Stocks Slammed As Negative Rumor Mill Goes Into Overdrive
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.8%
Revenue Growth %: -1.9%
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Stocks are under heavy pressure midday Monday as negative speculation and innuendo are giving the bears the upper-hand.
At the 2 o'clock hour, the Dow is down 159 points, the Nasdaq is down 52 and the S&P 500 is down 20.
Specifically, bank stocks are collapsing on Eurozone exposure issues and speculation of client exodus. Bank of America (NYSE: BAC) fell below the $6 level on another website outage in addition to the underlying Eurozone exposure concerns.
Bank of America's website has been unstable the past few days, with the homepage and other areas of the site down completely Monday. In addition, analysts at Wells Fargo said BofA has the largest Euro-zone exposure among big U.S. banks.
Morgan Stanley (NYSE: MS) is another bank deeply engulfed in the negative rumors mill. Speculators fear the bank is in trouble after new data showed the company's Eurozone exposure at 96 percent of Tier 1 common capital. Battling these concerns, analysts at Wells Fargo said they believe the exposure is "materially" overstated. The firm sees the company's gross credit exposure at 5 percent and net exposure at 2%.
In addition to problems in Bankland, American Airline parent AMR Corp (NYSE: AMR) plunged 27 percent on bankruptcy fears. Shares were halted seven times due to the intra-day volatility in the shares.
At the 2 o'clock hour, the Dow is down 159 points, the Nasdaq is down 52 and the S&P 500 is down 20.
Specifically, bank stocks are collapsing on Eurozone exposure issues and speculation of client exodus. Bank of America (NYSE: BAC) fell below the $6 level on another website outage in addition to the underlying Eurozone exposure concerns.
Bank of America's website has been unstable the past few days, with the homepage and other areas of the site down completely Monday. In addition, analysts at Wells Fargo said BofA has the largest Euro-zone exposure among big U.S. banks.
Morgan Stanley (NYSE: MS) is another bank deeply engulfed in the negative rumors mill. Speculators fear the bank is in trouble after new data showed the company's Eurozone exposure at 96 percent of Tier 1 common capital. Battling these concerns, analysts at Wells Fargo said they believe the exposure is "materially" overstated. The firm sees the company's gross credit exposure at 5 percent and net exposure at 2%.
In addition to problems in Bankland, American Airline parent AMR Corp (NYSE: AMR) plunged 27 percent on bankruptcy fears. Shares were halted seven times due to the intra-day volatility in the shares.
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