Market Midday Brief, with mentions of Bank of America (NYSE:BAC), Pfizer (NYSE:PFE), Ford (NYSE:F) and General Motors (NYSE:GM)
The markets have tumbled again today, based on the big story of Greece’s continuing debt crisis. As just about everyone has heard by now, Greek Prime Minister George Papandreou has called for a referendum to the European bailout plan, and this news has spooked investors. The markets rallied strongly last week on the assumption that the worst had passed in the Eurozone. Meanwhile, the US Dollar Index has soared, as money floods towards the relative ‘safe zone’ of the United States.
In US financial news, Bank of America (NYSE:BAC) stock price continues to suffer following their credit downgrade last month, and the scandal surrounding their derivatives move from their Merrill Lynch unit to a subsidiary that is heavy in FDIC insured deposits. The FDIC is objecting to the move, as the unit would have to pay off depositors in the event of B of A’s failure from these derivatives. You can read more on this here: (http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html). Bank of America has shed over 11% at the time of writing, and is over 50% down from the stock’s 52-week high.
In automotive news, car maker Chrysler Group has reported a 27% increase in October sales, compared to 2010. Chrylser is still number 3 in US auto-sales, behind General Motors (NYSE:GM) and Ford (NYSE:F). The big two US automakers are struggling in trading today; Ford has lost over 5%, while GM has shed nearly 9% at the time of writing. Both companies recently announced disappointing third-quarter numbers, as their sales figures fell short of analyst projections.
Pharmaceutical company Pfizer (NYSE:PFE) has resisted the day’s decline, after reporting better-than-anticipated third quarter earnings. The company earned $0.62 per share. The company also raised their 2011 earning projections. At the time of writing, Pfizer had gained nearly 2.5% today.
That’s all for this market news brief. Until next time!