Financial stocks led Wall Street and exchange traded funds (ETFs) 2% lower on inauguration Tuesday, as major indexes went lower during anticipation of the new leadership.
Stephen Bernard and Tim Paradis for the Associated Press report that investors are uneasy as The Royal Bank of Scotland forecast that losses for 2008 may top $41.3 billion, as Britain struggles by injecting more money into financial systems. The injections are an attempt to keep banks from falling under, just as the U.S. has doen for Citigroup and Bank of America.
Meanwhile, there is a continued focus on earnings reports. The big names today:
- Johnson & Johnson (JNJ), which reported that fourth-quarter profit rose 14%, topping forecasts.
- CSX (CSX) will report after the market close.
- Josh Funk for the Associated Press reports that TD Ameritrade Holding Corp. (AMTD) reported a fiscal first-quarter profit drop at 23%, cutting their total years outlook and reducing costs up to $60 million.
iShares Dow Jones US Broker Dealers (IAI): down 22.3% for past three months; AMTD 4.3% of holdings
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