Photo: njaminjami, Flickr
That sickening feeling comes from looking at shares of Morgan Stanley…We were paying attention to it all day, and despite the markets finishing fairly close to their highs of the day, the bank ended down over 7%.
Other financials were down, though not nearly as dramatically. Goldman lost less than 2%, though even still that modest loss is not pretty on a day when stocks held on for a wire-to-wire up day.
We proposed early in the day that perhaps short-sellers were targeting US banks, due to the ban in Europe, though we’re not sure (Pisani mentioned the theory on CNBC, so obviously we weren’t the only ones who surmised this).
Regardless, although it’s positive to end this crazy week with two straight up days, and a loss for the week of just 1.5% on the S&P, the situation in financials should make you feel uneasy.
Add in the far-from-resolved situation in Europe, and, well… somehow it seems like that queasy feeling is coming back soon.