Stocks dive following Bank of America news
Stocks spent this morning giving back all of Tuesday's big gains.
Just before midday, the Dow was down 1.8 percent.
The broader S&P 500 was down 1.6 percent and the tech-heavy Nasdaq was down 1.9 percent.
Bank of America kicked off the sour morning by reporting its fourth-quarter earnings, saying it had lost $5.2 billion by paying back its portion of the bailout. Further, chief executive Brian Moynihan said that economic conditions "remain fragile."
On the other hand, Wells Fargo and Morgan Stanley each reported profitable fourth quarters.
The "buy on the rumor, sell on the news" effect may be helping to tank stocks today as well. Wall Street rallied yesterday on hopes that Massachusetts hopeful Martha Coakley would lose her bid to replace Teddy Kennedy in the U.S. Senate, because she has said she would support the health-care reform bill that many businesses think would be very expensive.
Today, Coakley has lost and stocks are tanking. This is not an uncommon occurrence in the markets.
-- Frank Ahrens
Follow me on Twitter at @theticker
January 20, 2010; 11:43 AM ET
Categories: Corporations , The Ticker , Wall Street | Tags: Bank of America, Dow Jones, Morgan Stanley, Wells Fargo, nasdaq, s&p 500
Save & Share: Previous: Wall Street betting on Coakley defeat
Next: Coming today: A new look for Economy Watch
Posted by: mibrooks27 | January 20, 2010 12:43 PM | Report abuse
Posted by: jamesabush | January 21, 2010 12:05 PM | Report abuse
Posted by: daddmeyer1 | January 24, 2010 12:08 AM | Report abuse
The comments to this entry are closed.