Tag - ZION

Small-cap stocks plunged as investors engaged in a “buy-the-rumor, sell-the-fact” response to the official rollout of the bank bailout plan. After Treasury Secretary Timothy Geithner served up details on the rescue strategy stocks swooned, safe-haven flows abounded and credit default swaps widened as the hand-wringing began in earnest. At 12:22 p.m. ET, the Russell 2000 (NYSE:IWM) was down 13.40, or 2.89%, at 454.40.

Bank and financial stocks have been in rally mode in recent days in anticipation that the government would swoop in, stave off nationalization of banks, clean out bloodied balance sheets and clear the way for lending to flow freely. However, now that the plan has been unveiled, a realization that this process won’t necessarily be easy appears to have taken over investor confidence. The KBW Banking Index slumped nearly 10% at mid-session, while financial stocks in general paced the selling rout.

Bank of America Corp. (NYSE:BAC) tumbled some 14% after the Geithner press event, while Citigroup Inc. (NYSE:C) was off 10%. Regional banks, which had been a star performer on Monday, were the worst performing S&P group so far today. Small-cap bank Fifth Third Bancorp (Nasdaq:FITB) was down 16% while Zions Bancorporation (Nasdaq:ZION) was off 11%.

Outside of the Treasury market, gold stocks were about the only safe spot to park money in the wake of the bank slide move. The Gold and Silver Index was up 1.3%. Small-cap gold stock Novagold Resources Inc. (AMEX:NG) was up 4.6% at midday, while large-cap group leader Newmont Mining Corp. (NYSE:NEM) was up 1%.

Energy stocks took a dive as well, giving back morning gains amid worries that the bank plan could not provide a quick economic recovery and help restore demand for energy products. Crude oil futures slipped back below $40 a barrel, . . .

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

Small-cap stocks pressed lower on the opening as a fresh batch of earnings failed to impress investors in the aftermath of Monday’s rout on financial stocks and as crude oil drifted up to $135 dollars a barrel. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was off 5.56, or 0.76%, at 731.01.

Regional banks were hammered Monday, with Marshall & Iisley Corp. (NYSE:MI) sinking 5% to 52-week lows on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set 52-week lows, losing about 10%. Unfortunately, the news remains gloomy for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) shedding 16% shortly after today’s opening. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) tumbled 22% as the firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and pay down debt.

The “headline” financial stock coming into today’s action was Morgan Stanley (NYSE:MS), which reported quarterly results that were slightly above the forecast. However, the firm was still pulled into the red, down about 6% in early trading.

Outside of the financial world, FedEx (NYSE:FDX) earnings came in below the forecast, and their outlook for 2009 was dreadfully in line with surging energy costs that are hurting results for the package courier. When the FedEx news came out before the opening, it sparked about a three handle additional decline in large-cap S&P 500 futures.

Speaking of surging energy, crude oil prices climbed back to the $135 dollar a barrel level ahead of the stock market opening on concerns about a potential strike in Nigeria that could crimp output. Crude oil pulled back toward $134 dollars, but should gather direction for the day from the latest stocks data, which will come out . . .