The major indices began the session with solid gains, helped by ongoing efforts to bolster the financial system, but choppy trading and more negative headlines eventually took their toll on stocks, sending them into the red.
Health care stocks lagged for the entire session. The sector closed with a 5.1% loss. Particular weakness was seen in managed care companies, which dropped amid concern that health care reform will reduce Medicare spending.
| ..Nasdaq 100 -2.9%. ..S&P Midcap 400 -1.8%. ..Russell 2000 -2.1%. ..NYSE Adv/Dec 1412/1674. ..NASDAQ Adv/Dec 956/1675. Strong: healthcare facilities; divsfd banks; life and health insurance; regional banks; construction and engineering; divsfd financial services; independ. power producers; oil and gas drilling; divsfd metals and mining; semiconductor equip Weak: managed healthcare; industrial REITs; food retail; broadcasting; divsfd support svcs; divsfd REITs; office REITs; biotech; residential REITs; trucking |
Monday's session began on a promising note as stocks opened with solid gains following word the government may help Citigroup increase its tangible equity, while several government agencies pledged their support for the banking system as Treasury prepares to begin a series of stress tests for banks. The upward move was short-lived, though, as participants refocused on the lack of concrete solutions for the broader banking system.
There were neither market moving earnings announcements nor economic data this session. Tomorrow is also light on earnings and economic data, but Fed Chairman Bernanke will provide his semiannual monetary policy report to the Senate Banking Committee. He follows with a semiannual monetary policy report to the House Financial Services Committee Wednesday.
..Nasdaq 100 -3.7%. ..S&P Midcap 400 -4.0%. ..Russell 2000 -4.0%. ..NYSE Adv/Dec 417/2694. ..NASDAQ Adv/Dec 547/2158.
Strong: auto mfg.; divsfd banks; homebuilding; regional banks
Weak: tires and rubber; steel; managed healthcare; retail REITs; divsfd REITs; coal and consumable fuels; industrial REITs; residential REITs; divsfd metals and mining; office REITs
NYSE Market: February 19, 2009: briefing.com
stock market was down around 3 % as fear as the banking system was coming down even more.
Bank of America (BAC 3.79, -0.14) and Citigroup (C 1.95, -0.56) is the biggest pressure selling among financial industries, may taken over by the government and one of the senator is saying that Nationalization of bank might happen.
Financial sector is still the biggest concern in the market and it will be happening for the coming weeks.
| .Nasdaq 100 +0.4%. ..S&P Midcap 400 -0.8%. ..Russell 2000 -1.4%. ..NYSE Adv/Dec 766/2341. ..NASDAQ Adv/Dec 788/1924. |
Strong: divsfd REITs; residential REITs; specialized REITs; gold; office REITs; retail REITs; education services; casinos and gaming; semiconductor equip; industrial REITs
Weak: independ. power producers; divsfd banks; oil and gas refining; healthcare facilities; divsfd financial services; office electronics; auto mfg.; multi-line insurance; industrial conglomerates; oil and gas storage and transport
