Stocks to extend losses
Stocks are expected to extend losses seen on Thursday, with Dow futures down 1.82% and S&P 500 index futures down 1.74%.
At closing on Thursday, the Dow fell to the lowest level in more than six years, which caused a giant global sell-off in overnight trading. In Japan, stocks were down 2% while in Europe they were falling sharply deeper.
The stock market has limped along the past two weeks — reaching low levels not seen in the past fews months — as investors continue to lose confidence in myriad government programs put forth by the Obama administration programs to strengthen the economy, and poor economic data is continually released every week.
Speaking of data, a new report on consumer prices, which measures inflation, was released this morning at 8:30 am ET. Economists predicted the Consumer Price Index likely rose by 0.3% last month, and the data turned out to be exactly in line with the predictions. The rise was the largest monthly increase in prices since July. (The CPI fell 0.7% in December after dropping 1.7% in November and 1% in October).
Large-cap banks CitiGroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) were getting hammered again in pre-market this morning, after being ravaged on Thursday. Citigroup is down 12.75% to $2.19, while Bank of America has fallen nearly 7% to $3.66 in trading ahead of the bell.
In other news, General Motors (NYSE:GM) has cut loose its Saab division, which filed for bankruptcy protection this morning, while Lowe's (NYSE:LOW) reported a 60% drop in Q4 profits this morning and forecasted a 2009 profit below estimates.
At closing on Thursday, the Dow fell to the lowest level in more than six years, which caused a giant global sell-off in overnight trading. In Japan, stocks were down 2% while in Europe they were falling sharply deeper.
The stock market has limped along the past two weeks — reaching low levels not seen in the past fews months — as investors continue to lose confidence in myriad government programs put forth by the Obama administration programs to strengthen the economy, and poor economic data is continually released every week.
Speaking of data, a new report on consumer prices, which measures inflation, was released this morning at 8:30 am ET. Economists predicted the Consumer Price Index likely rose by 0.3% last month, and the data turned out to be exactly in line with the predictions. The rise was the largest monthly increase in prices since July. (The CPI fell 0.7% in December after dropping 1.7% in November and 1% in October).
Large-cap banks CitiGroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) were getting hammered again in pre-market this morning, after being ravaged on Thursday. Citigroup is down 12.75% to $2.19, while Bank of America has fallen nearly 7% to $3.66 in trading ahead of the bell.
In other news, General Motors (NYSE:GM) has cut loose its Saab division, which filed for bankruptcy protection this morning, while Lowe's (NYSE:LOW) reported a 60% drop in Q4 profits this morning and forecasted a 2009 profit below estimates.
About the Author
Crystal D. Vogt is Managing Editor at SmallCapInvestor.com.
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