friday. While a combination between the two companies had long been speculated, news of the merger was nonetheless a good sign that big deals can still get done in this environment.

Merck dropped $2.13, or 9.4 percent, to $20.61, while Schering-Plough rose $2.35, or 13.3 percent, to $19.98.

The Wall Street Journal reported that Genentech's board is close to striking a deal for a $95-per-share sale to Switzerland-based Roche, the company's cancer drug partner. Genentech rose $1.92, or 2.1 percent, to $92.78.

Bank of America shares soared 52 cents, or 16.6 percent, to $3.66. Wells Fargo & Co. jumped $1.44, or 16.7 percent, to $10.05.

In other financial news, Capital One Financial Corp. became the latest bank to slash its dividend, following JPMorgan Chase & Co., Wells Fargo & Co. and others. The lender said it will reduce its dividend by 87 percent to 5 cents to help preserve capital. Capital One rose 44 cents, or 5.3 percent, to $8.75, after earlier falling as low as $7.80.

General Electric Co. rose after a spokesman for the conglomerate confirmed that its GE Capital lending arm is selling debt under a federal liquidity program. The company, which often trades in line with financial stocks, rose 33 cents, or 4.7 percent, to $7.39.

Investors also awaited news about the nation's automakers. Members of the Obama administration's auto task force are scheduled to meet with General Motors Corp. and Chrysler LLC executives Monday in the Detroit area and tour their facilities.

The government could recall its $17.4 billion in loans to GM and Chrysler if they fail to sign deals for debt restructuring and other concessions from stakeholders by March 31. GM and Chrysler are seeking $21.6 billion in additional aid to execute turnaround plans submitted last month.

GM rose 20 cents, or 13.8 percent, to $1.65. Chrysler isn't publicly traded.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 2.87 percent from 2.89 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.20 percent from 0.18 percent late Friday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude for April delivery rose $1.55 to $47.07 a barrel on the New York Mercantile Exchange.

Overseas markets were mixed after the World Bank forecast that the global economy will shrink this year for the first time since World War II. Japan's Nikkei stock average fell 1.21 percent, while Hong Kong's Hang Seng index dropped 4.84 percent. Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 0.7 percent, and France's CAC-40 fell 0.0 percent.

[bobnjersey]

[All you Obama supporters last Nov and Dec stated that as soon as Barack Obama took office on Jan 20th, that the Stock Market would start heading toward 15,000? What happen, were you all WRONG? ]
[Posted by scb1111_1 at 3:34 PM : Mar 9, 2009 ]

this is a lie ... just like everything else you post. i read these threads nearly every day ... and i have never seen this referenced by anybody ... except a delusional fool like yourself trying to direct responsibility onto someone other than yourself or your authoritarian leaders.

[bobnjersey]

[We all were told that as soon as our Great Leader Barack Obama took Office on Jan 20th, the stock market would shoot up toward 15,000 points? ]
[Posted by scb1111_1 at 3:21 PM : Mar 9, 2009 ]

who told you that ... mrs concrete?

[bobnjersey]

[It always takes Liberals a little longer to figure it out. ]
[Posted by hawksprings at 3:10 PM : Mar 9, 2009 ]

and the conservatives always think they have it figured out ... and they always blame liberals.

[erichsh]

Wow. The word "Washington" was actually quoted in this article - once - in relation to the continuing downward plummet of the market. They couldn't quite cough up the word "Obama", but it's a start. Long overdue and, of course, grossly understated, but I guess the cause and effect is becoming too obvious for even the MSM Obama-lovers to ignore.

[hamiltongrad]

ALL WE NEED TO DO
1. Lower ALL taxes . 250,000 is not rich.

2. Reduce credit card debtand interest rates to 5 % range.

3. TORT REFORM - to get the legal tax off all of our backs, This will immediatedly lower health care COSTS for everyone. This will make doing business less costly. JUST LOSER PAY. and Ban bill by hours, ( no one lives this way anymore 500 $ an hour ! Are you people insane !) FLAT FEE for LEGAL Work. That would motivate efficient speed to decisions, and cut our waste. WE CAN NEVER GET THE ECONOMY BACK ON TRACT UNTIL WE HAVE MEANINGFUL TORT REFORM AND LIMIT THE OUTRAGEOUS LEGAL FEES THAT WE ALL MUST BURDEN !!!

