Wall Street: Ugly is back Nasdaq ends at a 6-year low, and Dow and S&P 500 fall to fresh 12-year lows as investors fret about GM, Citigroup and the global economy. By Alexandra Twin, CNNMoney.com senior writer Last Updated: March 5, 2009: 6:15 PM ET
NEW YORK (CNNMoney.com) -- Stocks plunged to fresh 12-year lows Thursday as investors waded through more grim news: GM said its survival is in doubt, bank shares took a beating, and Citigroup fell below a buck.
Adding to the global woes: China defied expectations by failing to boost its economic stimulus program.
The Dow Jones industrial average (INDU) fell 281 points, or 4.1%, to close at 6,594.44, ending at the lowest point since April 15, 1997. The Dow has now fallen 14 of the last 18 sessions.
The Nasdaq composite (COMP) fell 54 points, or 4% to close at 1,299.59, ending at the lowest point since 1279.24 on March 12, 2003, at the bottom of the previous bear market.
The S&P 500 (SPX) index lost 30 points, or 4.2%, closing at 682.55, the lowest finish since Sept. 18, 1996.
Stocks slipped at the open and kept falling from there, with the selling accelerating as the major gauges failed to hang on to key technical levels that traders watch.
"Once we broke through that 700 level on the S&P, which has been intact since 1996, all the people who were watching it left the building," said Joe Clark, market analyst at Financial Enhancement Group.
He said that with the major gauges at these levels, market pros have even less of a sense of where the so-called bottom is.
Stocks have been sliding on and off since peaking in October 2007 amid the housing and credit market collapse and the onset of the recession - which technically began in December 2007.
But the declines have picked up the pace year-to-date in response to growing pessimism about the economy. As of Thursday's close, the Dow is down almost 25% this year, the worst start in the 113-year history of the Dow.
Since closing at a record 14,164.53 on Oct. 9, 2007, the Dow has fallen 53% as of Thursday's close. Since closing at a record 1,565.15 on Oct. 9, 2007, the S&P 500 has fallen 56% as of Thursday's close.
Since hitting a bull-market high of 2,859.12 on Oct. 31, 2007, the Nasdaq has tumbled 54.5% as of Thursday's close. But the Nasdaq has never come near its record of 5,048.62 hit on March 10, 2000, at the apex of the Internet boom.
Financials: Among the big losers, financials were hit especially hard. Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Morgan Stanley (MS, Fortune 500) were among the losers. The KBW Bank (BKX) index lost 11.8%.
Citigroup fell for a time below $1 a share, to its lowest level ever at 97 cents, before ending at $1.02. More on Citi from CNNRadio.
JPMorgan Chase (JPM, Fortune 500) tumbled 14% after Moody's lowered its long-term outlook on the company to "negative" from "stable" late Wednesday.
A variety of insurers slipped including Allstate (ALL, Fortune 500), MetLife (MET, Fortune 500), Chubb (CB, Fortune 500), Progressive (PGR, Fortune 500) and Hartford Financial Services (HIG, Fortune 500).
Failed insurance giant AIG (AIG, Fortune 500) slumped 18.6% as U.S. regulators discussed the company's $180 billion bailout in a Senate hearing.
"It's the same old story, with the financial sector continuing to hammer the market," said Steven Goldman, market strategist at Weeden & Co.
"Everybody is so bearish right now that you would expect to be in the midst of a counter-trend rally," he said. "But the implosion in the banking and insurance sectors is just overwhelming."
Stocks managed to snap back from 12-year lows Wednesday on hopes that China would announce that it was increasing the size of its stimulus plan. But the Chinese premier did not announce any boost to the $586 billion plan at a key political meeting in Beijing Thursday. (Full story)
GM: Concerns about the outlook for General Motors also weighed on stocks Thursday. GM said in its annual filing that there is substantial doubt about the automaker's ability to survive.
The company has sustained huge losses over the course of the recession and has already received $13.4 billion in federal loans. GM has said it needs additional federal money to stay afloat. GM (GM, Fortune 500) shares fell 15.5%.
Wal-Mart Stores: The world's No. 1 retailer reported a bigger-than-expected jump in February sales, thanks in part to lower gas prices. Wal-Mart said that sales at stores open a year or more, a retail metric known as same-store sales, rose 5.1% in February versus forecasts for a rise of 2.4%.
Separately, the company said it is boosting its annual dividend by 15% to $1.09 from 95 cents per share. Wal-Mart (WMT, Fortune 500) shares rose 2.6%.
