It's not all days of wine and roses in recent news:
After huge loss at Wachovia, market questions recovery from year-old credit crisis
http://biz.yahoo.com/ap/080722/earns_banks.html
CHARLOTTE, N.C. (AP) -- Surprisingly large second-quarter losses at Wachovia Corp. and Washington Mutual Inc. have quickly revived concerns that the financial sector still has a long way to go before it recovers from the year-old credit crisis.
Investors who were growing optimistic after a string of upbeat bank results in recent days were jolted Tuesday when Wachovia, the nation's fourth-largest bank, racked up an $8.86 billion loss because of charges and reserves for bad mortgage loans. The Charlotte-based bank also cut its dividend for the second time this year and eliminated 10,750 positions.
Washington Mutual, the nation's largest savings and loan, delivered a further blow, swinging to a $3.33 billion loss as it boosted its loan loss reserve to more than $8 billion, betting it will have more soured mortgages.
Both companies warned of steep cost cuts -- Wachovia said it was eliminating 10,750, positions, including those held by 6,350 current workers. Seattle-based WaMu said it would be cutting up to $1 billion in expenses by the end of 2009.
After huge loss at Wachovia, market questions recovery from year-old credit crisis
http://biz.yahoo.com/ap/080722/earns_banks.html
CHARLOTTE, N.C. (AP) -- Surprisingly large second-quarter losses at Wachovia Corp. and Washington Mutual Inc. have quickly revived concerns that the financial sector still has a long way to go before it recovers from the year-old credit crisis.
Investors who were growing optimistic after a string of upbeat bank results in recent days were jolted Tuesday when Wachovia, the nation's fourth-largest bank, racked up an $8.86 billion loss because of charges and reserves for bad mortgage loans. The Charlotte-based bank also cut its dividend for the second time this year and eliminated 10,750 positions.
Washington Mutual, the nation's largest savings and loan, delivered a further blow, swinging to a $3.33 billion loss as it boosted its loan loss reserve to more than $8 billion, betting it will have more soured mortgages.
Both companies warned of steep cost cuts -- Wachovia said it was eliminating 10,750, positions, including those held by 6,350 current workers. Seattle-based WaMu said it would be cutting up to $1 billion in expenses by the end of 2009.
gotta love how the stock markets work
WB up 27% on the day they report the 2nd biggest quarterly loss for a bank in history (C had a 9 billion loss in one quarter in 2007)
:nohead:
dead cat bounce!!!!!!
well see if the bkx (banking index) bottomed out in the upper 40s (back to 67 for now) or not as things progress i have my doubts
the harder they bounce the harder they fall longer term generally how bear markets work....
regardless i kinda doubt a biggie will fail....chances low in my mind.....but good chance many more indymac types along the way
WB up 27% on the day they report the 2nd biggest quarterly loss for a bank in history (C had a 9 billion loss in one quarter in 2007)
:nohead:
dead cat bounce!!!!!!
well see if the bkx (banking index) bottomed out in the upper 40s (back to 67 for now) or not as things progress i have my doubts
the harder they bounce the harder they fall longer term generally how bear markets work....
regardless i kinda doubt a biggie will fail....chances low in my mind.....but good chance many more indymac types along the way
It certainly is strange isn't it? A company can report record losses but hey, if they beat Wall Street's estimates their stock goes up.
:lol:
I guess the reason for that is because of speculation. The speculators have already sold down the stock price so that when a better-than-anticipated report comes out there is some buy-back.
I was referring to how strange the market was in general, not that specific case that you mentioned.
Other sectors are contrary to the general Chicken Littles you see.
http://biz.yahoo.com/ap/080723/wall_street.html
While oil once again tugged at stocks as it has for months, investors also examined a raft of earnings reports that indicated not all corporate profits were suffering because of the slower economy. That left some investors more upbeat about the prospects for the overall economy. AT&T Inc., McDonald's Corp. and Pfizer Inc., all among the 30 stocks that make up the Dow Jones industrial average, weighed in with reports that generally pleased investors.
"Oil is a positive but I think bigger than that is the earnings news is not as catastrophic as people were thinking," said Noman Ali, portfolio manager of U.S. equities for MFC Global Investment Management in Toronto. "Some of the bellwethers are reporting earnings that are better-than-expected. And outside of the financials things, aren't so bad."
banks acting like homebuilders
homebuilders have had many extremely viscous rallies in the face of bad news only to fall to lower levels eventually
i was expecting this bear shake to begin with just kinda amazed at how hard some of the beat down garbage is rallying
homebuilders have had many extremely viscous rallies in the face of bad news only to fall to lower levels eventually
i was expecting this bear shake to begin with just kinda amazed at how hard some of the beat down garbage is rallying
