Others   

DOW

yes i agree, probably bottomed out already, still need to check out the 4pm european markets

 

Surprisingly, STI is not very bloody today

 

Today Asia markets and tonight US market will be very bloody too.

DJ aftermarket already down by more than 200points.

US Futures & Markets Indicators

Dec 2007	Change	Level	Last Update?
S&P 500	-0.50	1408.80	11/26 7:00pm
Fair Value		NA	11/15 4:14am
Difference*		N/A
NASDAQ	-4.00	1996.00	11/26 6:53pm
Fair Value		NA	11/15 4:14am
Difference*		N/A
Dow Jones	-214.00	12772.00	11/26 7:59am

 

Citigroup shares below $30

Citigroup Inc (C.N: Quote, Profile, Research) shares fell below $30 for the first time in more than five years on Monday, amid mounting concern about mortgage losses and possible further job cuts at the largest U.S. bank by assets.

The shares fell for the sixth time in seven sessions, closing down $1.90, or 6 percent, at $29.80 on the New York Stock Exchange.

Monday's drop coincided with a broad decline in shares of financial services companies and contributed to a 237-point decline in the Dow Jones industrial average (.DJI: Quote, Profile, Research).

Citigroup's shares have fallen 46 percent this year, wiping out roughly $129 billion of market value.

"Today, Citigroup's stock level is 100 percent based on fear," said Ganesh Rathnam, an equity analyst at Morningstar Inc in Chicago who has a "buy" rating on the bank. "The market is saying Citigroup needs a big capital infusion that would dilute current shareholders."

The 24-member Philadelphia KBW Bank Index (.BKX: Quote, Profile, Research), which includes Citigroup, fell 4.5 percent on Monday. It is down 25 percent this year.

Citigroup is considering "massive" layoffs that may result in a loss of 17,000 to 45,000 jobs, although no precise number has been set, CNBC television said on Monday.

The bank in April announced 17,000 job cuts, equal to about 5 percent of its work force, as part of a restructuring plan to save $4.58 billion a year by 2009.

"Our business heads are planning ways in which we can be more efficient and cost-effective to position our businesses in line with economic realities," Spokesman Mike Hanretta said.

He added that "any reports on specific numbers (of job cuts) are not factual."

Rathnam estimated that further job cuts could result in $2 billion to $3 billion of annual savings, provided they do not erode revenue.

Citigroup has also said it expects an $8 billion to $11 billion fourth-quarter write-down for losses tied to mortgages, possibly resulting in a quarterly loss.

Some analysts have said larger write-downs may be needed and that Citigroup may cut its dividend, a prospect the bank has rejected. Others have called for the bank to be broken up. Rathnam estimates Citigroup's pieces are worth $56 per share.

Citigroup also has exposure to tens of billions of dollars of structured investment vehicles, or SIVs, whose holdings have become difficult to value as investors shy away from mortgage- related debt they consider too risky.

The bank is working with Bank of America Corp (BAC.N: Quote, Profile, Research) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) to create a "super-SIV" to support ailing SIVs.

Citigroup faces these challenges as it hunts for a chief executive to replace Charles Prince, who resigned on November 4.

Former U.S. Treasury Secretary Robert Rubin, a top Citigroup executive since 1999, replaced Prince as chairman. Sir Win Bischoff, who led the bank's European operations, was named interim chief executive.

Citigroup shares last traded below $30 on October 14, 2002, roughly coinciding with the bottom of a three-year bear market in U.S. stocks.

 

Don't look now: Here comes the recession

Even with a boost from holiday spending, the U.S. economy looks shaky, thanks to slumping housing prices, Wall Street woes and debt-laden consumers. How bad could it get?

 

http://money.cnn.com/2007/11/23/magazines/fortune/barr_recession.fortune/index.htm?postversion=2007112615 

 

128xx was august level...with intraday low of 124xx...

now 127xx is a support level...around the peak just before feb-march correction...

 

hope this support dun give way...

if rebound tmr...good...if not...!#%#$@%



 

 

if dow dun close abv 12850 region with good buffer, can consider high chance of further dip is coming .

 

Home builder shares fall after Citigroup cut

Home builder shares fell on Monday, led by a more than 4 percent drop in Centex Corp (CTX.N: Quote, Profile, Research) after Citigroup cut its near-term sector outlook and ratings on eight companies, and said an overhang of unsold homes and subprime loan resets had made forecasting difficult.

Citigroup cut Centex, DR Horton Inc (DHI.N: Quote, Profile, Research), KB Home (KBH.N: Quote, Profile, Research), Lennar Corp (LEN.N: Quote, Profile, Research), Pulte Homes Inc (PHM.N: Quote, Profile, Research), Ryland Group Inc (RYL.N: Quote, Profile, Research) and Standard Pacific Corp (SPF.N: Quote, Profile, Research) to "hold" from "buy." It cut Meritage Homes Corp (MTH.N: Quote, Profile, Research) to "sell" from "hold."

