Investors likely breathed a collective sigh of relief on Friday
as the Dow Jones Industrial Average closed down only 128 points to
8,451.19 following a fall below 8,000 in morning trading. The panicky
street seemed a little less panicky Friday afternoon, capping off the
Dow's worst week ever in which it shed nearly 1,900 points or about 18%
of its value. What a difference a year makes, as the Dow hit a record
high on Oct. 9, 2007, of 14,164.
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The financial sector, which has taken a severe beating as credit markets freeze up, had a glimmer of hope.
Among the banks, Wachovia Corp. was a big gainer, picking up
43.06% to close at $5.15 per share on news that Wells Fargo & Co.
is free to complete its proposed $15 billion takeover as Citgroup Inc.
late Thursday ended negotiations over splitting the bank. Shareholders
from all parties seemed pleased with the outcome with Wells shares
ticking up 3.89% to close at $28.31 and Citigroup climbing 9.13% to
$14.11.
General
Electric Co. restored some confidence in the market, as it reported on
Friday that quarterly net income was down only 22% from a year earlier in line with recent guidance, easing some fears that the credit
squeeze was causing a meltdown in the company's financial services
business. GE soared 13.10% to close at $21.50.
A U.S. blue
chip on shakier ground, General Motors Corp., got a little reprieve as
it insisted Friday that it is not considering a bankruptcy filing. Its
shares gained 2.73% to close at $4.89. The ailing Detroit auto giant's
shares on Thursday fell 31% to a 58-year low shares of General Motors
Corp. after Standard & Poor's said GM's credit could fall further
into junk status. - Michael Rudnick
