Back in the day, a 200-point move in the Dow really meant something. Now it's just the typical morning routine; and after lunch, there's often an equally large swing in the opposite direction. If The Street used to feel like a well-paved avenue, these days it's more like a pothole-riddled mountain road. Investors need new techniques to stay on the right path and ensure a smooth ride.
Copper fell on Thursday on concerns over weakened demand for the red metal as the U.S. economy confronts big losses by investment banks and government reports showing rising consumer prices and stagnant industrial production.
Gold fell 2.4 percent on Wednesday as investors took profits after a failed bid to set another record high beyond $914, but analysts said it might rebound after a period of consolidation.
U.S. stocks rose on Wednesday, after JPMorgan Chase & Co. and Wells Fargo & Co. reported quarterly results not worse than expectations, giving some hope that the battered financial sector may be able to cut some of its losses.
JPMorgan Chase & Co said on Wednesday quarterly profit fell a worse-than-expected 24 percent as the No. 3 U.S. bank lost $1.3 billion on risky mortgages and set aside more money for rising losses on home-equity and auto loans. The bank quadrupled to $1.1 billion the provision it needs to cover continued problems on home equity and subprime mortgage loans.
Gold futures fell on Tuesday, erasing earlier gains after the dollar rebounded against the euro putting further strain on the economy and reducing the appeal of the precious metal.
Citigroup Inc., the nation's largest bank by assets, reported the company's biggest quarterly loss and slashed dividends on Tuesday as loan defaults in recent quarters forced it to write down the value of subprime-mortgage investments by $18 billion.
Citigroup will announce at least a $10 billion injection and a write-down of as much as $20 billion in mortgage-related investments when it announces its fourth quarter earnings tomorrow, the Wall Street Journal reported Monday.
Gold futures rose to a new record on Monday, closing above $900 an ounce for the first time following a dip in the dollar, which increased demand for the precious metal as an investment alternative.
A pair of the largest U.S. banks are expected to report big losses this week, including write-downs worth tens of billions of dollars due in part to the ongoing global credit crisis, triggered by bad bets in mortgage-related investments.
Citigroup is expected to get investments from Saudi Prince Alwaleed bin Talal, the government-run China Development Bank and other investors that could total between $8 billion and $10 billion, according to a report.
Saudi Arabian Prince Alwaleed bin Talal will inject new cash into Citi
MBIA Inc., the world's largest bond insurer, said it has $9 billion of exposure to the riskiest mortgage debt, $900 million more than the company disclosed about three weeks ago.
Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost twice the company's original estimate, the New York Times reported on Friday.
The boom has been driven as much by new strategies as by those wanting a repeat of last year's success.
U.S. stocks rose for a second day on Thursday after Federal Reserve Chairman Ben Bernanke pledged to further cut interest rates and on news that Bank of America is reported to buy struggling mortgage lender Countrywide Financial Corp.
Citigroup, Inc. and Merrill Lynch & Co., U.S. banks which have seen heavy losses due to bad bets on the mortgage market, are in discussions to get up to $10 billion and $4 billion in capital respectively primarily from foreign governments, according to a report on Wednesday.
Gold futures end slightly higher on Wednesday after hitting a record breaking high of $894.40 an ounce during morning trading as high oil prices and nervousness about the U.S. economy pushed the precious metal up for the second straight day.
The dollar gained versus the euro on Wednesday on lower economic indicators in Germany and comments by St. Louis Federal Reserve President William Poole that it is too soon to tell if housing woes will trigger an economic recession.
Gold surged to a record high just under $900 on Wednesday, powered by heavy investor buying and helped by firm oil and a strong debut for Shanghai gold futures, but it later slipped below previous day's closing level.
Goldman Sachs Groups Inc. said on Wednesday the U.S. economy is likely to drop into recession this year leading the Federal Reserve to cut interest rates by 2.5 percent by the third quarter. The global investment bank said in a note to clients there is an 88 percent chance that the Federal Reserve will lower its target for overnight rates to 3.75 percent from 4.25 percent at its next policy meeting on January 30, as February fed funds futures rose 0.02 points to 96.19.
Technology stocks plunged on Tuesday, with the tech heavy Nasdaq Composite index closed down for the eight straight session.
