Groundhog Day bear market
Stock futures point sharply lower; Dow to surrender the 8,000 mark
As Punxsutawney Phil sees his shadow (meaning six more weeks of winter), frostbitten investors settle in for another day of selling.
Wall Street heads for lower open on economic woes
8 minutes ago
Wall Street is heading for another tumble Monday, with investors nervous about government gridlock and a new round of economic data. Investors are also worried that a "bad bank" plan has not yet emerged from the White House. Such a plan would allow the government to take the riskiest assets off of banks' books and put them into a government-controlled entity....
NEW YORK (MarketWatch) -- Treasurys gained Monday, pushing yields lower, after a report showed consumer spending fell in December for the sixth time in seven months
Two-year note yields (UST2YR:U.S. Treasury 2 Year Last: 0.940.00-0.42%
fell 6 basis points, or 0.06%, to 0.90%.
Ten-year note yields (UST10Y:U.S. Treasury 10 Year
Last: 2.84-0.01-0.35%
Consumer spending slipped 1% in December, slightly more than the 0.9% decline anticipated by economists surveyed by MarketWatch. See story on spending report.
The report also showed personal income fell 0.2%, compared to a forecast for a 0.4% decline, and inflation was flat.
Bonds were higher before the report as U.S. equity futures pointed lower, following overseas markets. That may stem from disappointment in the lack of progress from Congress and the White House on passing a stimulus package or establishing a good bank/bad bank institution that would buy up the delinquent loans and illiquid securities corroding banks' books.
"Equities are getting hit as both the bad bank and stimulus packages do not seem to be done," said Andrew Brenner, co-head of structured products and emerging markets at MF Global.
Deborah Levine is a MarketWatch reporter, based in New York.
Lehman liquidation plan gives creditors stock, not cash
Managers of Lehman Brothers' liquidation proposed substituting stock for cash as payment to creditors. The approach would make creditors wait longer for their money but potentially give them bigger payoffs by holding difficult-to-sell assets until markets improve. Financial Times (01 Feb.)
U.S. Spends Less, Boosts Savings
Consumer spending fell 1.0% in December compared to the month before, and dropped at a 0.5% rate when adjusted for inflation. The savings rate rose to 3.6%.
GLOBAL MARKETS
Banks fall like snow
Banking shares weaken in London and across Europe, dragging major indexes south as heavy snow blankets the U.K., paralyzing commuters and transportation.
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