Futures sharply lower this morning despite the Fed’s injection of some liquidity into the markets. While having minimal affect at this point, it remains a symbolic gesture that the Fed is alert and willing to step in when and as needed.
Yesterday’s weakness – and subsequent carry-over into today – stemmed from Countrywide Financial announcing that disruptions in the credit markets would more adversely affect earnings than originally thought and the ECB’s addition of liquidity to the markets, which served to indicate the problem in Europe may be larger than initially thought.
While bargain hunters are beginning to sniff around at these levels, it still feels like there’s more downside correction to come.
Oil around $70/barrel and the 10-year yields 4.74%.
Rockbay News: ATLS files to delay 10Q from Jun 30 to Aug 14, S&P raises DAI GY rating to BBB+, MELI IPO priced at 18, DJO downgraded at PIPR on pending takeout, AABA NA down on speculation of everything from Barclays withdrawing to financing concerns, TWP initiates CVS with OW, CITI upgrades UFS to hold from sell on 5-wk 28% drop, Spanish paper reports CVC ready to walk away from Altadis,
Vito’s Trivia: 1) Name two of the five oldest stock exchanges worldwide. 2) What were the first publicly traded securities in the US?
Yesterday’s Answer: 1) "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." --Warren Buffett 2) "If a little money does not go out, great money will not come in." --Confucius