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Market View
Tracked by: 6 Boarders
Anna,
What is this duplicate ID trip I do not understand.First J and third K do not indulge in derating gimmicks.Anyway we as journeymen have to put up with these things.
This is a dead Board and content is falling like the Market.If you recall my post "The Last Stand" I had sounded a clear warning,based on Technicals.There is really nobody to appreciate the good calls or seperate Wheat from chaff.Sad state indeed.
Intraday volatility is gut wrenching.When I can get whipsawed I wonder what is happening to an average Trader.This Bear Market has the potential to bankrupt many.
Hope God is kind!
Goldchest. ...
In reply to:
SENSEX to rally by 2400 pts in 7 days
Posted by :
Observr
Dear Goldchest
An id of the great person KaliD ji= amarasgaonkar
Now this is the third group formed(on this forum) on the anvil of multiple ids by one person viz.:
First: J
Second: K
And now third another K
Keep it up
- Keen Observer...
Tracked by: 0 Boarder
Russia lends banks $37bn to stem crisis
By Catherine Belton in Moscow
Russia said on Tuesday it would pump $37bn in long-term subordinated loans into state-controlled banks in a new measure to fight off a deepening financial crisis that has seen the steepest losses ever on the Russian stock exchange.
Dmitry Medvedev, the Russian president, announced the measure to pump five-year loans via the two biggest state banks, VTB and Sberbank, after an emergency meeting with the heads of the biggest state banks to discuss what he called “a large scale financial crisis”.
...
In reply to:
The End of Wall Street
Posted by :
sambala
Dow slides further, down 320 points, after Fed chair Bernanke talks of efforts to fight economic problem of `historic dimensions.`
Tracked by: 108 Boarders
Hedge funds are so highly leveraged, they have to book losses. There is no other option for them....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : novice1000
dear BSR,
Most of the FIIs havent made any money in Indian markets except those who entered some 4 or 5 years back.
One should keep in mind that, many hedge funds who entered in the last fiscal might have lost more money than the retail lot. In fact retail investors are sitting on notional losses where as many FIIs have realized the losses by selling stocks at very low levels compared to their buying price.
regards
Tracked by: 0 Boarder
Its a story that repeats itself and still we all fall prey to it.
Almost with regularity, there is a major boom and bust every 8 years or so - the busts after a boom occurring in 1992, 2000 and now 2008.
Each time the reason for boom has been different - the illegal diversion of money belonging to banks into stock markets by Harshad Mehta in 1992, the bursting of internet bubble in the year 2000 (Ketan Parekh and other smaller factors are not being stated) and now the bursting of housing bubble due to sub prime crisis in USA in 2008. The world finds a new reason to go boom and bust every time.
And most of us who have been in stocks for at least a decade know that its a cyclical phenomenon that happens so often. And we almost always are trapped well into it till its almost too late.
And the single most important reason is - IT NEVER LOOKS LIKE A BEAR MARKET IS ON TILL ITS TOO LATE. The environmental factors - economic growth, high demand for goods and services, good sentiment in stocks, high corporate growth forecasts in the coming years - ALL INDICATE GREAT YEARS AHEAD.
And that`s when the bear strikes stealthily. And no one realises a bear market till its REALLY LATE. And you can blame us humans - everything was SO HUNKY DORY when the bears slowly take over that at that time, BASIC LOGIC WILL CLEARLY DEFY ANY REASON WHY BEAR MARKET SHOULD SET IN AT ALL!
Do we have any mathematical indicators that can help us out?
Thankfully, YES! PROVIDED WE ARE WISE ENOUGH TO TRUST THEM.
The 200 DMA has been a reliable indicator for change over from bull market to bear market and vice versa. Any close of Sensex/Nifty below 200 DMA from above for at least three days indicates changeover from BULL MARKET to BEAR MARKET.
This occurred on 01 March 2008 when Sensex closed below its 200 simple DMA of about 17700. Subsequently, when it rose again, it failed to get past the 200 DMA from below on 01 May 2008. This was the last day we should all have been invested in stocks if we had missed the date with 01 March 2008.
Fine, so where do we go from here?
With a heavy heart, we should get rid of all our stock holdings systematically at every rise. Forget the loss you have to take.
And then do what?
Similarly like the 8 year boom and bust in stocks, there is 8 year boom in Government Bonds, when interest rates begin to fall. Without going into details, let us trust that when interest rates come down, bond prices go up and vice versa.
