November 17, 2008
November 17, 2008 by admin
The stock market is trying to recover from last weeks sell off of over 5%. The market took a big hit early as Citigroup the world largest employer announced they would be cutting over 50,000 jobs globally. The company has seen a dramatic decline in share price as investors grow more concerned that the firm does not have the appropriate equity to make it through the upcoming recession. The company failed earlier this year in its attempts to acquire Wachovia Bancorp and there is growing speculation that the firms CEO will be replaced.
The market did receive some positive news early in the day as a report on industrial production came in higher that expected. Mortgage rates have been somewhat flat, despite the yield on the ten year bond falling below 3.68%. Investors have grown timid of purchasing mortgage backed securities, adding a layer of additional pricing to the bonds and ultimately the interest rates offered by lenders.