Midday Market Update: Stocks, ETFs See-Saw After Budget Plans
February 26th 2009 at 10:26am by Tom Lydon
Governments are reaching in to help banks and this is giving Wall Street a chance to put some worries to rest over the financial system while giving exchange traded funds (ETFs) a chance to rally.
Stocks get a lift Thursday, as part of their up and down momentum for the week, as investors speculate over the health of U.S. banks, reports the Associated Press. Both the U.S. and British governments are ready to do more for banks to cut costs and smooth out rough areas.
Meanwhile, Obama has put a $4 trillion price tag on the new budget saying that is what it will cost to run the U.S. next year. That will be a whopping $1.75 trillion more than the President expects the government to raise in revenue, creating the largest federal deficit in real dollars since the country was fighting World War II, reports Kenneth Bazzinet and Michael Mcauliff for Daily News.
Listing a series of wasteful programs that have already been found, Obama said his administration was already piling up savings in the future.
- SPDR KBW Bank (KBE) up 10% in one day; down 42.6% over three months.
New home sales are at a record low annual pace in as of January. The Commerce Department reported Thursday that sales fell 10.2% to a seasonally adjusted annual rate of 309,000, the worst showing on records going back to 1963, reports Jeannine Aversa for Associated Press. It appears that lower mortgage rates can not help trigger a buying spree for potential buyers, as the state of the economy weighs over heavier.
- iShares FTSE NAREIT Real Estate 50 (FTY) down 15.8% over three months; up 1.4% over one week.
Americans claiming unemployment benefits is over 5.1 million, more proof that the recession is hitting employers hard. The Labor Department said Thursday that first-time requests for unemployment benefits jumped to 667,000 from the previous week’s figure of 631,000, reports Christopher S. Rugaber for Associated Press.
Dell (DELL) is reporting earnings today after market close, and the one-time largest exporter in Ireland is going to shave 2,000 jobs from its force, as they make a move to Poland. Evidently workers will take cheaper wages in Poland, reports Frank Barry for Marketplace. A cut of 2,000 jobs in Ireland is a substantial number for the country, and jobless workers will either pull unemployment benefits or emigrate to find a new job. Australia seems to be the destination of choice as of now, as the recession has hit Britain hard.
Earnings reports are due out later today, after market close.
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