Imagine that a person has a 12% bond of face value Rs.100. He will get Rs.12 as interest every year. Suppose that after one year, interest rate falls to 10%. If another person buys the Rs.100 bond from him at Rs.120, the new owner will still get the market rate of 10%. This is because he will get Rs.12 interest on capital of Rs.120, thus 10% effective yield. Thus, a 2% fall in interest rate caused a 20% rise in bond price. This is not as simple as it sounds as various other factors affect it whose elaboration can be skipped.
So, put the money that you had in stocks in GILT Funds (mutual funds that invest in RBI Bonds which carry highest security rating). For example, in the years 2001, 2002 and 2003 when interest rates fell continuously, GILT funds gave MORE THAN 20% EVERY YEAR as the interest rates were continuously falling. This story could repeat itself as our interest rates are likely to fall from present 12% to about 5-6% next year. So there is goodprofit awaiting GILT fund investors while you can continue watching the stock markets fall.
When do you start buying stocks again? As I said, when the Sensex/Nifty rise above their 200 DMA and stay there for at least three days. The Simple 200 DMA for Sensex as on date is 16053 and this figure varies daily. I do not see this happen in next few months at least.
Stay out of stocks till then. For every rise till then will be a false one.
...
Tracked by: 0 Boarder
IRS changes rule to help ease credit
The agency doubles the time companies can keep cash borrowed from overseas subsidiaries
WASHINGTON (AP) -- The Internal Revenue Service, seeking to make cash more available during the current credit crunch, has issued a rule making it easier for U.S. corporations to bring home money made by their foreign subsidiaries.
The IRS temporarily expanded a 1988 ruling allowing corporations to borrow money held by foreign subsidiaries without having to pay the 35% corporate income tax.
"We were recognizing that there were liquidity restraints for companies" during the current credit crisis, Treasury Department spokesman Andrew DeSouza said Tuesday. He said the action would make it easier for foreign subsidiaries to provide loans to their domestic parents.
The current rule allows a company`s foreign units to make a tax-free loan to the company as long as it is repaid in 30 days. Over a one-year period, the company can have outstanding loans from its subsidiaries for up to 60 days.
The temporary rule change would allow the U.S. company to keep cash from a single loan for up to 60 days. In total, the company could have borrowed money for up to 180 days in a one-year period.
To avoid being subject to taxation, the money would have to be paid back and could not be used as distributions such as dividends.
Congress, as part of tax legislation passed in 2004, enacted a similar break giving corporations a one-time deduction of 85% on dividends received from foreign subsidiaries. That act, aimed at encouraging domestic investment, lowered the effective tax on qualifying dividends from 35% to 5.25%.
The IRS said in a recent report that 843 corporations took advantage of the deduction. It said that $312 billion in repatriated dividends qualified for the deduction, creating a total deduction of $265 billion.
...
In reply to:
A Nation on the Grill
Posted by : sambala
Lamy warns against rise of protectionism
By John Thornhill and Quentin Peel in Evian
Pascal Lamy, director general of the World Trade Organisation, has warned that the global financial crisis could lead to surges in protectionism as governments seek to blame foreigners for their problems.
”That is exactly what happened in the 1930s when it [protectionism] was the virus that spread the crisis all over the place,” he said in a video interview with the FT. ”This is a risk
Tracked by: 0 Boarder
IRS changes rule to help ease credit
The agency doubles the time companies can keep cash borrowed from overseas subsidiaries
WASHINGTON (AP) -- The Internal Revenue Service, seeking to make cash more available during the current credit crunch, has issued a rule making it easier for U.S. corporations to bring home money made by their foreign subsidiaries.
The IRS temporarily expanded a 1988 ruling allowing corporations to borrow money held by foreign subsidiaries without having to pay the 35% corporate income tax.
"We were recognizing that there were liquidity restraints for companies" during the current credit crisis, Treasury Department spokesman Andrew DeSouza said Tuesday. He said the action would make it easier for foreign subsidiaries to provide loans to their domestic parents.
The current rule allows a company`s foreign units to make a tax-free loan to the company as long as it is repaid in 30 days. Over a one-year period, the company can have outstanding loans from its subsidiaries for up to 60 days.
