Market Confidence Crisis, Bernanke Hints at Rate Cut, 700 Billion Not Enough

The stock market bloodbath continued for the fifth straight day as concerns deepen over the Federal bail out plan not being enough and seizing worldwide credit markets. Fed Chief Bernanke strongly hinted of an imminent rate cut, to stimulate business, but the market shrugged the gesture off with the DJIA plummeting another -508.39 to 9447.11, the Nasdaq collapsed -108.08 to 1,754.88 and the broad based S&P 500 fell -60.64 to the technically critical 1000 level to 996.23.

Pan American Silver
(
PAAS |
Quote |
Chart |
News |
PowerRating)
– The silver producer was a shiny spot on a dark day, rising to $18.00 share on precious metal prices increasing. However, shares soon pulled back to close unchanged at $17.09/share.

Alaska Air Group
(
ALK |
Quote |
Chart |
News |
PowerRating)
fell 11.76% or $2.14 to $16.05 as it expects significant 3rd quarter losses.

Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating)
banks were hit hard today with BAC falling 26.23% to $8.45 to $23.77/share after announcing a 50% dividend cut.

General Motors
(
GM |
Quote |
Chart |
News |
PowerRating)
led the DJIA lower with a drop of 10.85% or 92 cents to $7.56/share after announcing a decision to cut European production by 40,000 vehicles.

Gold surged $21.30 to $887.50/oz, oil climbed $1.83 to $89.64, and Natural Gas dipped 2 cents to $6.81.

Market Snapshot

Dow

-508.39 9447.11

NASDAQ

-108.08 1,754.88

S&P 500

-60.64 996.23

Economic
News

FOMC Minutes (Sept 16): Consensus NA, Prior NA

Consumer Credit (Aug): Consensus $5.0B, Prior $4.6B

Pending Home Sales (Aug): Consensus -1.2%, Prior -3.2%

Crude Inventories (10/04): Consensus NA, Prior NA

Intial Claims (10/04): Consensus 475K, Prior 497K

Wholesale Inventories (Aug): Consensus 0.4%, Prior 1.4%

Export Prices ex-ag. (Sep): Consensus NA, Prior NA

Import Prices ex-oil (Sep): Consensus NA, Prior NA

Trade Balance (Aug): Consensus -$59.0B, Prior -$62.2B

Win up to $10,000 predicting the direction of a stock!