Stocks Slump Amidst Proposed MBS Buybacks by Bank of America Despite Slew of Upbeat Earnings Reports (BAC, COKE)

Markets were hit hard today after speculation banks will have to buy back foreclosure loans comes closer to fruition. Bank of America (BAC) received a request from a group of insitutional investors to buy back over $47 billion in mortgage backed securities held under false pretenses. A slew of earnings reports were released today, with mostly positive movements by Coca Cola (
KO) , Goldman Sachs (GS) , and Harley Davidson (HOG) on slumping sales but strong earnings. The Dow finished below 11,000 for the first time in a week at 10,978.62, down 165.07 points. The NASDAQ finished at 2,436.95, down 43.71 points on the day, and the S&P 500 followed with a dip of 18.81 points, down to 1,165.90. Treasury yields fell as well, down 0.016% to 2.475%. Crude oil and gold didn’t fare much better, as each dropped $3.54 and $38.90 to $79.54 and $1,332.30, respectively, on an all around bad day for investors.

Word on the Street

• Stocks slump big time amid concerns big banks will be forced to buy back undesirable home loans as part of the foreclosure fiasco.
• Goldman Sachs, Inc. (GS) reports better than expected earnings decline, causing share to rise.
• Bank of America (BAC) shares slide after a group of institutional investors requests the bank buy back $47 billion in mortgage backed securities.
• Sales of Johnson & Johnson (JNJ) products decline, but profit increases as the conglomerate beats analysts projections.
• Harley Davidson (HOG) sales decline for the third consecutive quarter, but the motorcycle dealer still managed to more than triple profits.
• Coca Cola (KO) announced an increase in net profits and intentions to buy back more than $2 billion in shares by the end of the year.
• Lockheed Martin (LMT) trims it’s profit forecast for 2010, blaming slow movement by Pentagon is hurting their sales.

Interesting Tidbits

• Foreclosure fiasco have you thinking about your mortgage debt? Ditch the house payments and move to these places – FOR FREE!
• It’s never to early to start saving for your child’s education – here’s a few tips to get you started.
• Graduate school is expensive – but these 25 MBA programs make it worth the investment.

VN:F [1.9.17_1161]