August 18, 2008
NEW YORK – Wall Street fell moderately Monday amid more reports that the financial sector remains under stress and amid light trading volume.
Investors were concerned once again about financial stocks after media reports of further turmoil in the sector. The Wall Street Journal reported, citing unidentified sources, that Lehman Brothers Holdings Inc. might have to pre-announce its third-quarter results in anticipation of a large loss, while Barron’s said the U.S. Treasury might have to recapitalize mortgage financiers Fannie Mae and Freddie Mac.
Though it comes as little surprise to market participants, there continues to be more bad news about the financial sector.
“It’s a very, very fragile balance of powers right now,” said Thomas J. Lee, equities analyst at JPMorgan. “But the fact that commodities are declining is overall good for consumers and good for the market.”
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