Deutsche Bank has also been hit by the credit crisis. The German commercial bank expects it will have to write down two-point-five billion euros in the first quarter of this year, more than the total of its write-downs in 2007. Deutsche Bank will publish its quarterly figures at the end of this month.
Source: Radio Netherlands
Edward Jones comments on today's US markets in light of the bank write downs.
U.S. stocks are higher and bond prices are lower led by shares of financials, after Lehman Brothers and UBS raised capital, prompting optimism for earnings growth in the sector. Also helping push stocks higher was a government report that showed manufacturing in the U.S. increased more than expected in March, easing concerns about slower consumer spending and business investment.
The Dow Jones industrial average was up 275.61 at 12538.50.
The Standard & Poor's 500 index was up 29.02 at 1351.72.
The Nasdaq composite index was up 55.38 at 2334.48.
The Transportation Average was up 119.48 at 4903.36.
And Utilities were up 8.19 at 487.19.
Volume on the New York Stock Exchange is heavy, with 514 million shares traded. Advancers are leading decliners by a 5-to-1 margin.
The 30-year Treasury fell 1 and 19/32, raising the yield to 4.39%.
The 10-year Treasury fell 1 and 1/4, raising the yield to 3.56%.Deutsche Bank has also been hit by the credit crisis. The German commercial bank expects it will have to write down two-point-five billion euros in the first quarter of this year, more than the total of its write-downs in 2007. Deutsche Bank will publish its quarterly figures at the end of this month.
LOOKING AT OTHER DEVELOPMENTS:
Lehman Brothers raised $4 billion from a preferred stock sale, which may answer questions about the possibility of a shortfall in capital as finance companies prepare for possible write-downs of mortgage-related assets. CEO Richard Fuld is trying to reassure investors since shares of the company fell as much as 48% after investors thought it would face a cash shortage similar to Bear Stearns. Shares of Lehman are trading up $3.84 to $41.48.
International Business Machines was suspended from receiving new federal contracts and has been subpoenaed regarding its contracts with employees of the Environmental Protection Agency. The U.S. attorney's office in Virginia served IBM and some of its workers with subpoenas requesting information about interactions between employees of the EPA and certain IBM employees. IBM stated it is cooperating with this investigation. Shares of IBM are trading up $1.61 to $116.75.
Source: Edward Jones
