Stock Market Report 2/23/09 February 23, 2009

This morning, February 23, 2009, the Stock Market Futures have come off their highs as the Government has taken additional action in the banking sector.

The Government may end up taking a 40% stake in Citi but executives at Citigroup would like to keep it around 25%. The preferred shares would be converted into common stock.

This news had both Citigroup and Bank of America up big but now reality is setting in and they have come off their highs. These two banking stocks will be very volatile today. I view this jump in futures as nothing more then short covering. It still appears as though Wall Street is pricing in lower earnings for the S&P 500. Many targets have the S&P going down to 600-650.

Citigroup ( C ) - Pre Market - $2.01
Bank of America ( BAC ) - Pre Market - $3.97

In other news - DryShips ( DRYS ) has been upgraded by Oppenheimer - raised to Perform from Underperform. DRYS is getting a 10% pop on this news to $4.20 per share.

The Stock Market will be volatile this week as additional details from Timothy Geithner on a banking plan could be released this week. I continue to watch 7286 and 7181 on the Dow Jones as well as 741 on the S&P 500.

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