As a result of Wal-Mart, the overall retail sector posted a slight rise in February same-store sales, versus previous forecasts for a decline, according to Thomson Reuters.
Nonetheless, many retailers continued to see weaker sales, due to the impact of the slowing economy and growing joblessness.
Abercrombie & Fitch (ANF) said same-store sales plunged 30% in the month, sending shares of the clothing retailer down 13%. Nordstrom (JWN, Fortune 500) said sales fell 15.4%, sending shares of the department store chain down more than 10%.
Gymboree (GYMB) warned late Wednesday that first-quarter profit will miss forecasts and same-store sales in the quarter will slide 20% to 25%. Shares of the children's clothing retailer plunged 27% Thursday.
Market breadth was negative. On the New York Stock Exchange, losers beat winners by more than 12 to 1 on volume of 1.88 billion shares. On the Nasdaq, decliners topped advancers by more than five to one on volume of 2.35 billion shares.
Economy: January factory orders fell 1.9% after dropping 4.9% in the previous month. Economists surveyed by Briefing.com thought orders would fall 3.5%.
The number of Americans filing new claims for unemployment fell to 639,000 last week from 670,000 in the previous week, versus economists' forecasts for a drop to 650,000.
Another report showed that fourth-quarter business productivity was weaker than initially reported, falling at a revised 0.4% annual rate versus the initially reported 3.2% annual rate. Economists thought it would grow at a 1.1% annual rate.
Bonds: Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.81% from 2.98% Wednesday. Treasury prices and yields move in opposite directions.
Lending rates were little changed. The 3-month Libor rate held steady at 1.28%, unchanged from Wednesday, while the overnight Libor rate rose to 0.32% from 0.31%, according to Bloomberg.com. Libor is a bank-to-bank lending rate.
Other markets: In global trading, most Asian markets ended lower with the exception of the Japanese Nikkei. European markets tumbled.
In currency trading, the dollar gained versus the euro and fell against the yen.
U.S. light crude oil for April delivery fell $1.77 to settle at $43.61 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery rose $21.10 to settle at $927.80 an ounce.
Yahoo! Finance
4:30 pm : The stock market logged new multiyear lows during the session, and closed at its worst level since the fourth quarter of 1996. Roughly 95% of the companies in the S&P 500 finished with a loss.
Though losses were broad-based, financials were dealt the worst blow. The sector fell 9.9% with particular weakness among diversified banks (-16.5%) and other diversified financial services companies (-13.2%).
Moody's announced it is reviewing the credit ratings of Bank of America (BAC 3.17, -0.42) and Wells Fargo (WFC 8.12, -1.54) for possible downgrade. Moody's lowered its outlook for JPMorgan Chase (JPM 16.60, -2.70) to negative from stable. Sellers pushed both WFC and JPM shares to new multiyear lows.
Citigroup (C 1.02, -0.11), which is a Dow component, registered record lows by falling below $1 per share.
Despite the weakness plaguing financial stocks, General Electric (GE 6.66, -0.03) resisted much of the session's sweeping selling efforts. Concerns about the health of the company's capital arm have made the stock perform as if it were a financial holding. The company's CFO stated in a CNBC interview that GE does not need capital, helping calm concerns for at least the time being.
Automakers continue to struggle amid stiff macro headwinds. General Motors (GM 1.86, -0.34), also a Dow component, was hammered as fears of bankruptcy mounted after the company's auditor expressed concerns about GM's viability. Given GM's pleas for federal financing, market participants were already well aware of the automaker's problems.
Retailers had an ugly session after a battery of companies reported ugly same-store sales for February. Gap (GPS 10.21, -0.45), Abercrombie & Fitch (ANF 18.24, -2.69), American Eagle (AEO 9.13, -0.81), and Nordstrom (JWN 12.23, -1.36) all reported double-digit declines.
However, companies catering to more cost-conscious consumers reported increased same-store sales. Aeropostale (ARO 23.09, -0.02), Wal-Mart (WMT 49.75, +1.26), and Family Dollar (FDO 30.66, +3.39) were the stand-outs. Family Dollar complemented its report with upbeat guidance, while Wal-Mart increased its dividend.
In the past Wal-Mart has been considered a bellwether for retailers. However, the market recognizes that the discount retailer's strength is a reflection of consumer weakness, which is rooted in depreciating home values, falling stock prices, and rising job losses.
Weekly jobless claims for the week ended Feb. 28 totaled 639,000. Continuing claims came in near 5.11 million. Though claims weren't as high as expected, job markets remain weak.