The temporary rule change would allow the U.S. company to keep cash from a single loan for up to 60 days. In total, the company could have borrowed money for up to 180 days in a one-year period.
To avoid being subject to taxation, the money would have to be paid back and could not be used as distributions such as dividends.
Congress, as part of tax legislation passed in 2004, enacted a similar break giving corporations a one-time deduction of 85% on dividends received from foreign subsidiaries. That act, aimed at encouraging domestic investment, lowered the effective tax on qualifying dividends from 35% to 5.25%.
The IRS said in a recent report that 843 corporations took advantage of the deduction. It said that $312 billion in repatriated dividends qualified for the deduction, creating a total deduction of $265 billion.
...
In reply to:
A Nation on the Grill
Posted by : sambala
Lamy warns against rise of protectionism
By John Thornhill and Quentin Peel in Evian
Pascal Lamy, director general of the World Trade Organisation, has warned that the global financial crisis could lead to surges in protectionism as governments seek to blame foreigners for their problems.
”That is exactly what happened in the 1930s when it [protectionism] was the virus that spread the crisis all over the place,” he said in a video interview with the FT. ”This is a risk
Tracked by: 0 Boarder
Lamy warns against rise of protectionism
By John Thornhill and Quentin Peel in Evian
Pascal Lamy, director general of the World Trade Organisation, has warned that the global financial crisis could lead to surges in protectionism as governments seek to blame foreigners for their problems.
”That is exactly what happened in the 1930s when it [protectionism] was the virus that spread the crisis all over the place,” he said in a video interview with the FT. ”This is a risk
...
In reply to:
A Nation on the Grill
Posted by : sambala
Bernanke believed the Fed`s bold actions -- along with the $700 billion financial bailout signed into law by President Bush on Friday -- will help restore confidence in financial markets and help them function more normally.
He also defended the timing of the actions by the Fed and the Bush administration. "We have learned from historical experience with severe financial crises that if government intervention comes only at a point at which many or most financial institutions are insolvent or nearly so, the costs of restoring the system are greatly increased. This is not the situation we face today," he said.
Tracked by: 0 Boarder
Dow slides further, down 320 points, after Fed chair Bernanke talks of efforts to fight economic problem of `historic dimensions.`...
In reply to:
The End of Wall Street
Posted by : sambala
David Aufhauser, a onetime Treasury Department official and former general counsel for UBS?s investment bank, has settled with New York`s attorney general on allegations of insider trading in the auction-rate securities market.
Tracked by: 0 Boarder
Bernanke believed the Fed`s bold actions -- along with the $700 billion financial bailout signed into law by President Bush on Friday -- will help restore confidence in financial markets and help them function more normally.
He also defended the timing of the actions by the Fed and the Bush administration. "We have learned from historical experience with severe financial crises that if government intervention comes only at a point at which many or most financial institutions are insolvent or nearly so, the costs of restoring the system are greatly increased. This is not the situation we face today," he said....
In reply to:
A Nation on the Grill
Posted by : sambala
Bernanke: Crisis could prolong economic pain
By Jeannine Aversa, AP Economics Writer
Bernanke: US may be facing prolonged period of economic pain; door opens wider to rate cut
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country`s current economic performance but also could prolong the pain.
The Fed chief`s more gloomy assessment appeared to open the door wider to an interest rate cut on or before Oct. 28-29, the central bank`s next meeting, to brace the wobbly economy.
Bernanke said the Fed will "need to consider" whether its current stance of holding rates steady "remains appropriate" given the fallout from the worst financial crisis in decades.
If the Fed does lower its key rate from 2 percent it would mark an about-face. The Fed in June had halted an aggressive rate-cutting campaign to revive the economy out of fear those low rates would aggravate inflation. Since then, financial and economic conditions have deteriorated, while inflation pressures have calmed, giving the Fed more leeway to again cut rates.
Many believe the country is on the brink of, or already in, its first recession since 2001.
"The outlook for economic growth has worsened," Bernanke said in prepared remarks to the annual meeting here of the National Association for Business Economics.
All told, economic activity is likely to be "subdued" during the remainder of this year and into next year, Bernanke said. "The heightened financial turmoil that we have experienced of late may well lengthen the period of weak economic performance and further increase the risks to growth," he warned.
