Permanent Value

President Obama’s Proposed Restrictions on Banks Push Stocks Lower

Michael La Salle
January 22nd, 2010

Stocks were down this week as the Dow Jones Industrial Average fell 4.1% and the S&P 500 dropped 3.9%. This down week can be attributed to President Obama’s proposal to impose size limits on commercial banks and restrict running privately owned trading operations. Other economic news was positive including a rise of 1.1% in the leading indicators index for December. In earnings news, out of the 62 companies in the S&P 500 that reported earnings this week, 46 beat analysts’ expectations. Noteworthy names included in the 46 were IBM, JPMorgan, Wells Fargo, Goldman Sachs, McDonalds, and Google who posted fourth quarter earnings of $6.79 per share, well above analysts’ estimates of $6.50 per share.