| Wall Street drops as optimism wanes
Bank shares, among this week's biggest gainers, declined as talk of more write-downs related to the sinking housing sector circulated through the market. The S&P financial index dropped 2.5 per cent on Friday. Drug companies, which generally prosper in good times and bad, took a hit on Friday after helping lead the market higher earlier in the week. Schering-Plough and Merck set the pace, sinking 5.7 per cent and 3.6 per cent, respectively, after regulators said it would take more time to evaluate a key drug co-marketed by the companies. Despite Friday’s declines, the Dow and S&P ended the week higher for the first time in five weeks. The Nasdaq was down for the fifth straight week. "The economic backdrop hasn't changed, and there is still a high level of nervousness about any headlines that reinforce there is still reason to be concerned about the market's direction," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
TODD HARRISON: Five Reasons For Optimism In These Tense Times
'I find I'm so excited, I can barely sit still or hold a thought in my head. I think it's the excitement only a free man can feel, a free man at the start of a long journey whose conclusion is uncertain.' -- Ellis Boyd Redding, The Shawshank Redemption NEW YORK (Dow Jones) -- It's rough out there, as anyone within shouting distance will tell you. And make no mistake, there's a lot of yelling going on. Main Street is screaming at Wall Street, politicians are barking at each other and there's a heightened state of tension spreading throughout the world. While it's easy to get caught up in the doom and gloom, we must remember that the sword swings both ways. An ability to view obstacles as opportunities is the hallmark of human spirit and silver linings exist in this economic twist.
Mortgage losses slam Citigroup
NEW YORK Bad bets on mortgages drove a $10 billion loss for Citigroup Inc. in the last three months of 2007, the worst in its 196-year history, adding to a wave of weak economic data pointing toward a recession. The nation's largest bank also announced Tuesday it had cut 4,200 jobs and slashed its dividend, and the poor performance forced Citi to turn to foreign investors for an infusion of cash. The news helped drag the Dow Jones industrial average down more than 277 points and wiped out almost $10 billion in market value in Citigroup stock alone. Shares in the bank skidded 7 percent to a new five-year low. The biggest hit came from a $19.1 billion writedown in the value of the bank's investment portfolio. But it also set aside $4 billion Tuesday to coverfrom Business 1 anticipated losses on loans to U.S.
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