Nov 01 2007
Markets Slide Despite Fed Cuts
Tuesday’s Fed cuts haven’t seemed to help much. Citigroup’s sub-prime induced tailspin didn’t abate. It’s down another 6.5% today in trading on fears of a dividend cut. CIBC World Markets analyst Meredith Whitney cut its performance outlook and downgraded the sector. Bank of America took a 3.5% hit and JP Morgan is down too.
Of course it’s hard to separate out the financial sector slide from the overall stock market dip. The Dow is off more than 240 points. A lot of that comes from Exxon’s lower than expected earnings. Its net income was off by 10% despite a slight increase in revenue.
It’s tough to quarterback an economy and I’m certainly not one to judge the Fed’s action immediately, but gosh, this doesn’t look like things are going in the right direction. Some economists are predicting a slow-down in Q3-Q4 and I’m starting to feel that way too.
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