Stock watch: Bank of America, GM, Chase and Citigroup
As for the Dow, Wal-Mart was the only winner of the 30 components, adding 3.1%. JPMorgan Chase and Citigroup were dropping more than 7%. Bank of America was losing 9%.
The Dow Jones Industrial Average was recently falling 247 points to 7603, and the S&P 500 was down 31 points at 796. The Nasdaq was lower by 53 points at 1481. All were off more than 3%.
GM (GM Quote – Cramer on GM – Stock Picks) was another big drag, worse by 8.8%. I guess there’s just not a great deal of hope about the plan Rick Wagoner and friends have formulated to give to the government. Not that there seems to be a great deal of hope about anything right now.
President Barack Obama is set to sign the $787 billion stimulus package into law Tuesday. He is also scheduled to outline a plan to help stem mortgage foreclosures Wednesday.
While Wall Street eagerly awaited the government’s plans to help the economy, now that those programs have become reality, investors, however, are aware that it will take some time for them to work.
GM has already received $9.4 billion from the government, and would receive another $4 billion if the Treasury Department signs off on its viability plan. Chrysler has borrowed $4 billion. It is seeking another $3 billion.
