NEW YORK (CNNMoney.com) -- Stocks slumped Tuesday, with the Dow industrials ending at a 3-month low, as the government's bank rescue plan failed to reassure investors burned by the 14-month old recession.
Treasury prices rallied, lowering the corresponding yields, and the dollar slipped versus other major currencies.
The Dow Jones industrial average (INDU) lost 382 points, or 4.6%, closing at its lowest point since Nov. 20, the date considered by many experts to have been the low of the bear market. The Dow had lost as much as 422 points in the afternoon.
The Standard & Poor's 500 (SPX) index lost 43 points, or 4.9%. The Nasdaq composite (COMP) lost 66 points, or 4.2%.
The TARP announcement "was a huge disappointment," said Stephen Stanley, chief economist at RBS Greenwich Capital. "There's been an incredible buildup for weeks and then they release a plan that has little in the way of details."
Stocks slipped leading into Geithner's late-morning speech and accelerated after he finished outlining the plan. He's providing more details this afternoon in a congressional hearing.
"It just doesn't seem that groundbreaking and that may have disappointed people," said Brian Battle, vice president at Performance Trust Capital Partners.
After much debate, the Senate passed its $838 billion economic stimulus bill Tuesday afternoon by 61 to 37. Now leaders will need to negotiate a final bill with the House, which already approved an $819 billion version of the plan two weeks ago. (For details, click here.)
Enthusiasm about the economic stimulus has waned in the weeks since it was first proposed.- CNN News
No comments:
Post a Comment