Dow hugged the break even line for a 2nd day. Dow ended up 50 to 7939, advancers 30% ahead of decliners & NAZ rose 5 (dragged down by RIMM's disappointing guidance). Traders had their time divided between making trades & watching TV to see what was happening in DC.
Banks had a good day on hopes for their bailout package, S&P 500 FINANCIALS INDEX up 6. Bank of America (BAC), as a representative bank, gained 51ยข, recovering part of yesterday's decline.
Value
124.81 |
Change
6.15 |
% Change
5.2% |
US Bancorp (USB), the last remaining bank in the Dividend Aristocrat group, keeps getting mentioned as one of the stronger banks, having avoided the ugliest parts of the credit crisis. Berkshire Hathaway has a large holding, although diminished in size after the stock has fallen in half in just a few months. USB has an 11+% yield & a decent 10 year track record (i.e. it doesn't look overly ugly, a positive signal today).
US Bancorp --- 10 years
Bank execs are earning their multi $M salaries today testifying before congress. Just a few of the questions mentioned getting rid of divs (they will accept one penny/qtr) & selling corp planes so they can pay back credit holders (i.e. taxpayers).
