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GM and CitiGroup removed from DOW

admin — Mon, 01 Jun 2009 17:56:24 +0000

The Dow Jones industrial average is the latest Wall Street institution to be reshaped by the financial crisis.

The stock market’s best-known barometer is adding Travelers Cos. and Cisco Systems Inc., replacing Citigroup Inc. and General Motors Corp. The move comes as GM enters bankruptcy protection, a move that was widely expected.

Dow Jones said Travelers, the property and casualty insurer and one-time division of Citicorp, would replace its former parent. Cisco, which makes computer networking gear, is filling the role left by GM after 83 years as part of the Dow.

The changes to the 30-stock index take effect June 8.

This is a major changing of the guard and reflects how greatly the financial crisis has reshaped the world as we know it.

Dow Touches 11,000 The Dow Jo

Citigroup and Bank of America need more capital after stress test

admin — Tue, 28 Apr 2009 17:07:23 +0000

NEW YORK (Reuters) – U.S. regulators are talking to Citigroup Inc about its capital levels after stress testing the bank, people familiar with the matter said, while the Wall Street Journal reported that Bank of America Corp may need billions in fresh capital.

The reports sent Bank of America and Citigroup shares down as much as 10 percent and 5 percent respectively before both pared losses, and hit global stocks, already shaken by fears about the spread of swine flu.

Financial stocks more broadly were jarred by analysts’ reports that other banks may also need to raise funds.

Wells Fargo & Co could need more capital, according to a client note from Deutsche Bank analysts, and regional banks may also need to bolster capital levels, Oppenheimer & Co analysts said in a report. The KBW Banks Index slid as much as 4 percent in morning trading before recovering most of its loss, and was down 1.7 percent at late morning.

Banks and TARP NEW YORK (

US stocks rally. A recap.

admin — Tue, 24 Mar 2009 04:31:25 +0000

Finally, a bit of good news from the forefront.

U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun. Treasuries and the dollar fell.

Bank of America Corp. and Citigroup Inc. both soared at least 19 percent as the U.S. Treasury said it will finance as much as $1 trillion in purchases of distressed assets. Exxon Mobil Corp. and Chevron Corp. jumped more than 6.7 percent after oil rose to an almost four-month high. The Standard & Poor’s 500 Index extended its rebound from a 12-year closing low on March 9 to 22 percent as all 10 of its main industry groups advanced.

Still thinking of investing in oil? NEW YORK (