market continues to be overbought on low volume. anticipate a pullback in the coming days.
just my opinion.
NT
Aug. 11 (Bloomberg) --
U.S. stocks dropped the most in a month, led by financials, after JPMorgan Chase & Co. said credit losses may overwhelm capital at MBIA Inc. and analyst Dick Bove said bank earnings won’t improve in the second half of the year.
MBIA, the biggest bond insurer, tumbled 13 percent after JPMorgan cut the company to “underweight.” All but one of 24 shares in the KBW Bank Index fell as Bove, analyst at Rochdale Securities, said banks will probably retreat. CIT Group Inc., the commercial lender trying to avoid a collapse, slid 19 percent after delaying its earnings report. Sprint Nextel Corp. and Yum! Brands Inc. declined on analyst downgrades.
The Standard & Poor’s 500 Index lost 1.3 percent to 994.35 its worst drop since July 7. The Dow Jones Industrial Average sank 96.5 points, or 1 percent, to 9,241.45. About four stocks fell for each that rose on the New York Stock Exchange.
“Most companies have beat earnings estimates, but they did it through cost savings,” said Alan Gayle, the Richmond, Virginia-based director of asset allocation at Ridgeworth Investments, which manages $60 billion. “Market expectations are being raised. The pressure is going to be on now that the consensus is we’re beginning a recovery.”