4. BUILD 20 OR MORE NUCLEAR energy plants, to provide really cheap energy - and yes we can handle the waste, just as FRANCE and little CT. does ! for decades === stupid.

5. HYBRID CARS.

6. No tax on buying new cars for the next two years.

7. Education about finances mandatory for all high school. NEVER let anyone sign up for incredible stupid interest rates, home loans they can not afford.

8. Congressional hearing on role of B. Frank and C. Dodd in this housing mess, and why the gov't forced banks to make really STUPID loans to people who could not afford .

9. Stop being such tight AXXZZ about parties and trips to luxury destinations. What are we becoming a nation of hollier than thou neo liberals. Leave them alone. And all those lost trips, means that there are a lot of regular people , like cooks and waiters, drivers, divers, singers, dancers, hotel checkerinnersandouters - no job. Thanks a bunch. Let them earn a living too.

[formrusmcsgt]

With little good economic news or direction from Washington, the pessimism on Wall Street intensified Monday, sending stocks lower.
---
The market is still trying to figure out how much bad business it is going to have to choke down and how much can be passed off on the rest of us.

When no new handouts are announced, it goes down.

[tbuckl]

2008 Preamble to Declaration of Independence
We the rich hold these truths to be undeniable; that all rich people are created above all others & that from our superiority is created by corrupted God, that we derive our rights inherent & inalienable, above anyone else, we decide what the preservation of life, & liberty, & the pursuit of happiness is; that to secure our position to these ends, our token government is instituted by the rich, deriving their just powers because they have the armies and from the consent of the rich; that whenever any person shall become destructive of our rules, it is the right of the rich to destroy, alter or to abolish any rule, law that interfere with the rule of the rich, & to institute new definitions at will and without notice , laying ours foundation on the backs of the not rich. We shall organize our powers in such a form, as to keep all non-rich at bay and shall protect our safety & happiness by force should the poor rise up due to the heavy yoke around their necks.

[azure13]

Wall Street has been falling since this socialist moved into office on Jan 20th and his adiministration better care if it goes up or down because it's an indicator of how the economy is doing and his presidency as a whole.
Posted by wdh3007
-----
Oh give me a break. It's been failing for quite some time before that. And to let the stock market be the judging factor of a presidency, and the economy is a joke. That's like saying you're retirement plan is to win big in Vegas.

[whitemale08]

What would happen if the stock market went to ZER?

NOTHING!

The very next day there will be somebody to buy the stock at pennies on the dollar.

You Wall Street Republicans can't have it both ways.

You can't scream 'socialism' everytime President Obama opens his mouth but then complain on why he's not bailing out the stock market.

The only thing that President Obama can do for the Americans who lose everything in the stock market is create a social program and have the rich pay for it.

But wait, isn't that socialism?

No, it's reality.

[curse914]

Yeah, you democrap nut cases would LOVE for us to either make nice or go away, woulnt you. Well John, turnabout is fair play. Your god Obama will get respect if or when it is EARNED, and I havent see any brilliance from him yet !!! Get used to hearing "stock market down" all the time.
Posted by TexasEd at 5:54 PM : Mar 9, 2009


Add TexasEd to the list of neocons who think we should abolish voting except for those who reside on Wall Street. All praise the Wall Street Gurus who will choose our next president! America did not exist before Wall Street...hang on, "nothing" existed before Wall Street created our reality and world!

In the begining Hank Paulson did create paper chits and called them money and we did believe that this paper had value!

Then he did divide his children up by class, those who would have and those who would not, and those who would have, rejoiced!

[sockpuppet4]

Seriously. With how I feel about republican arrogance.......

....... I would like to see the stock market go to zero. No lie. I genuinely feel this way and it would make me very happy to see it. I would like nothing better than to see republicans grovel.

They all make me sick. They are scum of the earth. Amen.

[bajajohn1]

Bunch of Whiney Repubs on this blog. That's all they are good for; whining, and then blaming everyone else for their failures. Get to work and quit your b.i.tchin

[wdh3007]

Wall Street has been falling since this socialist moved into office on Jan 20th and his adiministration better care if it goes up or down because it's an indicator of how the economy is doing and his presidency as a whole.

[despido]

Lot's of smart guys on this forum. I don't claim to be one of 'em. But I ran away from home at age 10, went back to school at age 20 and retired at age 50, so I feel I've learned a few things.

There isn't a lot of cash sloshing around in the States right now, so I figure the Teasury is gonna go over seas to fund Obama's so called stimulus. They're strapped too, so it seems logical they'll want an attractive rate of return - certainly better than treasuries are paying now. They'll also be interested in higher rates to support the dollar, since we're into them for tillions and its all dollar denominated. 'Also occurs to me that an increase in rates will kill any benefit of the stimulus. The stimulus 'package' should have been limited to 100% stimulus. Adding all the pork increased dramatically the amount we have to finance. Kinda shot ourselves in the foot, I believe.

[speakinup]

whitemale08 - President Obama has done little but give lip service to "reaching out" to the Republicans.

If he wanted to reach out to them, he'd call in Pelosi and ask her to remove the gag order she has placed upon all Republicans from participating in the creation of bills or amendments to them when they come back from the Senate.

But he hasn't.

[whitemale08]

I read your post about what FDR did. It ignores a few facts:
1. FDR was on a gold standard with very little debt.
2. The world economy was still partitioned by country. What we did here was "containable"
3. FDR learned to work WITH industry. Obama prefers to show us he doesnt need them/

But I am leaving for dinner. Goodbye.
Posted by McHineguy at 4:15 PM : Mar 9, 2009 --

Well I'm glad you don't listen to Limbaugh/Hannity but you sounded like you did.
And I'm going to respond regardless if you have to eat dinner or not.

FDR didn't put us on the 'gold standard' he actually took it off so we wouldn't be bound by these British 'free trade' rules that 'you must adhere to an austerity budget regardless if your peoples starve to death". But I forgive you for that one because I made that mistake too of assuming we had a 'gold standard' under FDR.

What FDR did at the Bretton Woods was 'fix the exchange rates' so it took the speculation out of currencies. That way FDR could borrow as much as needed to fund welfare and the start-up money necessary to re-build the American economy.

Unfortunately we've been hi-jacked when the Liberty League, namely Wall Street crowd, clamored for FDR to return to a 'budget' based off gold.

Wall Street performed very poorly under FDR but the 'middle class' was rebuilt because of his priorities in his policies. Wall Street never forgave FDR for that and has ever since tried to discredit him for it.

Wall Street will not fare better with President Obama because he's doing the right thing but needs to go further and adopt all of FDR's policies, Unfortunately he's trying to reach out to Wall Street Republicans and it's making it harder politicly to do what needs to be done which is full FDR policies.

[despido]

A funny thing happened on the way to the Whitehouse. All of the reasons Obama gave to vote for him have now become excuses for his failure to perform. He wanted the job; lied and schemed to get it - but now its too hard. Poor Baby.

Eventually the economy will recover, but it would have recovered much sooner if Obama had spent his time on the kid's swing set instead of in the Oval Office. His cronies are now working feverishly creating excuses so that years from now he can still blame his predecessor. He, nor anyone else in government, will ever admit that all parties played a hand. It's easy to see where their priorities lie.

[quapawsix]

Free ride is over with boys

[McHineguy]

yea, but you took Limbaugh/Hannity's advice.
and you're still living under Bush's economy, President Obama just took office and is trying to fix it.
Posted by whitemale08 at 4:01 PM : Mar 9, 2009

Im tired of everything having to be about personalities. As I said several times today, I dont listen to Rush.

I have an excellent IQ (even higher than Obamas) and can form my own opinions.

Now to some observations without personalities.

the market is down because the world does not have confidence in Americas industry nor Obamas meddling in it. Bush is gone, the worlds investors are still leaving.

I read your post about what FDR did. It ignores a few facts:
1. FDR was on a gold standard with very little debt.
2. The world economy was still partitioned by country. What we did here was "containable"
3. FDR learned to work WITH industry. Obama prefers to show us he doesnt need them/

But I am leaving for dinner. Goodbye.

[speakinup]

"Speakinup, I went and looked it up and Nov.4th,2008 the Dow was at 9625.00. So the story you and CBS are trying to pawn off that the Dow has lost 32% under Obama is a fairy tail. In reality it has only lost 16% since he has been in office. You cannot count losses before he took office those are on Bush. - Posted by obiden08


So - I'm just quoting what I read, Obiden08. Fair enough though, I'll believe you. that is still an impressive drop, and more than the original percentage you were quoting.

Maybe you should go to the site and ask the author where he got his facts from - if you are correct - you could make a difference in the article. If he is wrong, he should be corrected. Sound good ?