Feeling Moody's

 | Oct 07, 2011 | 6:48 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aa

,

cat

,

utx

,

ba

It happens in a blink. Market's fine. Then Moody's comes out and downgrades a dozen British banks that we didn't even know were under review. The reason? Because the government isn't going to backstop them anymore the way it did. The major focus banks: Lloyds and RBS.

Of course, the downgrades come with a specific caveat that they at not related to actual business, but in this market all that matters is the downgrade. It doesn't matter that Moody's takes pains to say that it is really the removal of the government backstop that is precipitating the downgrades. No one thinks these downgrades can be that idle or random.

Plus, lots of shorts have been taken off all over the place and the group has been rallying, so people figure, what the heck, take profits.

So on the Moody's-inspired weakness in U.K. banks, prepare for Caterpillar (CAT) going down a buck and Alcoa (AA) rolling over and United Tech (UTX) and Boeing (BA) shedding gains.

That's the world we are in. It is a ridiculous world. I was in a back-to-school classroom last night and someone asked me about a stock and told me how well the company was doing. When I said that he didn't understand that Europe was in control, he pointed out that the company had very little business in Europe. I came back and said that if you wanted rationality, go find another casino.

This one just doesn't pay out enough of the house's money any more.

Columnist Conversations

I'm eyeing possible support in this one....writing about this tonight! View Chart &raq...
It was a quiet start to the week, in as much as the broader market was concerned. With only three trading day...
Market closes flat as oil & commodities take hit today on back of stronger dollar...something that could c...
Latest PAYX/IHS Small Business Jobs Index released today...Mountain region and Texas metro continue to lead th...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.