Wall Street Disappointed, Does Not Reach To Stimulus

Alfred E. Goldman, Chief Market Strategist at Wachovia Securities comments on today's market closing.

"The stock market reacted badly today to Treasury Secretary Geithner's bank rescue plan. The S&P 500 suffered its biggest one-day drop since December first. Financial stocks led the retreat as Geithner's plan appeared to increase market uncertainty and seemed to lack specifics on how to address toxic assets. Bank of America dropped 1.33 to 5.56. Citigroup fell 60 cents to 3.35.

"The market was also sobered by President Barack Obama's words of warning last night. The President said the economy faces a full-blown crisis and the problems are "accelerating." General Motors announced 10-thousand salaried job cuts, and shares fell 13 cents to 2.70. Alcoa dropped 85 cents to 7.65. The company's debt was downgraded to the lowest investment grade by Standard & Poor's. Intel announced it will spend $7 billion on new U.S. plants, but shares still fell 79 cents to 14.08.

"The Dow closed down 381.99 at 7888.88. NYSE volume totaled about 1.75 billion shares. The S&P 500 was down 42.73 points. The Nasdaq dropped 66.8. Declining issues beat advancers by nearly 6-1 on the NYSE and by nearly 5-1 on the Nasdaq. The 10-year Treasury note was up a full point to yield 2.82%."

Things are getting even worse in after-hour trading. Shares of Applied Materials and Nvidia slip in evening trading session after the technology companies report losses, writes Marketwatch.

In UK, a close ally of PM Gordon Brown suggested that the economic crisis could spark a resurgence in the Far Right. He told that this kind of economy may decide our actions even for the next 15 years.