With job losses mounting, many homeowners are unable to stay current on their mortgage payments. In turn, mortgage delinquencies as a percentage of total loans totaled 7.88% in the fourth quarter. That was up from the 6.99% delinquency rate in the third quarter.
Fourth quarter nonfarm productivity declined 0.4%, though it was expected to increase 1.2% after the prior reading showed a 3.2% increase. The lower reading was a result of lower economic output in the fourth quarter.
Meanwhile, fourth quarter unit labor costs increased 5.7%. Economists expected a 3.8% increase.
Factory orders for January fell 1.9%, which is a less severe drop than the 3.5% decline that was widely expected. The drop in factory orders reflects the retrenchment by businesses in the wake of softer spending.
European markets also traded lower Thursday. Germany's DAX dropped 5.0%, Britain's FTSE fell 3.2%, and France's CAC finished 4.0% lower. The European Central Bank lowered its target interest rate 50 basis points to 1.50%, as expected. The Bank of England lowered its target interest rate to 0.50% from 1.00%, in-line with expectations. The Bank of England also announced it will begin buying assets in order to increase the country's money supply.
Meanwhile, China's government said it will target 8% economic growth this year, though officials didn't satisfy participants by providing additional details on its stimulus plans. Hong Kong's Hang Seng lost 1.0%. Japan's Nikkei advanced 2.0%. DJ30 -281.40 NASDAQ -54.15 SP500 -30.32 NASDAQ Dec/Adv/Vol 2323/401/2.15 bln NYSE Dec/Adv/Vol 2883/237/1.88 bln
3:35 pm : Equity markets bounced off of intraday multiyear lows a little after 15:00 ET, but have quickly retraced losses.
Energy commodities also traded with marked weakness. April crude oil experienced selling pressure and closed at $43.30 per barrel, down 4.6%. April natural gas futures closed at $4.08 per contract, down 6%. The contracts closed just a penny above their session lows.
Gold was one of the few bright spots this session. The flight to safety was apparent today as April gold futures closed up 2.3% at $927.80 per ounce. May silver also attracted buyers as it managed to climb 1.6% for the session to close at $13.12 per ounce.DJ30 -257.42 NASDAQ -43.36 SP500 -29.11 NASDAQ Dec/Adv/Vol 2273/425/1.8 bln NYSE Dec/Adv/Vol 2878/236/1.3 bln
3:00 pm : There is just one hour remaining before the closing bell tolls, and the major indices continue to trade at session lows.
More than 3,100 stocks are listed on the New York Stock Exchange and 530 of them are trading at new 52-week lows. Declining issues on the New York Stock Exchange outnumber advancers by more than 10-to-1.
The stock market is currently down some 7% week-to-date.DJ30 -265.55 NASDAQ -49.36 SP500 -30.41 NASDAQ Dec/Adv/Vol 2288/397/1.59 bln NYSE Dec/Adv/Vol 2863/224/1.15 bln
2:35 pm : The major indices continue to trend lower amid broad-based selling pressure. The S&P 500 is currently down 4%, falling to a fresh multi-year low.DJ30 -250.26 NASDAQ -46.54 SP500 -28.42 NASDAQ Dec/Adv/Vol 2243/398/1.41 bln NYSE Dec/Adv/Vol 2861/218/1.04 bln
2:00 pm : Stocks have fallen back to their session lows. Losses are deep and broad-based.
The upside to the losses, however, is that stocks are looking oversold, as they were ahead of the prior session's rally. Given that the general direction of trade continues to move lower, it will likely take an encouraging headline to drive short sellers to cover their positions.
Since the short trade has become such a crowded position, market pundits believe that a short squeeze could turn into a strong rally, especially if the move attracts money from the sidelines. DJ30 -234.88 NASDAQ -14.59 SP500 -25.98 NASDAQ Dec/Adv/Vol 2207/410/1.30 bln NYSE Dec/Adv/Vol 2817/249/955 mln
1:30 pm : The Dow is now down 24% year-to-date, while the S&P 500 has fallen slightly less since the start of the year. The Nasdaq is down almost 17% for the year.
Meanwhile, the S&P 400 Mid-cap Index and Russell 2000 Small-cap Index are showing year-to-date losses of 23% and 29%, respectively.