In a research note to clients dated November 23, Citigroup also cut the price target and estimates on Beazer Homes USA Inc (BZH.N: Quote, Profile, Research), and price targets on Hovnanian Enterprises Inc (HOV.N: Quote, Profile, Research), MDC Holdings Inc (MDC.N: Quote, Profile, Research) and Toll Brothers Inc (TOL.N: Quote, Profile, Research).

Citigroup said it did not expect sufficient data to allow for optimism on the sector until the second quarter of 2008.

"We are no longer convinced that gauging the degree of bad news is a reliable tactic for forecasting near-term performance," the note said. "This time, we expect there will need to be a modicum of good news before a sustainable rebound in the stocks can take shape."

New home prices and inventory seem to be more than half-way through a needed correction, but resale prices have only barely begun to erode and subprime resets are still ahead, it said.

Among the home builders Citigroup cut: Centex shares were off 93 cents, or 4.66 percent, at $19.03; KB Home fell 98 cents, or 4.52 percent, to $20.71; Ryland was down 97 cents, or 4.45 percent, at $20.81; Standard Pacific slipped 11 cents, or 4.14 percent, to $2.55; DR Horton was off 43 cents, or 3.78 percent, at $10.95; Lennar off 58 cents, or 3.72 percent, at $15.01; Meritage shares off 46 cents, or 3.22 percent, at $13.82; and Pulte shares were 29 cents lower, or 3.01 percent, at $9.34.

 

We will have to be thankful if it maintains tonight. Passing 200? Unlikely.

 

Manikamaniko, if DOW closes up 200pts tonight, we can unload our stocks tomorrow in a higher price. That makes a big difference.

 

Too bad, DOW is negative now. Hope it will close positive today.

 

Dow is -50 pts...

Even if the Dow closes up 200pts tonight, it makes no difference... the downtrend is already established and underway... 

 

We should be very happy if they can maintain throughout.

 

It looks quite flat so far on the American indices. Not much movement yet.

 

Market edges up on holiday cheer

Stocks rose modestly on Monday after a strong kickoff to the holiday shopping season, but the gains were held in check by the latest trouble in the financial sector stemming from subprime lending.

Shares of Amazon.com (AMZN.O: Quote, Profile, Research) were among the top gainers on Nasdaq. The Monday following Thanksgiving is known as "Cyber Monday" when many employees returning to work go on-line to buy gifts.

On the downside, banks fell after Goldman Sachs said HSBC (0005.HK: Quote, Profile, Research), Europe's biggest bank, would likely need a further $12 billion in provisions for its U.S. subprime mortgage and home equity loans.

HSBC on Monday provided up to $35 billion to support its two structured investment vehicles. SIVs have been battered by the recent subprime-related credit turmoil.

"The market looks a little tentative. Continued focus on credit issues, HSBC putting money in those SIVs, that's not helping," said Todd Clark, managing director of stock trading at Nollenberger Capital Partners in San Francisco.

"The one thing that might mitigate that is that the holiday season got of to a strong start. There were fears that that wasn't the case," Clark said.

The Dow Jones industrial average (.DJI: Quote, Profile, Research) was up 22.84 points, or 0.18 percent, at 13,003.72. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was up 0.46 point, or 0.03 percent, at 1,441.16. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was up 10.47 points, or 0.40 percent, at 2,607.07.

Shares of Amazon.com rose 1.7 percent to $82.80. Shares of Garmin (GRMN.O: Quote, Profile, Research), a maker of navigational devices seen as hot items on holiday wish lists, were up 5.5 percent to $96.94.

Retail sales nationwide rose 8.3 percent on the Friday following Thanksgiving compared with the same day a year ago, according to the National Retail Sales Estimate from ShopperTrak.

Financial services companies' stocks were rattled after the news about HSBC. Some of the heaviest decliners were shares of Citigroup (C.N: Quote, Profile, Research), down 1.4 percent to $31.28 and Morgan Stanley (MS.N: Quote, Profile, Research), down 1.1 percent to $49.35.

Volatile price action in the oil trading pits was also casting a shadow over the holiday cheer. Crude rose as high as $99.11 per barrel on Monday. It was last down 48 cents to

$97.70.

The Dow Jones home builder index (.DJUSHB: Quote, Profile, Research) was down 2.2 percent after Citigroup (C.N: Quote, Profile, Research) analysts cut shares of seven companies in the sector. Year-to-date, the industry is down about 60 percent.

 

Coming!!!

Stocks creep higher

Wall Street starts the post-Thanksgiving session in positive territory, thanks to early retail sales reports.

Stocks crept higher Monday morning, as investors welcomed an upbeat start to the holiday retail sales season, but gains were limited by ongoing worries about the health of the financial and housing markets.

The Dow Jones industrial average (Charts) added 0.3 percent in the early going. The S&P 500 (Charts) index was barely changed and the Nasdaq composite (Charts) gained 0.4 percent.

