A Merrill Lynch analyst put out some groundbreaking research on GM this morning claiming that bankruptcy was an option for the auto company. He reversed his prior buy recommendation (issued in February 2007 when the stock was at $40) and cut the stock to an "underperform" now that it is trading below $11.

While the DJIA dropped modestly yesterday, the Nasdaq Composite was strong and the A/D was 3/2 positive on issues and volume. Oil helped by dropping a $1.00 a barrel but the dollar was also soft.

Lehman and AIG are also in focuse as Lehman Brothers results are expected and AIG ousted its CEO.

According to the Wall Street Journal, more and more companies that issued PIK toggle bonds during the private equity boom are opting to pay investors more debt rather than interest. For those unfamiliar with PIK toggles, it is debt issued with the option to substitute interest payments for more debt.

SEC Charges Banc of America Investment Services With Failing to Disclose It Favored Affiliated Mutual Funds.

The Dow and Nasdaq were moderately lower at midsession after economic reports suggested the U.S. is closer to a recession. A rise in commodity prices is lifting shares of mining and energy companies.

After the meltdown on Monday, the benchmark Sensex dropped another 338 points, stretching the downward trend for the fourth day in a row, with banking stocks sliding on reports of ICICI Bank reporting a market to market loss of 264.34 million dollar.

On the basis of the last consecutive three trading days we can strongly confirm that the U.S. economic condition has definitely become less favorable and it is about to face a severe dollar crisis. During those last three days, the dollar dropped several times to new records low versus the 15-nation currency.

The widely followed stock market averages finished higher Friday after working through a number of conflicting signals. On the negative side, Google (525.00, GOOG) was off on disappointing earnings results and recession concerns were fanned by both non-farm payrolls and construction spending.

U.S. markets were volatile throughout the day, but all major U.S. equity indexes maintained positive momentum and closed higher.

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Intel's weak outlook is punishing not only the tech stocks, but also the entire US markets. While the stocks are poised to open weak, they have come out of their worst levels.