Worse yet, the Dow Jones Transportation Index is down 36% for the year, and the Amex Airline Index is down 47%. DJ30 -209.56 NASDAQ -36.21 SP500 -23.69 NASDAQ Dec/Adv/Vol 2117/465/1.18 bln NYSE Dec/Adv/Vol 2772/272/871 mln
1:05 pm : A weak close in the prior session opened the door for sellers to regain control over stocks. The stock market has since reversed the prior session's rally, touching fresh multiyear lows in the process.
Weakness was further fueled by news that Moody's is reviewing the credit ratings of Bank of America (BAC 3.28, -0.32) and Wells Fargo (WFC 8.05, -1.61), while JPMorgan Chase (JPM 17.26, -2.04) had its outlook lowered.
Meanwhile, Dow component Citigroup (C 1.05, -0.08) took out all-time lows when it slipped below $1.00 per share, according to reports. The financial services giant continues to be hampered by fears regarding its ability to survive on its own.
Fellow Dow component General Motors (GM 1.81, -0.39) has been beaten down after auditors rekindled the threat of bankruptcy in the troubled automaker by calling out GM's recurring losses and inability to generate cash flow. The report wasn't totally surprising, though, since the auditor's items of concern were among the primary reasons driving the company to borrow billions from the government.
Wal-Mart (WMT 49.81, +1.32) reported positive same-store sales results for February and increased its dividend. Still, many other retailers continue to suffer from weaker consumer spending, which stems from a loss of household wealth and rising unemployment.
Weekly jobless claims were down more than expected from the prior week, but remain at elevated levels. Initial jobless claims for the week ended Feb. 28 totaled 639,000.
Continuing claims totaled 5.106 million. The consensus was pegged at 5.155 million. The prior reading showed 5.12 million continuing claims.
In other economic news, nonfarm productivity in the fourth quarter declined 0.4%, though it was expected to increase 1.2% after the prior reading showed a 3.2% increase.
Unit labor costs in the fourth quarter climbed to a 5.7% gain from the prior reading's 1.8% increase. Economists expected a 3.8% increase.DJ30 -228.99 NASDAQ -41.87 SP500 -26.57 NASDAQ Dec/Adv/Vol 2125/430/1.08 bln NYSE Dec/Adv/Vol 2799/240/793 mln
12:30 pm : Given the persistence of such stiff headwinds as higher unemployment, depreciated home values and asset portfolios, and tenuous economic conditions, consumers continue to keep their purses clasped.
In turn, Gap (GPS 10.17, -0.49), Abercrombie & Fitch (ANF 17.51, -3.42), American Eagle (AEO 9.70, -0.24), Macy's (M 6.55, -0.80), Nordstrom (JWN 12.27, -1.32), JCPenney (JCP 14.45, -0.89), Kohl's (KSS 35.62, -0.19), and Target (TGT 26.39, -0.77) all reported lower same-store sales results for February.
At the other end of things, Aeropostale (ARO 23.15, +0.04), Wal-Mart (WMT 49.89, +1.40), and Family Dollar (FDO 30.50, +3.23) all reported positive same-store sales for February. Wal-Mart and Family Dollar went one step further; Wal-Mart increased its annual dividend to $1.09 per share from $0.95 per share, while Family Dollar provided upbeat guidance.DJ30 -198.56 NASDAQ -37.42 SP500 -23.83 NASDAQ Dec/Adv/Vol 2088/439/973 mln NYSE Dec/Adv/Vol 2797/233/716 mln
12:00 pm : Stocks remain unable to shake the hold of sellers. The S&P 500 has managed to close higher in only two of the last 14 sessions; it is down more than 20% since its February high.
Flagging automaker General Motors (GM 1.82, -0.38) is trading substantially lower amid worries about the company's ability to remain a going concern. General Motors has already requested additional funds from the government in order to help the company stave off bankruptcy, which the company has concluded would be a costly process.
Ford (F 1.81, -0.06) is also trading lower. Its weakness is more closely correlated with the drop in the broader market, though. Ford has not requested funds from the government.DJ30 -212.42 NASDAQ -40.96 SP500 -25.21 NASDAQ Dec/Adv/Vol 2082/424/861 mln NYSE Dec/Adv/Vol 2785/230/638 mln
11:30 am : Broad-based weakness has taken the Dow and S&P 500 to new multiyear lows, breaching those set this past Tuesday.
More than 90% of the companies listed in the S&P 500 are showing losses, which has helped push all 10 major sectors in the S&P 500 into the red.
Financials continue to trade with the steepest declines. The sector is down 8.7% as diversified banks (-16.4%), health insurers (-13.2%), regional banks (-11.9%), and consumer finance companies (-10.5%) lead losses.
