Bernanke Speaks, Market Declines...go figure
The market was getting a bounce at the open, but two events hit it and caused it to quickly go back into the red.
The first was the Philly Fed survey, which hit its lowest number since October 2001. That's a pretty weak reading, related to manufacturing.
The other factor was that Bernanke began his speech. I have commented on my dislike for this Chairman, and the fact that the market seems to go down nearly every time he opens his mouth tells me I'm not the only one that feels this way.
He didn't really say anything new, other than the economic outlook has deteriorated and that downside risks to growth are now more pronounced. But we knew that. And one of the main reasons is his policy.
Merrill (MER) reported a larger than expected loss, and had a $11.5 billion write-down for subprime and CDO exposure. That's a pretty big loss, and the stock is lower.
Asian markets bounced back overnight, as buyers stepped in to buy the pullback. Oil is flat this morning, but the energy stocks are down again, likely on economic concerns.
The NDX is the only major index in positive territory, but biotechs are leading the way today.