Dow fell 86, decliners over advancers 2-1 & NAZ dropped 5. For the week, Dow tumbled 248 to 7062.

Banks had a very bad day (strongly influenced by Citi news) taking the S&P 500 FINANCIALS INDEX down sharply:

Value 102.01

Change -7.21

% Change -6.6%

The Alerian MLP Index was up 2, rising thru the day then giving up ground going into the close (shown in the Yahoo badge on the right). REITs, junk bonds & the VIX were flattish to weak. Even oil & gold were only slightly down.


The 6.2% annualized shrinkage in the economy ranks as bleak. Markets took the revised GDP numbers fairly well, they were probably already discounted The next qtr may be dreary but hopefully will be less bad. H2 while showing a decline should see further improvement. Gov spending may start to show up then although may not be fully felt until next year. All this assumes the credit crunch doesn't get much worse.


Citi has changed from a stock to a call (even though it's still in the Dow). Because of gov backing (investment) its life has been extended to indefinite (maybe many months). It's selling around 1½ which will be tempting for those who don't mind playing with fire. Any form of excitement could give a quick double. Of course, Barney Frank is now the CEO. He will make/influence more & more business decisions as he will be speaking for the largest stockholder. Citi should not be viewed as the only bank in trouble. More cases will arise.


General Electric (GE), down 45¢, slashed the div to only 10¢ despite numerous reassurances that the div was safe. S&P will have another company to be removed from the Dividend Aristocrat list at year's end. In 2009, already, PFE, SST, MAS & now GE, all from the group, have cut divs.