Traders Await Fed's Announcement
Stocks continued to slide on Tuesday as the Federal Reserve kicked off its two-day meeting. The Dow Jones Industrial Average lost 96.50 points to finish at 9,241.45. Broader stock indicators also declined. The tech-heavy Nasdaq fell by 22.51 points and the Standard and Poor's 500 Index shed 12.75 points. Jitters ahead of the Federal Reserve's policy announcement caused stocks to remain in negative territory during most of the session. The banking sector retreated after CIT Group(CIT) delayed its quarterly filing. Dow financial components American Express (AXP), JPMorgan Chase (JPM), and Bank of America (BAC) all declined. U.S. light crude oil for September delivery fell $1.73 to $68.87 a barrel on the New York Mercantile Exchange. Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.70%. In currency trading, the dollar fell versus the euro and the Japanese yen.
Financials in Focus
It has been almost a year since Bank of America (BAC) agreed to purchase Merrill Lynch. Last September, as Wall Street turned to rubble and panic threatened to come unleashed, Ken Lewis, the CEO of BofA, agreed to swallow one of the country's most toxic investment houses. The final days of the Merrill Lynch saga are upon us, but not without delay from Judge Jed RadKoff . It looks like he wants more names and details before signing off on the $33M bonus settlement with SEC.
Why the hold up in SEC-BofA case?
Video - No Settlement in Sight for BofA
The gift of TARP keeps on giving at Citigroup (C). The company said it provided $6 billion in new loans backed by taxpayer money in the latest quarter, with most of those funds going to state and local governments and propping up the housing market.
CIT Group (CIT) is not ready to reveal its second-quarter report just yet. The company said it has delayed filing its quarterly report with the Securities and Exchange Commission, as it continues to hammer out a restructuring plan with its bondholders. Increasingly, the question seems to be when - rather than if - the troubled commercial lender will file for bankruptcy? What people fail to realize is that the lender's problems have not gone away despite a turnaround in the economy.
Economy Watch
Good news! Corporations are wringing more out of workers! Productivity rocketed at US companies in the second quarter, hitting its highest point in almost six years.
According to a survey released today, U.S. consumer confidence rose in August , mirroring gains in the stock market.
Economy Is Improving, No Thanks to Stimulus
Give the Stimulus Plan a Chance to Work
Fed Chairman Ben Bernanke and his colleagues opened a two-day meeting Tuesday afternoon to consider whether some programs intended to ease the recession and stem the financial crisis should be extended given the recent positive developments in the economy.
Will Fed provide stay-the-course message?
Economy Is Not Yet Pointed in the Right Direction
The value of U.S. homes fell by 12.1 percent in the second quarter from a year earlier, but the rate of decline shrank for the first time since prices began to fall in 2007. Here are five areas where property values are rising and five where prices continue to free-fall.
Other Juicy Tidbits
Bernard Madoff's right-hand man is expected to plead guilty . He could be facing up to 125 years in prison if he convicted on all counts.
Video - Madoff: Who Knew What?
Some American graduates are packing up their bags and heading to China to find a job. Shanghai and Beijing are becoming new lands of opportunity for recent graduates who face unemployment nearing double digits at home.
China's Economic Recovery: Is It For Real?
General Motors is really taking energy efficient cars to the next level. The automaker said that its Chevrolet Volt extended-range electric vehicle will achieve a fuel rating of 230 miles a gallon in city driving . Say goodbye to those gas pumps and record prices.
Will the Volt Give GM a Jolt?
| 
