Dow Watch: Bank of America, Citigroup Sink

Bank of America and Citigroup have the worst day, but all 30 stocks in the Dow close lower.
Publish date:

Updated from 3:42 p.m. EST

Glad That's Over

(At 6:08 p.m. EST)

Just a terrible day for the


. A loss of 381.99 points, or 4.6%, to 7888.88. That was the worst point decline and the biggest percentage pullback thus far in 2009. Every stock in the index fell, led by

Bank of America's

(BAC) - Get Report

19.3% drop to $5.56 and


(C) - Get Report

15.2% retreat to $3.35. Those two were also the most actively traded.

The other financials,

JPMorgan Chase

(JPM) - Get Report


American Express

(AXP) - Get Report

, gave back about 10% each.

Procter & Gamble

(PG) - Get Report

had the best showing, registering a 2.8% loss.

With the selloff, the Dow lost almost $130 billion in market capitalization. So far in February, it's down 1.4%, and for the year, it has given back 10.1%.

Here's the good news: As far as I know,

Tim Geithner

isn't discussing a new bailout tomorrow.

Bad Day for the Beltway

(At 3:32 p.m. EST)

Maybe Tim Geithner should have delayed unveiling his plan a little longer. By failing to offer the specifics traders wanted to see about the latest effort to save the banks, the Treasury secretary ended up being the central reason stocks on the


sold off sharply Tuesday, slumping some 400 points and falling below 7900.

We didn't get any help from

Ben Bernanke's

testimony before Congress about restoring the flow of credit, and the Senate's passage of a more than $800 billion

stimulus package

did nothing to bolster confidence.

The most aggravating set of triplets around the Beltway since Troy Aikman, Emmitt Smith and Michael Irvin were running rings around my Washington Redskins? Has to be in the conversation.

Prices for individual Dow stocks were brutal -- down 18% at

Bank of America

(BAC) - Get Report

, 16% at


(C) - Get Report

. An 8% loss at


(GE) - Get Report

, and 10% at


(AA) - Get Report

, that latter of which had its rating cut at S&P.


(GM) - Get Report

was the best performer, and it was losing 2.2%. Ugly.

Where Wall Street Stands

(At 1:27 p.m. EST)

Great stuff over on


about Tim Geithner's speech Tuesday. I wanted to pick out just a couple of things that I think can really help individual investors get a better idea of how Wall Street pros are viewing the latest plan from the Treasury.

From Jim Cramer:

Public/private. Are you kidding me? Do you think there is enough money, even with financing, to make a dent on


(C) - Get Report

structured investment vehicles, let alone the banking system? The market, he says, wanted to see this: "We will give the banks the capital that they need to make it through this, we will certify that they have the capital, and they will give us a note back, saying they will pay us back." True equity capital. If you have to come back more than once, we will break you up and sell you.

Tony Crescenzi offered this:

Treasury Secretary Timothy Geithner spoke in plain terms, catering more to Main Street than to Wall Street, clearly showing the concern in Washington over the use of taxpayer money. But didn't President Obama speak to Main Street last night? Geithner needed to speak to Wall Street, where the problems lie, rather than stay at a distance. He left Wall Street with too few details and no roadmap to help it find its way out of the current difficulties.

Is This Getting It Done?

(At 12:03 p.m. EST)

The Treasury secretary has spoken, and now we get our 300-point


on the


. Probably

not surprisingly

, Wall Street didn't care much for

Timothy Geithner's salvation plan


Is this $1.5 trillion the answer? Does it resolve the questions about getting banks in this country

necessary capital

? Traders sure don't seem to be convinced this is the miracle they wanted.

All 30 stocks on the Dow were lower, led by the financials.

Bank of America

(BAC) - Get Report

was plunging 15%.


(C) - Get Report

was sinking 10.4%.

JPMorgan Chase

(JPM) - Get Report


American Express

(AXP) - Get Report

were each surrendering more than 6%.

Well, maybe the Senate's stimulus plan will turn the mood around. Sure.

(Let us know what you think about the Geithner plan by voting in our poll.)

GM Moves to Pare Payroll

(At 9:33 a.m. EST)



was a little lower at the open Tuesday, falling around 60 points, but the ultimate outcome of the trading session will likely be determined largely by the news out of Washington, as Treasury Secretary

Timothy Geithner

unveils his bank-rescue plan and the Senate prepares to vote on the



As for stocks in the Dow making headlines,


(GM) - Get Report

was leading the way, as reports emerged that the carmaker will

cut around 10,000 salaried jobs

to further reduce costs amid the steep dropoff in auto sales.

Roughly 3,400 of the workers who will be let go are in the U.S., reports said. Pay cuts are also said to be in the works.

GM executives will soon be back on Capitol Hill to explain to lawmakers how the company plans to remain viable. Taking out expenses is going to be required, and this step probably won't be the last one. And I'm still curious to see what happens with this potential reacquisition of parts of







(INTC) - Get Report

is planning to invest $7 billion in new U.S. manufacturing plants, while


said the semiconductor giant has put the word out that it

won't be lowering prices

on its notebook line before the end of May. That report cited market sources who weren't named.

Meanwhile, over at

Barron's Online

, the case was being made for what's right about consumer-goods seller

Procter & Gamble

(PG) - Get Report

. Among the observations in the article -- viewed on a forward price-to-earnings basis, P&G hasn't been this cheap in two decades.