stock market chartMarkets turned back into the red near the end on Tuesday and never managed to recover to close down for the first time in a four days. Mixed data on inflation and manufacturing caused investors to pull back from the the tables. Some of the big losers came from financials: Bank of America (BAC), JP Morgan (JPM), and tech stock (IBM). These pullbacks came after Dubai announced it would get a $10 billion assistance to cover itself and skirt any potential defaults. Citigroup (C) has been falling since announcing it was paying back TARP. Many are feeling this is too early and only being done after the other banks made their announcements.

In terms of the economy, industrial production rose 0.8% in November after holding steady in October. Economists thought it would climb 0.5%. The Federal Reserve is meeting once again, its their last meeting of the year with a decision on interest rates due Wednesday. General Motors said it will pay off a $6.7 billion federal loan by June, ahead of its deadline for repayment under terms of the bailout.

Here is the market summary for Tuesday:

Looking at Wednesday:
Dec 16 Building Permits Nov Forecast= 560K Prior= 552K -
Dec 16 Housing Starts Nov Forecast= 545K Prior= 529K -
Dec 16 Crude Inventories 12/11
Dec 16 FOMC Rate Decision Forecast=0.25% Prior= 0.25%

Happy Investing!

Aman, MBA

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