Consumers -- major shapers of economic activity -- have buckled under the weight of rising joblessness, shrinking paychecks, hard-to-get credit, declining net wealth and tanking home and stock values. All the strains are "now showing through more clearly to consumer spending," Bernanke said.
Meanwhile, worsening sales prospects and a heightened sense of uncertainty have begun to weigh more heavily on businesses, making them more cautious to hire and to invest in their companies, he said.
Employers cut jobs in September at the fastest pace in more than five years, the government reported last week. Payrolls were slashed by 159,000 last month alone. It was the ninth straight month of job losses. A staggering 760,000 jobs have disappeared so far this year.
The financial and credit crises, which took a turn for the worst in September and continue to stubbornly persist, are likely to "increase the restraint on economic activity in the period ahead," Bernanke said.
Even households with good credit histories are now facing difficulties obtaining mortgages or home equity lines of credit, he noted. Banks are also reducing credit card limits and denial rates on auto loan applications are rising, he said.
Banks, too, are feeling the strain of a lockup in lending, particularly in the market for commercial paper.
To that end, the Fed on Tuesday announced a radical plan to buy massive amounts of this short-term debt in an effort to break through a credit clog that is imperiling the economy.
"The expansion of Federal Reserve lending is helping financial firms cope with reduced access to their usual sources of funding," Bernanke explained.
Invoking Depression-era emergency powers, the Fed will begin buying commercial paper -- short-term funding that many companies rely on to pay their workers and buy supplies.
Cont.....
Tracked by: 0 Boarder
Bernanke: Crisis could prolong economic pain
By Jeannine Aversa, AP Economics Writer
Bernanke: US may be facing prolonged period of economic pain; door opens wider to rate cut
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country`s current economic performance but also could prolong the pain.
The Fed chief`s more gloomy assessment appeared to open the door wider to an interest rate cut on or before Oct. 28-29, the central bank`s next meeting, to brace the wobbly economy.
Bernanke said the Fed will "need to consider" whether its current stance of holding rates steady "remains appropriate" given the fallout from the worst financial crisis in decades.
If the Fed does lower its key rate from 2 percent it would mark an about-face. The Fed in June had halted an aggressive rate-cutting campaign to revive the economy out of fear those low rates would aggravate inflation. Since then, financial and economic conditions have deteriorated, while inflation pressures have calmed, giving the Fed more leeway to again cut rates.
Many believe the country is on the brink of, or already in, its first recession since 2001.
"The outlook for economic growth has worsened," Bernanke said in prepared remarks to the annual meeting here of the National Association for Business Economics.
All told, economic activity is likely to be "subdued" during the remainder of this year and into next year, Bernanke said. "The heightened financial turmoil that we have experienced of late may well lengthen the period of weak economic performance and further increase the risks to growth," he warned.
Consumers -- major shapers of economic activity -- have buckled under the weight of rising joblessness, shrinking paychecks, hard-to-get credit, declining net wealth and tanking home and stock values. All the strains are "now showing through more clearly to consumer spending," Bernanke said.
Meanwhile, worsening sales prospects and a heightened sense of uncertainty have begun to weigh more heavily on businesses, making them more cautious to hire and to invest in their companies, he said.
Employers cut jobs in September at the fastest pace in more than five years, the government reported last week. Payrolls were slashed by 159,000 last month alone. It was the ninth straight month of job losses. A staggering 760,000 jobs have disappeared so far this year.
The financial and credit crises, which took a turn for the worst in September and continue to stubbornly persist, are likely to "increase the restraint on economic activity in the period ahead," Bernanke said.
Even households with good credit histories are now facing difficulties obtaining mortgages or home equity lines of credit, he noted. Banks are also reducing credit card limits and denial rates on auto loan applications are rising, he said.
Banks, too, are feeling the strain of a lockup in lending, particularly in the market for commercial paper.
To that end, the Fed on Tuesday announced a radical plan to buy massive amounts of this short-term debt in an effort to break through a credit clog that is imperiling the economy.
"The expansion of Federal Reserve lending is helping financial firms cope with reduced access to their usual sources of funding," Bernanke explained.
Invoking Depression-era emergency powers, the Fed will begin buying commercial paper -- short-term funding that many companies rely on to pay their workers and buy supplies.
Cont.....
...
In reply to:
A Nation on the Grill
Posted by : sambala
Mr. Karabell is president of River Twice Research. His latest book, "Chimerica: How the United States and China Became One," will be published next year by Simon & Schuster.
