Packed Schedule to Hit Markets
Volatility in the stock market left equities in a state of pessimism last week. The S&P 500 lost 4.02% in the five trading sessions, including a 2.81% loss on Friday, and the Dow tumbled 2.6% on the week to 9,713, pushing the 10k mark well out of distance.
The catalyst for Friday’s sell-off was speculation that CIT group, the commercial firm founded in 1908, would be forced to file for bankruptcy over the weekend. Those fears became a reality on Sunday as the company, with $64.9 billion in listed assets, became the fourth largest bankruptcy in US history.
“On Sunday, CIT entered what it called a different kind of bankruptcy, one that will let it reemerge from court protection by the end of the year under the ownership of its creditors, who widely supported the reorganization plan,” the New York Times reports. “Even so, the bankruptcy filing means taxpayers will lose the $2.3 billion investment they made in CIT as part of the government’s sweeping financial rescue last fall, marking the first such loss of the bailout program.”
This week the schedule is frothed to the brim with data. Monday opens with a key look at the manufacturing sector and two reports on the housing market. Later in the week focus will shift to the labor market, and the Federal Reserve will also hold a two-day meeting to discuss the future of monetary policy.
Key Events This Week:
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