Wall Street sinks on Obama bank plan fallout, China, Bernanke uncertainty, and more

New Parallels Desktop 5 for Mac. $15 discount!“U.S. stocks tumbled in their worst three-day slide in 10 months on Friday on fears the White House’s plan to curb bank risk-taking would cut profits and a drop in tech shares after Google Inc’s disappointing results,” Ellis Mnyandu reports for Reuters.

“Uncertainty about the Senate’s confirmation of Ben Bernanke for another term as the Federal Reserve’s chairman also rattled investors in a week when political squabbles helped erase stocks’ gains for 2010,” Mnyandu reports. “‘Between uncertainty over Bernanke, Obama’s bank regulation proposal and the election in Massachusetts, the market is like a cork in the water and the Democrats just hit the flush,’ said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. ‘It looks like we’re headed really low.'”

Mnyandu reports, “Since the Democrats lost their 60-vote hold in the Senate with the election of a Republican in Massachusetts on Tuesday, there is a growing sense among investors that political uncertainty has all but ended the rally that began in March.”

MacDailyNews Note: Shares of Apple (AAPL) lost $10.32, or nearly 5%, to close the regular session below $200 at $197.75.

Mnyandu continues, “Google sliding 5.7% to $550.01, a day after the Web search company posted quarterly revenue that missed some forecasts… Stocks hit session lows within the last half-hour on news that Britain had raised its international terrorism threat level to its second highest alert.”

“The S&P 500 registered its worst 3-day slide since March 2009, around the start of the recent rally that sent both the S&P 500 and the Dow to 15-month highs as recently as Tuesday,” Mnyandu reports. “The Dow and the S&P 500 are now off more than 2 percent year-to-date, while the Nasdaq has shed almost 3 percent.”

“Aside from worrying about how the Obama administration’s proposals might hurt bank profits, investors also fretted about the likely impact of China’s efforts to prevent the world’s third-largest economy from overheating,” Mnyandu reports. “Since China has led the nascent global economic recovery, any curbs it puts on lending threatens to slow demand that other economies, including the United States, had relied upon to spur their own growth. Banking industry sources said this week China ordered some banks to restrict lending for the rest of the month.”

Mnyandu reports, “Other disappointing news on the technology front came from Advanced Micro Devices Inc (AMD.N), which warned that sales in the first quarter of 2010 will be down. Its shares tumbled 12.4 percent to $7.88.”

Read more in the full article here.

206 Comments

  1. Obama, what a fscking joke.

    He couldn’t even save the jobs at Air America.

    If you voted for Obama, can you explain why? I never saw what you think you saw. I just saw a very inexperienced Liberal for whom I’d never cast a vote.

  2. I’m always amused when people place ALL the blame of bad financial news at ANY US President’s feet.

    I know this may come as a shock to you, but the US President doesn’t actually control the entire world’s financial situation. There are larger market forces at work. No really, you can look it up if you like. I’ll wait.

  3. Bernanke should go. What is scary is that we have reached the point where the economy is becoming insensitive to fiscal and supply side manipulations by government. I guess the economy is more complex than a TWO dialed radio.

    just my $0.02

  4. I love how every American problem gets blamed as Obama’s fault. He has such a hand in everything that goes on….Give me a break….no give him a break and everyone should own up to their own mistakes.

  5. Didn’t Cramer call for a huge rally following the Brown win? What happened? Yeah…Cramer’s a douche but his logic was sound. Republicans can block any initiatives going forward, hold up any progress, mire the wheels of government even further.
    That should be GOOD for business, no big health care plan. Insurance companies and big drug company profits are protected. Why are we seeing such a sell off after the big Republican win?

    We aren’t here to discuss the Mac on Mac Daily News after all. This is a political discussion board. So lets whip up the hatred for Obama! Let’s use insipid names for politicians! Lets carry on like junior high school students outside the gym and do a lot of name calling and uninformed accusations! Yeah!

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