Tracked by: 108 Boarders
0708
Dear vkk ji,
I think you have not got my message right.I did not say that senior boarders should say good about market.I said senior boarders cheer up those who have incurred huge losses and are in the verge of a breakdown.Yesterday I recd two messages and both disturbed me .I have some knowledge of reading the mind by reading the message and the first message was written in total anguish and desperation which is a dangerous sign.I thought apart from my replying,if others also write,it would help that boarder to get some peace of mind.Thats all.Hope I have made myself clear now.
Regards,
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : vkk43
Continuous fall in all cement companies share prices since last few days gave us enough indication that all is not well with these companies. They are losing their all support levels. Similarly, the fate of Laxmicotsyn may also fall in that category, if its present price fall is any indication. Otherwise also, all textile mills shares also equally down, though it was expected that depreciating rupee could help them but probably many of these companies might hv booked forex around 40/- for the current year with the result that they are not able to get the benefit of this depreciating rupee.
Infosys results should be good if not better as here I do not forsee any forex losses.
In one of your msg I read that you want senior boarders to speak good about market but market will move as it has to move irrespective of the msgs from all senior boarders. If bad days are ahead, they are and no amount of good msgs from any boarder could make them better. Just take the case of teledata. Last year nobody was prepared to accept the fact that this company was not worth investing. If u remember, I had posted a msg on or about 31st May 2007 when it was quoted around 65/-, that we should avoid making investment in this company as there were number of better companies available in the market. But I got in return a number of msgs asking me to substantiate my statement and therefore, I decided not to post any msg on teledata. Similarly, if we forsee that market weakness is likely to continue for a while, I think there is no harm that we accept this fact and we should not paint a rosy picture of the market, when actually we do not see that.
Thanks. I hv just given u my views as always. May be that I may differ with your views here.
Tracked by: 108 Boarders
Continuous fall in all cement companies share prices since last few days gave us enough indication that all is not well with these companies. They are losing their all support levels. Similarly, the fate of Laxmicotsyn may also fall in that category, if its present price fall is any indication. Otherwise also, all textile mills shares also equally down, though it was expected that depreciating rupee could help them but probably many of these companies might hv booked forex around 40/- for the current year with the result that they are not able to get the benefit of this depreciating rupee.
Infosys results should be good if not better as here I do not forsee any forex losses.
In one of your msg I read that you want senior boarders to speak good about market but market will move as it has to move irrespective of the msgs from all senior boarders. If bad days are ahead, they are and no amount of good msgs from any boarder could make them better. Just take the case of teledata. Last year nobody was prepared to accept the fact that this company was not worth investing. If u remember, I had posted a msg on or about 31st May 2007 when it was quoted around 65/-, that we should avoid making investment in this company as there were number of better companies available in the market. But I got in return a number of msgs asking me to substantiate my statement and therefore, I decided not to post any msg on teledata. Similarly, if we forsee that market weakness is likely to continue for a while, I think there is no harm that we accept this fact and we should not paint a rosy picture of the market, when actually we do not see that.
Thanks. I hv just given u my views as always. May be that I may differ with your views here....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : googol
0707
Dear vkk ji,
I am shocked to see the first result that has rolled out today that of Prism cement.Their NP has fallen 71% on a y-o-y basis and 77% on q-o-q basis.I think many cos would come out with such results only.No wonder cement stocks are falling like nine pins.I do not know what Infosys is going to offer on 10th!.I think Lakshmicotsyn also would fail in the results going by how its price has been butchered
Regards,
Tracked by: 0 Boarder
Cheers Udayan, Appreciate your great views, I am Venkat, Training8m, Queensland, Australia ...
In reply to:
Difficult to predict market direction
Posted by : Udayan Mukherjee
The world keeps changing every night and we come back with a completely fresh perspective - so much has changed since the markets closed last evening or yesterday afternoon. The Participatory-note (P-note) regulations have changed; the Reserve Bank of India (RBI) has surprisingly cut cash reserve ratio (CRR), global markets continue to tumble though Asia is weathering it a little bit better this morning. So global turmoil, lots of policy changes - it will all go into the melting pot today, who knows what will win; policy action or global turmoil.
