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Stock Market News 8-20-2008 (FRE, FNM, FCX, DVN)

Again Freddie and Fannie are in the spotlight today with the media and investors. They’re both look like they’ll be put out to pasture at this rate. Today Freddie Mac (FRE) was down big after it was announced that they might have trouble selling off their $3 billion of their debt. This has made many think that they will need to be bail-out by the government (aka…the taxpayers). The stock is down over 22% in today trading and down 87% in this calender year. As for Fannie Mae (FNM), they too were also beaten up bad again today. Falling almost 27% today and down 85% for this year alone.
If you look at where they were in September and October it’s much worse than that. In other financial news…It’s all the same crap for them too.
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How about those energy stocks today? Crude inventory came out today. It’s pretty much as I expected since people are driving less. The inventory should go up, unless the refineries are pulling back on their production at the same time (which would be foolish). The inventories rose by 9.4 million barrels, much more than what the street was expecting. After it was all said and done, the price of crude did rise today to about $116 per barrel. Across the energy board today the majority of them were up a good percentage, but all were up.
Some of the commodity stocks also did quite well, take FCX, they’ve been down big over the last few months, but had a pop of 7.5% today. As for Devon (DVN) they had a 6.5% jump in today’s trading.
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I wouldn’t get too comfortable with the performance of the markets. Things are looking like it’s starting to settle, but be careful. Like I said earlier today in 5 tips on beating the stock market, we are in a bear market and it can give you the illusion of a bull market.

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