Updated from 8:25 a.m. EDT
Stocks in New York opened lower Monday, as traders assessed the Treasury Department's massive weekend bailout plan for financial firms.
Dow Jones Industrial Average
shed 54 points to 11,335, and the
slipped 9.7 points to 1245. The
gave back 17 points to 2257.
On Friday, the three major indices finished substantially higher. Financials led the rally after the
Securities and Exchange Commission
temporarily banned short-selling of 799 stocks in the sector. The Treasury announced that over the weekend it would iron out a plan to provide hundreds of billions of dollars to U.S. banks and brokerages to try to avert further damage from the credit crisis.
New York Stock Exchange
on Monday extended the short-selling ban to 30 more companies that have significant financial operations. The list includes
Over the weekend, the
drafted a plan to lift as much as $700 billion in mortgage debt from financial-sector balance sheets.
On Sunday, the
would become bank holding companies instead of investment banks. The change subjects the pair to increased government oversight and stricter capital requirements.
had been the final two large, independent brokerages after
went bankrupt and
merged with large banks.
subsequently reported that Morgan Stanley would probably not be merging with
Separately, Japanese bank
announced early Monday it would buy a 10% to 20% stake in Morgan Stanley. Such an investment could be worth as much as $8.4 billion.
Outside the financial sector, software maker
announced a $40 billion
program and said it would raise its quarterly dividend to 13 cents from 11 cents.
Shifting to commodities, crude oil was gaining $1.92 to $106.47 a barrel. Gold was adding $20.80 to $885.50 an ounce.
Longer-dated U.S. Treasury securities were falling in price. The 10-year was down 14/32 to yield 3.86%, and the 30-year was down 27/32, yielding 4.43%. The dollar was declining vs. its major foreign competitors.
Abroad, many foreign markets were marching higher. The FTSE in London and the DAX in Frankfurt were both climbing, and the Nikkei in Japan and the Hang Seng in Hong Kong finished on the upside.