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LOSSES EVERYWHERE
By cpa | January 20, 2009
The first African-American to become U.S. president will take his oath against a backdrop of a deep downturn, a trillion dollar federal deficit and fears of more crippling bank losses.
Nothing is changing in terms of the 2009 recession
the Obama presidency could not shake Wall Street from its dejection over the banking industry’s growing problems. After hearing the new president’s inaugural address Tuesday, investors went back to unloading stocks, sending the major indexes down more than 4 percent and the Dow Jones industrials down more than 300 points.
Stocks have pulled off their session lows, but continue to trade amid broad-based weakness. With stocks down, select commodities are showing relative strength.
Traders on the floor of the New York Stock Exchange paused at times to watch the inauguration ceremony and Obama’s remarks, but the transition of power didn’t erase investors’ intensifying concerns about the struggling economy.
U.S. bank shares sank on Tuesday, with Citigroup Inc and Bank of America Corp hitting their lowest levels since the early 1990s, as a series of analysts cut their forecasts for both banks for the rest of 2009.
NYSE LAST CHANGE
BAC 5.13 28.55%
C 2.83 19.14%
UYG 2.77 27.86%
WFC 14.18 24.09%
JPM 18.19 20.77%
Topics: STOCK |