The Week Ahead: The GDP slipped 6.2% last quarter. Taxpayers now own 36% of Citigroup with the government's $25 billion conversion of preferred stock to common. General Electric cut its dividend and consumer sentiment dropped again in February. An assortment of economic reports to contend with include personal income and construction spending on Monday, auto sales on Tuesday, factory orders on Thursday, and another worrisome unemployment report on Friday. Also, watch Ben Bernanke's testimony to Congress on Wednesday.Stocks to Watch: Standard & Poors cut counter party credit and financial strength ratings on life insurance companies including Lincoln Financial (LNC) Conseco (CNO), and Protective Life Corp. (PL). Shares of Republic Services (RSG) fell to a multi-month low after a Q4 loss was attributed to the cost of acquiring Allied Waste Corp. A 50% cut in the dividend of Packaging Corp. of America (PKG) was blamed for the stocks drop to 9 year lows. Shares of Petrohawk Energy (HK) were hit on news of a planned 22 million share offering.Special Note: The Dow Industrials are poised to reach the 6000's for the first time since 1997 on news the government will inject $30 billion in a revised bailout into the "too big to fail" American International Group which is now a penny stock and a former member of the DOW just last year. It seems the markets are building a head of steam to the downside in what could be a washout low later this month or April. If this occurs, the major indexes are poised for there biggest bounce since the peak in '07.Commentary provided by Barry ward, Registered Principal, NobleTrading.com, Inc.
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