All financial markets were closed Thursday for Thanksgiving, and closed early on Friday, with many Wall Streeters making a four-day weekend of it. Monday morning was slow to start as participants continued to drift back after the holiday.

The early reports from the nation's retailers were positive, with reports from Black Friday and the weekend showing a strong turnout, although no big splurgers. (Full story)

But news reports that Citigroup (Charts, Fortune 500) could announce massive layoffs amid the credit market crisis weighed on that stock.

In addition, Citigroup lowered its near-term outlook on the homebuilders, saying it is hard to see when the bottom will be made for the hard-hit industry. Centex (Charts, Fortune 500), Lennar (Charts, Fortune 500) and KB Home (Charts, Fortune 500) were among the names cited in the report and all fell in early trading.

Treasury prices were little changed with the yield on the benchmark 10-year note at 4 percent. Treasury prices and yields move in opposite directions.

U.S. light crude oil for January delivery fell 33 cents to $97.85 a barrel on the New York Mercantile Exchange.

 

Not encouraging at all.

No early x'mas.

 

Markets open flat

Consumers came through at the start of the holiday shopping season. But can the markets withstand more subprime hits?

U.S. stocks opened flat Monday on reports of a good start to the holiday shopping season, but continued worries about the mortgage market could temper any gains.

All three major indexes were closed to break-even at the start of trading.

The holiday shopping season kicked off with a bang in the United States on the day after Thanksgiving, known as Black Friday.

ShopperTrak RCT Corp., which tracks sales at more than 50,000 U.S. retail outlets, said that total Black Friday sales rose 8.3 percent. But the National Retail Foundation's survey said shopper traffic was up only 4.8 percent over the weekend, and that the average amount spent per consumer was down 3.5 percent.

Still, hopes for a strong holiday shopping season appeared to be giving stocks a boost in the early going. Stocks in Asia finished the session sharply higher, with indexes in Hong Kong and Seoul both up more than 4 percent. European markets were posting more modest advances in midday trade.

"Even if some of the numbers show each shopper spending a bit less, I think when it's all said and done, the consumer will probably prove out to be pretty good, and the market is reflecting on that," said Peter Cardillo, chief market economist at Avalon Partners. "

But oil prices still near $100 a barrel and the expectation of more bad news at mortgage financing firm Freddie Mac could easily upset U.S. markets. Oil prices gained 30 cents to $98.48 in early trading, although that was off of earlier highs.

Freddie Mac, which last week shook capital markets as it reported a $2 billion loss that left it near the minimum capital requirements required by its regulators, is expected to announce a share offering of as much as $5 billion early this week. The offering could further depress its own stock and raise new concerns about fallout from the credit market problems.

The Wall Street Journal reported Monday that Countrywide Financial (Charts, Fortune 500), the nation's largest mortgage lender, has turned to the Federal Home Loan Bank in Atlanta as its major source of funding since mid-August. The paper reports that Countrywide's borrowings at the quasi-governmental entity stood at $51.1 billion as of Sept. 30, up 77 percent from three months earlier.

E-Trade Financial (Charts), the online broker that saw its shares spike 25 percent in Friday trading on takeover speculation, could see negotiations on a possible purchase hung up on concerns by potential buyers about the value of its portfolio of mortgage securities, according to a report in the Journal.

"The credit woes are going to be around for a long time," Cardillo said. "But I think when it is all said and done, investors are going to focus on the economic numbers and the fact that the economy is not slipping into a full-blown recession." 

 

Dear Pinnacle,

Thanks for your info. I got it from bloomberg's website. Maybe the timing is different. Now that I know CNN does have such future data. Thanks and hope DOW will go up and closed more than 100 pts today.

 

LONDON, Nov 26 - European shares pared gains sharply in afternoon trade on Monday as bank stocks ran out of steam after an early rally and Britain's FTSE 100 underperformed its peers in Germany and France. At 1311 GMT, the pan-European FTSEurofirst 300 <.FTEU3> index was up 0.3 percent at 1,480.43 points, well off its day highs of 1,491.99, when it was more than 1 percent higher, and closer to its low for the day of 1,477.25. Drugmakers, banks and mobile telecoms were the heaviest drags on the benchmark. French bank Natixis was the biggest percentage loser, down 4.6 percent, after it put the cost of the financial crisis triggered by turmoil in U.S. mortgages at 407 million euros for its quarterly results. "Historically year-end is when people buy, but I've been telling colleagues to sell into any strength as banks haven't disclosed the full extent of the subprime damage," said a trader in London. "It's difficult to see stocks higher than where they are right now before the year-end, and we are likely to see European markets tail off today once the United States opens," he said. Britain's FTSE 100 was down 0.2 percent, while Germany's DAX <.GDAXI> was flat and France's CAC 40 <.FCHI> down 0.1 percent