Stocks crash, then rebound, then crash, then rebound, then..
The market enters Wednesday in a similar manner in which it acted on Tuesday. The Dow fell almost 200 points on Tuesday, very close to a bearish market, then rebounded late in the afternoon closing up 153 points at 10,808. The good news was that the European finance ministers were working on a plan to support European banks, according to the Financial Times. Yesterday, Moody's downgraded Italy's debt and today Spain is expected to announce it is missing its forecasts. CNBC is reporting that IMF's Borge's says 200-300 billion Euros are needed to recap European banks, and that is a relatively small amount. The IMF will support a Greek bailout. Based on this hodge podge of European news, the markets are unclear regarding how to react. The Asian markets were mostly down on Wednesday. The European markets, after opening up, seem to be falling negative.
Bernanke warns "recovery close to failing"
In a speech on Tuesday, Treasury Secretary Ben Bernanke indicated the "recovery is close to failing" and the Fed would do what it could, but it might not be able to do much more. He laid the onus on Congress to not make too many cuts which would hurt the economy.
Ford and UAW come to historic agreement
Ford and the UAW have agreed that workers will receive profit sharing checks and a signing bonus. In addition, management agrees to invest in its factories and increase the workforce. Ford workers agreed to this 4 year contract, indicating they understand the competitive global forces and are looking to work with management. The Associated Press reports that similar agreements are in force at GM.
US factory goods fall slightly in August
The Commerce Department reported on Tuesday, according to the Wall Street Journal, that orders for factory goods were down .2% in August. The Institute for Supply Management said its manufacturing index rose to 51.6 in September to 50.6 in August. A reading above 50 indicates growth. The fear is that manufacturers are working off of a backlog and not attracting new business.
Black Rock supporting tougher ETF safeguards
Black Rock, the leading ETF provider, with over $600 billion in ETFs, announced that it supports tougher safeguards for the ETF industry. An ETF is an exchange traded fund that seeks to mirror an Index or a security. A derivative ETF was at the center of the UBS rogue trader scandal in recent weeks. Black Rock is encouraging full transparency across all ETFs.
Obama to push for permits for power lines
The Obama administration, in an effort to support jobs, is pushing the Energy Department and the Interior Secretary to speed up the process to approve the permits for seven proposed electric power lines in 12 states. The project would increase jobs and strengthen the power grid.
Apple jumps to top tier of global brands
USA Today reports that Apple has jumped into the world's list of Top 10 most recognizable brands for creating "an entire lifestyle and way of living". Apple is now ranked number 8 in global brands. Coca-Cola remains in the no. 1 spot for the 12th year in a row.
"App-cessories" hottest holiday toy
Toys R Us will deem "app-cessories" the hottest holiday toy trend on Wednesday, according to USA Today. This not only assumes that everyone will be buying their child an iPad, but that they will determine how to gift and wrap an app. The hottest apps for kids, which are not even close to the prevailing 99 cent range for apps, include a Crayola app, a Cars 2 app, an Arcade (which is quite pricey) and a Helicopter App. Christmas is becoming virtual.