The markets experienced a huge lift Monday as the eldest Sister, the DJIA, saw its largest point increase ever. The Columbus Day rally was on lighter volume while the bond market was closed. Despite some improvement, the credit markets still remain in horrid shape and the impact from Wall Street's credit crisis is now showing up on Main Street. This week's retail numbers were awful as well as September's industrial production and Philly Fed reading. A recession is now already priced into the market, but now the question remains will the economy enter into a more severe situation.
Global banking giant Citigroup (C) posted another quarterly loss as the credit crisis continues to persist. The firm announced another 11,000 job cut while writing down another $4.4 billion in investments. (10.16)
Two of the nation’s strongest banks JP Morgan Chase (JPM) and Wells Fargo (WFC) reported better than expected earnings. However, both banks reported sharp declines in profits and warned of troubles ahead.
The Consumer Price Index for the month of September was relatively flat as gas prices dropped significantly which help offset price increases in food and healthcare. The Labor Department also reported a drop in weekly wages, the 12th straight monthly decline. (10.16)
Southwest Airlines (LUV) posted its first quarterly loss in 17 years as the drop in oil prices caused the company to write down its fuel related hedge program. However, without this write-down the company reported an operating profit of 9 cents / share. (10.16)