Lehman Brothers (LEH) Liquidates Assets; Stock Market Recovering
This morning, Lehman Brothers (LEH) announced that it is liquidating three different investment funds. The reason given, according to CNN Money, was “market disruptions.” The liquidated assets total about $1 billion. But this is not all. Lehman brothers also said that it is buying $800 million worth of “deteriorated” assets.
As a result, LEH is down on the stock market this morning. And, on the news, the financial sector was spooked again. However, Goldman Sachs (GS) chief Lloyd Blankfein alleviated some of the worry with his comments that the credit market crisis may be nearing its end.
Stock market moving up now
Now, however, the stock market is recovering from the early morning news from Lehman Brothers that put a bit of a damper on the market. Instead, the stock market is beginning to move up as Wal-Mart (WMT) earnings add a little optimism to the retail sector. And tech stocks are recovering nicely as well today. With AOL and Fox News entering the fray concerning Microsoft and Yahoo, and Intel (INTC) enjoying n upgrade, the tech sector is making a comeback.
MarketWatch reports on the optimism gripping the stock market today:
U.S. stock indexes on Thursday pulled solidly higher after two days of losses, with the forecast from discount retailer Wal-Mart Stores Inc. and a broker upgrade for Intel Corp. helping overshadow March’s disappointing retail sales.
Whether or not this is really the end of the credit market crisis remains to be seen. And even though March’s disappointing retail sales numbers are being overcome, the economic slowdown may continue to keep consumers away from retail spending.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: investing blog, LEH, stock market, stock market news,
Microsoft Yahoo, Lehman Brothers, investment funds
April 12th, 2008 at 5:03 pm
[…] US economy is still struggling, although there has been some optimism that the worst is over in terms of the credit market crisis. Some hope is being seen for the dollar, once the weakening cycle ends — and it is expected […]