More than economic stats lead to rough market day
Today new economic statistics were viewed negatively and the equity markets fell broadly. Behind the top line stats reported there were some positive signs in the numbers but they were obviously ignored and a profit taking sell-off ensued. It is likely that some non-statistical news items contributed to the market's anxiety today, among them:
---Bank of America, the nation's second largest bank and largest retail bank, announced that CEO Ken Lewis is resigning as of year end and no succession plan is in place. Some investors applaud the move but once announced a CEO's power is virtually nil. Who's in charge.
---CIT is on the brink of bankruptcy again. As the nation's largest factoring company to small businesses this raises the issue of a new dimension to the credit crunch and it is unlikely that other institutions will rush in to fill the breach.
---The Saturn deal with Penske fell apart, leaving 350 small businesses across the country(the dealerships) with a one year life and the likelihood of business dropping off a cliff almost immediately.
---JPMorgan Chase, the nation's third largest bank and a bulwark of safety during the darkest days of the financial crisis, announced a management change that has many that are in the know scratching their heads.
These are not immaterial reasons for investors to pause before buying the dip, so when prices fell today the support was not there.
---Bank of America, the nation's second largest bank and largest retail bank, announced that CEO Ken Lewis is resigning as of year end and no succession plan is in place. Some investors applaud the move but once announced a CEO's power is virtually nil. Who's in charge.
---CIT is on the brink of bankruptcy again. As the nation's largest factoring company to small businesses this raises the issue of a new dimension to the credit crunch and it is unlikely that other institutions will rush in to fill the breach.
---The Saturn deal with Penske fell apart, leaving 350 small businesses across the country(the dealerships) with a one year life and the likelihood of business dropping off a cliff almost immediately.
---JPMorgan Chase, the nation's third largest bank and a bulwark of safety during the darkest days of the financial crisis, announced a management change that has many that are in the know scratching their heads.
These are not immaterial reasons for investors to pause before buying the dip, so when prices fell today the support was not there.
posted by John Borden at 9:47 PM
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