Taking Inventory Of Wall Street 2008-09-15

Once it was a well-known firm, an American icon, with international divisions Its inventory was costing $90 just two years ago At this time, it was quoting at $.19 with no takers And bear in mind, this was no penny inventory

Therefore ends the 178-year saga of Lehman Bros that filed for bankruptcy yesterday evening.Now, we understand it takes years to develop up a provider and a name On the other hand, it only wants just a few months to destroy it and close its shutters.Lehman Brothers filed for Chapter 11 bankruptcy protection after its efforts to uncover prospective buyers proved futile All possible potential buyers wanted a authorities guarantee beyond specified limit of losses, which was refused.LEH acquired $600 bln in assets but also experienced $550 bln in debts What the media did not tell the everyday people was the reality that only the parent holding supplier is heading below Its brokerage, asset-management and Neuberger Berman divisions will operate until suitable prospective buyers are discovered.An additional prominent, iconic investment standard bank as well is disappearing from the scene by early 2009:Merrill Lynch (MER) is being acquired by Commercial lender of America (BAC) for $50 billion – fortunately prior to it deteriorated to the level of LEH Therefore, the market place was spared one more torment The proposal will quickly be presented for approval by shareholders and the federal government Every MER shareholder will get .8595 shares of BAC share for a person share they hold.Next in trouble is the mega insurer AIG (AIG) Strapped for money, it is attempting tough to steer clear of a downgrade in its credit rating with all its added issues Early morning it was reported that they have been talking to Warren Buffet, a single of its previous investors Possibly that was not profitable AIG has assets to sell So Fed stepped in and with the reported guide of Morgan Stanley (MS) prodded ten prominent banks to form a $70 bln collateralized loan fund for AIG (AIG) The consortium now consists of Financial institution of America (BAC), Barclays (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Lender (DB), Goldman Sachs (GS), JPMorgan (JPM), Merrill (MER), Morgan Stanley (MS) and UBS (UBS).State of New York opened the doors of its fiscal subsidiaries to aid AIG (AIG) and will lend up to $20 bln to support the stricken insurer.The weekend parleys in New York acquired their effects on European and Asian inventory exchanges They all fell by three Australia even acquired to suspend trading in its markets.
ECB instantly injected $42.six bln in extra funding in to the European marketplace Standard bank of England infused £five bln into UK markets, thinking about the reality that Lehman’s international division is headquartered in London.Economic Data:The Empire Manufacturing Index for September fell to -7.4 from 2.8 The forecast was for a rise of the index by 1 in opposition to an expected decline of -.three Utility output decreased by -three.2 Production capacity went down from 79.7 towards a predicted value of 79.six) to 10993.27
Nasdaq DOWN by -72.38 (-three.31) to 1201.56NYSE
Volume: 1.7 bln
A/D Ratio: 187 shares superior v 3081 declined.
fifty two-week Higher: 21 fifty two-week Reduced: 674Nasdaq
Volume: 2.7 bln
A/D Ratio: 399 shares superior v 2538 declined
fifty two-week Higher: 15 fifty two-week Minimal: 330Market’s Weakness was rather broad, affecting virtually all main sectors The only sectors that tried to swim in opposition to the slide had been the retailers and the airways The monetary sector fell by nearly sixIn August, CVS experienced proposed a merger with Prolonged Drug at a value of $71 per share Now, its competitor Walgreens also has entered the fray with a larger provide of $75 per share.Very best Obtain (BBY) is acquiring the digital entertainer Napster (NAPS) for $121 mln At this time United Airways (UAUA) elevated the second bag fee to $50, even as the fuel costs came down!Electronic Arts (ERTS) gave up its protracted bid for the Grand Theft Auto fame Take-Two Interactive Software (TTWO).BASF (BASFY) is purchasing Ciba Holding (CSBHY) for $five.five bln Analyst Ratings:Following shares obtained upgrades at present:
Air Tran (AAI), Allegiant Travel (ALGT), Continental Airways (CAL), Delta Airways (DAL), Jetblue (JBLU), Northwest Airways (NWA), Potash (POT), Prestige Brands (PBH) and United Airways (UAUA) Downgraded shares are:
Citrix Systems (CTXS), Cytec (CYT), DR Horton (DHI), House Depot (HD), Hudson Highland Group (HHGP), Iberia Standard bank (IBKC), kforce.com (KFRC), Korn/Ferry (KFY), Lowe’s (Minimal), MPS Group (MPS), New Frontier Media (NOOF), POZEN (POZN), Pulte Homes (PHM), T.Rowe Selling price (TROW) and Whitney Holding (WTNY).Mosaic (MOS) obtained each an upgrade and a downgrade There had been some other relief measures at the moment from the authorities:The SEC finally got revved up to announce it will curb naked short selling quickly, a proposal in the cold storage for extended time.Then we heard that the regulator overseeing Fannie Mae (FNM) and Freddie Mac’s (FRE) will not permit fabulous severance packages to the former bosses of each corporations, now below federal government conservatorship.The Fed has revised the collateral list it will accept when loaning funds to investment banks Now they will accept risky shares and junk bonds as well The Fed also elevated the cap on lending Treasuries to bond dealers by $175 bln to $200 bln Treasury Secretary Henry Paulson conducted a news conference right this moment at the White Home He cited marketplace excesses and an archaic regulatory system for the current troubles of the industry He is pretty confident that the American everyday people require not worry about their loan company accounts!A single of the adverse effects of investment traditional bank failures is that debt insurance is heading to be costlier for the banking sector.With the current economic crisis, there is a larger chance for FOMC to cut federal funds rates by 25 basis points on Tuesday .

Obama Change Or Changling