15 August, 2007

Bullish Sentiment Suppressed by more Credit Fears

The markets suffered another heavy bearish day as the late morning's positivity was pulled down by more woes from the credit sector. Merrill Lynch issued a report which uttered the infamous "bankruptcy" warning for investors of Countrywide Financial (CFC). Countrywide shares plummeted on the news and the persistent fears of more backlash swept through the market.

The Dow's almost 100 point gain in the early going was wiped out by the end of the day as Funds and investors pulled out further in attempts to raise their own cash levels. The sell off was across the board and with seemingly no near term end in sight to this panic-driven spree, spooked investors are heading to the door in droves. One bright spot again was the new IPO VMware (VMW) as it rose again in its second day trading to almost reach a high of $60 before falling back and settling with a 10% gain.

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