U.S. stocks tumbled Thursday as concerns about a subdued economic recovery played in the minds of investors.  Safer bets like dollar strengthened and oil prices slumped.  As investors turned to safe havens, Treasury prices rose, sending corresponding yields lower.  Yields on three-month bills, considered one of the safest bets, turned negative for the first time since December.  A Bank of America Merrill Lynch downgrade of semiconductor industry also added to the downward pressure.     

The spike in bond prices came even as the Treasury announced plans to auction a record $118 billion in new notes next week – an auction schedule of $44 billion 2-year notes on Monday, $42 billion 5-year notes Tuesday, and $32 billion 7-year notes on Wednesday.

The Dow, which had plunged as much as 170 points during the session, ended down 93.87 points, or 0.9%, to 10,332.44.  The broader Standard & Poor's 500 index fell 14.90

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With no economic reports on Wednesday and bond markets closed for the Veteran’s Day, Wall Street was witness to a quiet trading session, but stocks managed to inch higher on expectations interest rates would remain at a record low for some time.  Also, strong Chinese manufacturing and retail sales data lifted investor sentiments.  Gold prices touched an all-time high.  

The Dow Jones industrial average, which hit an intraday high of 10,341, advanced 44 points, or 0.4%, to close at 10,291.26. The S&P 500 added 6 points, or 0.5%, to close at 1,098.51, and the tech-laden Nasdaq composite rose 16 points, or 0.7%, to end the day at 2,166.90.  On the New York Stock Exchange, 19 stocks were higher in price for every 11 that declined

Nine of the ten S&P500 industry groups ended in the green, with financials (+1.3%), basic materials (+1.0%) and technology (+0.7%) leading the gainers.  Utilities

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Dan Holland has just interviewed Wall Street chronicler Charlie Gasparino’s. The first few paragraphs of the interview that appeared on RealClearMarkets are published below.

There’s good reason to believe that Gasparino’s latest book, The Sellout, will become the definitive book on the current financial crisis and the events that led up to “The Great Recession.” Spanning three decades, The Sellout pulls no punches in chronicling the rise and fall of excessive Wall Street leverage and risk taking, as well as the cast of colorful characters that ultimately brought the US financial system to its knees. It will hit bookshelves tomorrow [Tuesday].

RealClearMarkets: You sat down recently with Wall Street legend Teddy Forstmann to discuss your new book and the genesis of the mess we now find ourselves in. Forstmann said it all began as a “cold” back in the 1970s and 1980s, and that since

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The US Securities and Exchange Commission (SEC) will aggressively pursue a trial against Bank of America Corp. (BAC) for allegedly misleading investors during the acquisition of Merrill Lynch & Co. late last year. The SEC accused BofA of failing to disclose to shareholders that it had authorized Merrill to pay up to $5.8 billion in bonuses to employees in 2008 even after it lost $27.6 billion that year.

Last month, the SEC and BofA had reached a settlement on the charges that required the bank to pay a $33 million fine. But US District Judge Jed Rakoff condemned the deal, saying the corporate fine would further unfairly penalize the shareholders instead of the people actually guilty of misleading investors.

Both the SEC and BofA have defended the earlier settlement proposal as appropriate. But after Rakoff's ruling, the SEC weighed its options - to go to trial, drop the

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Traders were back on the buying table Tuesday, adding to their holdings even as they remained glued to the Fed for its take on the economy, interest rates and inflation.  Banks and industrial companies led the advance as stocks zoomed to new highs for 2009.  Nevertheless, uncertainty remained if the Central Bank will offer any detail on an exit strategy. 

The 30-share Dow Jones industrial average finished higher by 51 points, or 0.52%, at 9,829.87. The broad Standard & Poor's 500-stock index gained 7 points, or 0.66%, at 1,071.66 and the technology-laden Nasdaq composite index gained 8.26 points, or 0.39%, to 2,146.30.  Treasury prices rallied after the government’s successful auction of $43 billion in two-year notes.