On global markets:
These are difficult times, unprecedented times in the global markets and therefore the kind of action that we are seeing is also quite unprecedented. Things are very fluid at this point in time. You do not know what the market will react to this morning, it could easily snap back because of the concerted regulatory action, which is happening or it could continue to drift down along with global markets. So it is a tough call.
We are seeing history unfold in front of our eyes. This is something that we do not see in a decade or a couple of decades, the kind of action that we are seeing in global markets and the way regulators across the world are forced to respond to it to at least keep the patient alive. There is absolutely history unfolding and therefore the less you take in terms of big directional calls in the market, the better because we have no clue of where the situation might land us in finally. It is tough times and absolutely historic times for financial markets around us.
For many markets, it is almost like the hemorrhaging right now?
It is and I suspect that will continue because this is not about small interest rate change and it is not about throwing a little bit money at the system or anything like that. We are probably hurtling towards the global recession not just the US recession at this point in time and the kind of economic distress, which might unfold over the next few quarters, is making everybody very nervous and justifiably so.
So right now you don’t want to get into that, okay inflation at 11.99 so we are fine, Cash reserve Ratio (CRR) down more 50-bps, so we are fine or to get extremely bearish between points and say now the market will go to 8,000 Sensex and the Dow will plunge to 5,000. None of us know what is going to happen. Could any of us have predicted the events that have unfolded in the last 4-5 weeks? The biggest analyst in the world couldn’t have seen of what is going to happen.
We are in unprecedented times and none of us know how things will shape up over the next few weeks and months. It is best to say I don’t understand what is going on; it’s beyond my comprehension completely. I don’t want to stick money into assets and all right now, if I could I would dig it under the ground and sit on it since I can’t do that I just need to be in cash at this point and not be brave trying to fool myself by thinking that I am the best analyst in the world who knows exactly how this thing will pan out. When in doubt just keep your money under the mattress that is always worked in history and that is going to work right now.
Asian Indices:
Asia is okay this morning it is not such a bad picture the Nikkei is down about 2%, Straits Times is actually up 1.5%, China is down 1.5%, so mixed bag but no great sell-off as you have seen across the US market things are little bit calmer out here though they started negatively, the most Asian markets seem to have come-off the morning’s lows.
It’s almost like a vortex situation everyday?
It is and the way things are now capitulating in the West is quite alarming because yesterday Europe was down 8-9% apiece. I do not remember in my memory when European markets fell 8-9% a day, Russia was down 19%. These are indices for large markets which are falling 18-19% a day; it’s not a single midcap stock. So it’s very scary, but the pace at which these markets are falling right now lead you to believe that for the near-term you are probably headed to another intermediate bottom because things do not fall 20% a day for very long. So its getting completely overdone right now, you are seeing the absolute peak of panic, it could last for a day or two sure or maybe in the next 48 hours you will probably see a spike back in the global markets. I know not the best morning to suggest that but it inevitably happens when market falls 7-8% a day.
-Udayan Mukherjee, Managing Editor,CNBC TV18
Tracked by: 0 Boarder
David Aufhauser, a onetime Treasury Department official and former general counsel for UBS?s investment bank, has settled with New York`s attorney general on allegations of insider trading in the auction-rate securities market.
...
In reply to:
The End of Wall Street
Posted by : sambala
Dow drops 200 points, as enthusiasm about the Fed`s plan to loosen up credit fades.
Tracked by: 0 Boarder
Dow drops 200 points, as enthusiasm about the Fed`s plan to loosen up credit fades....
In reply to:
The End of Wall Street
Posted by : sambala
NEW YORK, Oct 7 (Reuters) - U.S. stocks briefly turned negative on Tuesday, weighed down by financial shares, as disappointment about the absence of coordinated rate cuts by central banks tempered optimism about a Federal Reserve plan to strengthen the commercial paper market.
The Dow Jones industrial average .DJI was down 41.50 points, or 0.42 percent, at 9,914.00. The Standard & Poor`s 500 Index .SPX was down 4.81 points, or 0.46 percent, at 1,052.08. The Nasdaq Composite Index .IXIC was down 13.13 points, or 0.70 percent, at 1,849.83.
Investors had bet that after Monday`s slide in global equity markets, central banks might mount a coordinated response to calm jittery investors.
Bank of America fell more than 16 percent a day after it announced a plan to raise as much as $10 billion to shore up its capital. The bank also slashed its dividend and posted a slide in quarterly profit in a surprise announcement.