Meanwhile, shares of financial services giant Citigroup (C 0.98, -0.15) recently fell below $1.00 per share. According to MarketWatch, this is the first time Citi has fallen to $1 per share.DJ30 -213.06 NASDAQ -42.23 SP500 -25.56 NASDAQ Dec/Adv/Vol 2043/399/724 mln NYSE Dec/Adv/Vol 2751/223/534 mln
11:00 am : Stocks have fallen to fresh session lows, threatening to challenge the multiyear lows set earlier this week.
Meanwhile, commodities prices are mixed.
Crude oil futures contracts are currently down 2.1% to $44.40 per barrel. Crude oil is down just 0.5% year-to-date, but is still roughly 70% off of its high.
Natural gas fell to session lows after the latest natural gas inventory report indicated storage levels declined modestly from the prior week. Natural gas prices continue to trade near those lows at $4.24 per contract.
Precious metals are reversing weakness seen in recent sessions. Gold prices are currently up 0.6% to $911.70 per ounce. Silver is up 0.8% to $13.02 per ounce.DJ30 -156.35 NASDAQ -30.23 SP500 -19.11 NASDAQ Dec/Adv/Vol 1911/474/585 mln NYSE Dec/Adv/Vol 2642/282/421 mln
10:30 am : Stocks have retreated further into the red. However, the downward move was rebuffed as the S&P 500 encountered the 695 level. The stock market remains a bit above the multiyear intraday low of 692 that was registered Tuesday.
Telecom is the only sector trading with a gain. Telecom is currently up 1.3%. Integrated telecom giants Verizon (VZ 28.83, +0.68) and AT&T (T 23.42, +0.42) are leading the way after their shares were upgraded by analysts at UBS.DJ30 -127.28 NASDAQ -23.84 SP500 -14.47 NASDAQ Dec/Adv/Vol 1796/508/436 mln NYSE Dec/Adv/Vol 2556/313/331 mln
10:00 am : Factory orders for January fell 1.9%, which is a less severe drop than the 3.5% decline that was widely expected. The prior reading was downwardly revised to reflect a decline of 4.9% for December.
Mortgage delinquencies as a percentage of total loans totaled 7.88% in the fourth quarter. That was up from the 6.99% delinquency rate in the third quarter.
Stocks haven't shown much reaction to the data. Losses remain widespread.
Trading up: GVHR +86.7%, MIDD +19.1%, OMGI +18.5%, ARII +14.7%, CIEN +13.2%, CSR +12.9%, SONE +12.3%, WTW +10.8%, EDZ +10.5%, FAZ +10%, FDO +9.8%, ADBE +9.2%. Trading down: GYMB -35.5%, DAR -21%, BCS -15%, ING -14.1%, AEG -13.8%, IBN -13.2%, SFL -12.3%, LYG -11.9%, TXT -11.9%, EXM -11.7%, HTZ -11.1%, WFC -11.1%, SBCF -10.9%, CCRN -10.7%, AINV -10.4%, FAS -10.2%, HIG -10.1%.DJ30 -108.01 NASDAQ -15.99 SP500 -11.97 NASDAQ Dec/Adv/Vol 1580/563/229 mln NYSE Dec/Adv/Vol 2407/351/201 mln
09:45 am : Stocks are trading markedly lower as they succumb to early selling pressure. The downward start has erased virtually all of the prior session's gain.
Financials are at the center of this morning's weakness. The sector is down 4.0%.
Bank of America (BAC 3.45, -0.14), Wells Fargo (WFC 8.86, -0.80), and JPMorgan Chase (JPM 18.66, -0.64) are trading as primary laggards in the financial sector. Their decline stems from news Moody's is reviewing BAC and WFC for possible downgrade, while the rating agency has already lowered its outlook for JPM. Shares of WFC registered a fresh multiyear low this morning.DJ30 -112.07 NASDAQ -15.26 SP500 -12.85 NASDAQ Dec/Adv/Vol 1548/500/141 mln NYSE Dec/Adv/Vol 2370/322/138 mln
09:20 am : S&P futures vs fair value: -17.70. Nasdaq futures vs fair value: -18.00. The stock market snapped a five-session losing streak Wednesday, though gains were pared in the final leg of trading. The late-session pullback seemed to bring into question the legitimacy of the rally, which has carried over into the current session. News that the credit ratings of Bank of America (BAC) and Wells Fargo (WFC) are under review, and JPMorgan Chase (JPM) had its outlook lowered hasn't helped the early morning bias. The news brings concerns about the broader financial sector back into focus. Labor markets remain challenged. Weekly jobless claims were down more than expected from the prior week, but remain at elevated levels. The weakness in labor markets continues to suppress consumer spending. A raft of other retailers posted negative same-store sales for February, though discount retailer Wal-Mart (WMT) reported an increase. Trading overseas is weak, and is doing little to inspire a positive tone in the U.S. European central banks slashed interest rate targets, while China's government said it will target 8% economic growth. China indicated Wednesday it will increase its fiscal stimulus, which helped spur gains in the prior session, but hasn't provided the additional details many would like.
