Wednesday's Financial Winners & Losers
The ongoing credit crisis continued to crop up in various incarnations and make for a rollercoaster-like day, with the financial sector getting pulled from a morning jump to an afternoon slump that seemed to be easing just before a finish in the red.
The NYSE Financial Sector Index closed off 0.3% to 8,181.6, and the KBW Bank Index ended down 0.1% to 88.79.
One of the day's more positive developments was the progression of another Federal Reserve effort to inject liquidity into the market -- the first of four planned auctions allowing banks to borrow below the discount rate for 28 days. Out of 93 U.S. banks bidding $61.6 billion, the Fed today accepted $20 billion worth.
But putting a damper on things was new data from mortgage-research company RealtyTrac, which said that November foreclosures surged 68% from a year ago. This comes a day after the Fed proposed a plan to protect consumers from "unfair or deceptive" marketing practices that may have led to many of those foreclosures.On thin ice at Standard & Poor's, meanwhile, were bond insurers Ambac (ABK), MBIA (MBI) and Security Capital Assurance (SCA). S&P gave them all a negative outlook, which means they're in danger of losing their AAA ratings. That might have far-reaching implications, since it could put into question the ratings of all the securities each has insured.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV