Bank sector shakeup: Full Story from CNN

Both Wachovia and Washington Mutual announced executive management changes amid the ongoing fallout from the credit market crisis.

The CEO of Wachovia (WB, Fortune 500) has been asked to step down by its board, following what the company characterized as a series of setbacks that have weighed on performance. Shares fell 1.9%.

Washington Mutual (WM, Fortune 500) said its CEO will no longer also hold the title of chairman, as the company struggles to return to profitability. Shares were little changed.

Today has once again seen a steady movement up and down posting the Dow at just 6 points up. This morning stocks rallied on the news of Dells improved earnings sending its shares up nearly 7%. Tech stocks such as F5 Networks FFIV jumps as well posting a 3.5% gain. Evergreen solar pushes up at nearly 3%. Although the markets main sectors are not moving there are key areas that are.

Some good news sets out today as oil drops yet again. This huge drop has helped the market rally and has done so in days before. One of the biggest gainers today was Dell as they reported quarterly sales and earnings that topped estimates, sending shares almost 10% higher in after-hours trading.

In general, investors are also breathing a sigh of relief that the mostly completed first-quarter earnings reporting period wasn’t too terrible, outside the financial sector, Nyheim said.

Retail earnings from Sears report a quarterly lose dropping shares 3.4% while others such as Costco and Big lots report gains earning them over a 1% gain on the open market. Things that have the market still teetering on edge are the ever volatile oil prices which we are now seeing almost at $4 a gallon. Jobless claims have had a modest rise and first-quarter economic growth rose. This huge jumble of mixed news as many investors wondering what areas to buy in and what ones to sell.

Strong earners

Companies such as Sears (SHLD) has seen a shard drop in this quarters earnings dropping the stock over 3.4% while others such as Costco (COST) gained 1% and Big Lots (BIG) also gain strong footholds. While many are looking for sectors to invest in with the wild array of news coming out so big players have been the real estate market for long term investing. Many investors know this area of the market is still being oversold and will pick up again in a year or two. Other areas that are heavy in earnings are Tech stocks such as 5 Five Networks (FFIV) up 0.7% and Intel (INTC) which looks to be oversold today as news of a new chip set are on the horizon. Nvidia (NVDA) has also posted gains of about 0.7% today. Other areas of high investment are alternative fuels such as Evergreen solar which dropped sharply today down nearly 7% which is looking oversold as this stock has gained over 7% just yesterday alone.

All index’s end on a higher note while oil rises. Confusion on oil as the demand has fallen and shown that surpluses are up. With this news oil prices should fall and fall hard. However this backs up the news that the companies are not to blame and instead the investors are. Oil remains a huge money pot and key focus for investors.

Gold a good time to invest?

Gold has dropped off its highs lately to end up at just above $905 a oz. Many feel this could be the perfect time to reinvest in gold as it is expected to rise once again. However some things that might effect this are the US Dollar compared to other countries and inflation. The recent spike was due to much of this as gold and silver seem to hold its value and be a good investment vs. inflation.

The Market was off to a good start this morning rising more then 30 points before dipping back down. The volatility of the market today is high as already we have seen two falls and rises of over 30 points. The market as believed to be in a recession now has actually not dipped over the last few days but instead is at a stall any gains are erased by drops the next day and vis versa. The main reason we saw a rise this morning was due to the drop in oil once again. This steady drop should be helping stocks rebound if it holds up for the rest of this week.

Top Sectors for today

Top sectors of the day are Information Technology, Consumer Discretionary and Financial all posting over a 1% gain so far today. Some stocks I have been following are ESLR Evergreen solar currently up 1.7% and F5 Networks posting a 1.39% gain.

It could not have come at a better time. Crude falls $3.34 the biggest decline in weeks. As talks of recession set in this slide in cude will help boost the economy if it stays down. Helping offset pay at the pump prices and prices of every day items as the cost of transporting them falls.

Its nearly a fact now as Warren Buffett, the world’s most famous investor, proclaimed this weekend that “we are already in a recession”. It is getting harder to deny that we are not. Rising prices from food to gas have stifled the economy over the last few months. While the Dow holds steady softly leading and falling the big winner today are the tech stocks.

Tech leads market higher

The S&P 500 today leads stocks higher of nearly 0.3% as a surprise rise in a key measure of new home sales and a reversal in oil prices. Oil drops over $1 leading stocks higher this morning but then tapering off as new news hits the market that the economy is in a recession there is no more denying it.

Other economic gauges had the Conference Board reporting U.S. consumer confidence fell in May to a 16-year-low, as inflation expectations climbed along with gas prices.

Big Movers

Shares of Standard Pacific Corp. (SPF) soared 57.8% on word a private-equity group had agreed to invest more than $530 million in the homebuilder.

Dow gains 24 points as oil retreats from another record high. This allowed investors to reinvest into equity and boost up the market. Bond prices slumped, boosting the corresponding yields for the second session, on ongoing concerns about rising inflation.

Ford drops 8.2% on next years forecast

Ford said it will cut production through the rest of 2008 amid rising oil prices and the sluggish economy, and is no longer expecting to return to profitability next year.

Future stocks to consider

Stocks in alternative and renewable fuels are starting to spike as oil rises. For example today Evergreen Solar (ESLR) rallied 20% in active Nasdaq trade, after the solar-panel producer said it has received two long-term contracts worth around $1 billion.

The Market is seeing some rather high volatility as the price of oil falls but bad news coming in from Ford and the general economy. After yesterdays high sell off from both Fed’s seeing big trouble ahead for the economy and oil prices sky rocketing to a new all time high the market is being pushed today in many directions. While oil falls there is still a huge factor of what is going on with the economy and are things still getting worse? The only reasons experts see the market in gains today is from an overselling panic that hit yesterday and the soft easing of oil falling slightly. Other then that there is no news to suggest better things ahead only worse.

Ford is having some troubles

Due to high pay at the pump prices of almost $4 a gallon many are shrugging away from buying SUV’s and Trucks and instead going to companies that have invested into hybrid tech. such as Toyota which stocks are slightly up today. If the price at the pump continues to rise ford will be a bad spot as sales are slipping already.

Word to the wise

When investing into the stock market look at the broad things such as current events now. Oil prices climbing, is there any reason for them to slip? No, investors are treating this as a gold mind so invest in energy stocks and oil as they are expected to keep moving up. Hybrid technology or a major break though with a auto company. If any new news comes out about a hybrid that gets 60+ miles a gallon or if the company is developing a new technology for a new line of cars within the next year these could be major stocks to cash in. Oil,pay at the pump prices and miles per gallon are on the tops of everyones minds anymore as it has effected us all.