09:00 am : S&P futures vs fair value: -18.40. Nasdaq futures vs fair value: -17.80. The European central bank cut its target rate 50 basis points to 1.50%, as expected. The Bank of England cut its target rate 50 basis points to 0.50%. Britain's FTSE is trading with a 2.9% loss. The decline has yet to fully erase the prior session's rally. HSBC (HBC) is a primary laggard... Meanwhile, France's CAC is down 2.8%. Total (TOT), ArcelorMittal (MT), and Societe Generale are leading the session's declines... German stocks are also trading with considerable weakness as the DAX drops 3.4%. Allianz (AZ) is a primary laggard on the German bourse. Volkswagen is trading higher for the third straight session... Asian markets showed traded in mixed fashion. The MSCI Asia-Pacific Index closed 0.5% higher after government officials indicated the country's economic growth target is within reach... Japan's Nikkei advanced 2.0%, rising for a second straight session amid hopes for fresh stimulus from China. A weaker yen helped exporters as Honda Motor (HMC) and TDK (TDK) gained. Shippers advanced after the key Baltic Dry freight index advanced 2.5% Wednesday. The Index is up again Thursday... In Hong Kong, the Hang Seng fell 1.0% as traders took profits from the prior session's rally. China's Premier reaffirmed China's economy would grow at 8% in 2009, and projected new loans this year. China Construction Bank and Bank of China both advanced... In mainland China, the Shanghai Composite closed 1.0% higher. Financials led the gains.
08:35 am : S&P futures vs fair value: -15.70. Nasdaq futures vs fair value: -17.30. Stock futures continue to trade with weakness, indicating a lower start for the session. Initial jobless claims for the week ended Feb. 28 totaled 639,000, which is a bit below the consensus estimate of 650,000. The prior reading was revised a bit higher to 670,000. Continuing claims totaled 5.106 million. The consensus was pegged at 5.155 million. The prior reading showed 5.12 million continuing claims. Nonfarm productivity in the fourth quarter declined 0.4%, though it was expected to increase 1.2% after the prior reading showed a 3.2% increase. Unit labor costs in the fourth quarter climbed to a 5.7% gain from the prior reading's 1.8% increase. Economists expected a 3.8% increase.
08:00 am : S&P futures vs fair value: -16.30. Nasdaq futures vs fair value: -22.30. Stock futures indicate a lower start for the major indices. Following the prior session's close, Moody's Investor Service changed its rating outlook on JPMorgan Chase (JPM) to negative from stable. Moody's indicated the change stemmed from expectations that JPMorgan will continue to incur high provisions and credit costs. JPM is trading 4.2% lower at $18.50 per share in premarket trade. Moody's also announced it has put Wells Fargo (WFC) on review for possible downgrade. WFC is trading 7.9% lower at $8.90 per share ahead of the opening bell. Moody's announced this morning that the ratings of Bank of America (BAC) are on review for possible downgrade. The review was prompted by concern the bank's capital ratios could deteriorate. The news has pushed BAC 4.7% lower to $3.42 per share in premarket action. Capital concerns took a toll on shares of General Electric (GE) Wednesday. However, this morning in a CNBC interview the company's CFO stated there is no need to put capital into the company's capital arm and that speculation about GE's capital risk is overdone. The company expects to be profitable this year. GE is trading 1.6% lower at $6.58 per share in premarket action. The latest weekly jobless claims data is due at the bottom of the hour.
06:27 am : S&P futures vs fair value: -15.60. Nasdaq futures vs fair value: -19.80.
06:26 am : Nikkei...7433.49...+142.50...+2.00%. Hang Seng...12211.24...-119.90...-1.00%.
06:26 am : FTSE...3574.49...-71.40...-2.00%. DAX...3811.77...-79.20...-2.00%.
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