BRIEFING.COM: News flow was relatively light Monday, but participants still found an excuse to take money off the table. Their selling efforts pushed the major indices substantially lower; each finished a bit above their session lows.
The early morning mood had been generally upbeat, but as oil prices reversed declines, stocks were sent lower. Stocks then stayed there for the rest of the session as focus returned to the troubles of government-sponsored enterprises Fannie Mae (FNM 6.15, -1.76) and Freddie Mac (FRE 4.39, -1.46), even though crude settled lower below the $113 per barrel mark. The two were spotlighted in a weekend Barron's article that suggests the Treasury may need to recapitalize the duo sooner rather than later. Trading volume climbed in the two, but the increase was not reflected in the broader market.
The lack of volume in the broader market suggests there is no real fear in the market for this matter. Instead, it provided an excuse for participants to take profits. Despite the session's decline the stock market is still up 6.5% and the financial sector is up 22% since the July 15 low. The financial sector finished the session 3.6% lower.
Other news stories were given secondary status. In the tech sector (-1.3%), video game maker Electronic Arts (ERTS 47.76, -0.48) is letting its offer for Take-Two Interactive (TTWO 23.75, -1.09) expire tonight. However, Electronic Arts will join in Take-Two's review of strategic alternatives.
No comments:
Post a Comment