Meanwhile, dollar continued its downward spiral against other major currencies, sending energy and material shares higher.  Gold and crude prices also advanced.  Gold reached $1014 per ounce, up $12.50, and oil, after a

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Morgan Stanley (NYSE: MS) Chief Executive Officer John Mack will step down and be replaced by Co-President James Gorman, who has been running the company’s brokerage and overseeing its merger with Citigroup Inc.’s (NYSE: C) Smith Barney unit.

The 64-year-old Mack will remain as Morgan’s Chairman when Gorman, 51, takes over the CEO post on January 1, the company said.

Mack came under criticism as he scaled back Morgan’s risk profile even as rivals like Goldman Sachs Group Inc. (NYSE: GS) regained momentum as the worst economic downturn since World War II began to wane, according to the Associated Press.

“Gorman has really earned his stripes,” Anton Schutz, president of Mendon Capital Advisors Corp., which owns Morgan Stanley shares, told Reuters. “He did a great job at Merrill, he’s doing a good job at Morgan Stanley, and the timing for a

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A better-than-expected jobs report helped U.S. stocks rally ahead of the long weekend but the unemployment scenario continued to remain grim, signaling the much-expected economic recovery is not going to be smooth.  Worries that the rally has gone ahead of any economic recovery continued to keep a check on sentiments and stocks declined during the first three sessions of last week.  All major indexes started off on a dull note but posted strong gains in the afternoon.          

Following advances in the overseas markets, US stocks are expected to gain at the opening.  The DJIA futures added 79 points for a gain to 9496; the S&P500 increased 9.9 points heading toward a 1023.80 open.  Markets were closed yesterday for the Labor Day holiday.

On Friday, the 30-stock Dow Jones industrial average rose 96.66 points, or 1.03%, to 9,441.27.  The S&P 500 index rose 13.16 points, or 1.31%, to 1,016.40.  The

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Bank of America Corp. (BAC) agreed to settle a class-action lawsuit against Merrill Lynch & Co. for $150 million. The lawsuit accused Merrill Lynch for misleading investors with respect to the sale of bonds and preferred stock.

The preliminary approval of the settlement, granted by US District Judge Jed Rakoff on Aug. 21, was made public yesterday.

Two Louisiana pension funds were the major applicants for the lawsuit. About 20 former Merrill executives and directors were named as defendants. The company was accused of issuing false and misleading prospectuses and registration statements in the offerings between 2006 and 2008.

Bank of America acquired Merrill Lynch on Jan. 1, creating the largest U.S. bank by assets.

We think that Bank of America is in relatively good shape from a capital perspective. During this delicate period of market stress, the availability of significant private-sector capital is very limited. As a

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At least something good has come out of the economic crisis; it blew off the purple robes that clothed economists and exposed their naked flanks. Still, they don’t deserve the beating they’re getting in the press – with snide remarks and sarcastic comments; they deserve better. A beating with sticks!

Even Alan Greenspan admitted he had “found a flaw” in his own thinking. We will have to imagine the giggles from the back of the room – if anyone had been awake. It was as if Stalin had confessed to being rude to his mother or Bernie Madoff copped a plea for shoplifting. The mea was fine, but the culpa didn’t seem to measure up to the facts. He, more than any living human being, was responsible for the biggest financial debacle in history; you’d hope he’d be a gentleman about it and hang himself.

Meanwhile, the queen of England visited

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 Goldman Sachs Would Have Collapsed If Not For Henry Paulson.

The Dow slipped a bit yesterday – only 39 points. Everyone is watching. They want to see how far this rally carries on. Many think it is more than a bear market bounce; they think it is for real.

The prevailing opinion is that quick action by the feds avoided a more serious meltdown. Ben Bernanke says he was working to prevent a “second great depression.”

And now that the crisis is past, the economy is slowly climbing out of its hole. The second quarter showed GDP falling at 1% per year in the US… rather than the 6.4% rate recorded earlier in the year. Housing sales have perked up. Oil is trading above $71 – a sign of renewed economic activity. And gold seems to be getting ready for another assault on the $1,000 mark – a sign of growing inflation pressures.

At

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