Stocks Retreat After Obama Speech To Congress
Evelyn Rusli, 02.25.09, 11:30 AM EST
This is a transcript of the Market Update: Midday video report.
Stocks retreated on Wednesday, with the Street looking for direction from Washington. President Obama's Tuesday night Obama Speech To Congress failed to move the needle on Wall Street; meanwhile, investors are watching Fed Chairman Ben Bernanke's meeting with the House Financial Services Committee.
Regulators are expected to begin stress tests of the nation's major banks to determine how much capital, if any, they need.
The housing sector digested yet another disappointing report. Existing-home sales fell 5.3% to 4.49 million, coming in below economists' expectations.
American International Group (nyse: AIG - news - people ) may have lost a suitor for its $20 billion Asian life-insurance unit. According to reports, U.K. firm Prudential is unlikely to make a bid by Friday's deadline, leaving Manulife and Singapore sovereign wealth fund Temasek Holdings in the running.
Citigroup (nyse: C - news - people ) is also said to be mulling a sale of a key Asian asset, its Japanese bank, Nikko Citigroup. The firm has already put the Nikko Cordial brokerage unit up for sale, but now reports suggest it may bundle both units to raise even more cash. Obama Speech To Congress
On the earnings docket, it appears the cash-strapped consumer may be avoiding pricier meals for peanut butter and jelly sandwiches. Jam-maker J.M. Smucker (nyse: SJM - news - people ) said profits were up 84% in its third quarter. Even so, the Ohio-based company lowered its 2009 guidance because of higher costs and lower demand for peanut butter following a product recall.
Bond insurer Ambac Financial Group (nyse: ABK - news - people ) recorded a $2.3 billion fourth-quarter loss Wednesday, after setting aside more than $1 billion for mortgage losses.
Source:Forbes
