Wall Street Storm: Citigroup (C), Morgan Stanley (MS), GM (GM), Merrill Lynch (MER), Goldman Sachs (GS)
The Dow plunged while oil rallied to $140 and financials swooned on a negative Goldman Sach’s note. Analyst William Tanona brought Citi down to its lowest level in 10 years and predicted more write downs for Merrill Lynch. He suggested shorting Citi and being long Morgan Stanley. Meanwhile Goldman was downgraded by Wachovia. Karen Finerman thought it amusing that the banks were busy downgrading each other, and said if oil weren’t so high, she would buy in the sector.
Oil Rises Again: Halliburton (HAL)
On Libya’s threat to cut output and OPEC’s prediction that oil will rise to $170, the commodity jumped 4% to $140. Guy Adami discussed Halliburton’s strong performance, and said if the stock could do well on such tape, it will keep going higher.