The Market This Week

Market Snapshot:

Dow                        12,099.30                        -59.91

Nasdaq                    2,340.02                         -6.88

S&P 500                 1,325.19                           -8.06

Following a rough week, the market started of Monday with a small advance due to positive forecasts by IBM that estimated earnings 24 percent above expectations. Other experts reasoned that the market was oversold due to last weeks aggressive selling.

 But it was Tuesday that seemed to kill all hopes or optimism from Monday when Citigroup Inc. posted weak results, losing $9.83 billion in the fourth quarter as well as announcing $12.5 billion capital injection. To add to investor pessimism, Merrill Lynch & Co. reported that three foreign firms are investing $6.6 billion. But it was Intel Corp. that took the hardest hit after hours when the company reported lower than expected earnings. Investors are taking this report as a indicator for the rest of the tech sector which is one of the leaders of Wall Street. What is worse is that all news seems to point toward the growing anvil, recession.

Wednesday showed mixed results. Concerns of Intel Corp.’s earnings followed to Wednesday, fearing for the tech sector. However, The Fed released a report indicating that 2007 still saw some economic growth. Especially encouraging was JPMorgan Chase & Co. and Wells Fargo & Co. that reported better earnings that expected, showing that the current financial crisis is not completely damaging all the players of the sector.

The end of the week ended with a continuing lower sentiment. Even after Bush’s announcement of his economic plan, including $145 billion worth of tax relief, the market was well to the downside. But this only added to investors worries as signals come that the economy is truly on its way to recession. All good news earlier in the week was soon forgotten. 


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