May 12, 2009 (FinancialWire) (By Philip Holmes) — Stocks ended down on Monday as it dawned on investors that we may not, in fact, be turning the corner and entering another post-oil-shock bull market cycle. Maybe it was the banks reminding them: some big ones, including US Bancorp (NYSE: USB) and BB&T Corp. (NYSE: BBT), said they were planning large stock offerings to raise enough money to get Uncle Sugar off their backs.

The Dow Jones industrial average closed at 8,418.77, down 155.88 points, while the S&P 500 index dropped 19.99 points to end the trading session at 909.24. The Nasdaq composite index lost 7.76 points for a close at 1,731.24.

Profit-taking was the order of the day, with BusinessWeek finding that “investors are starting to wonder whether the market has come too far too fast from early March lows.”

Some banks feel that they’ve gone far enough with TARP. Four U.S. banks, including U.S. Bancorp, Capital One Financial, BB&T and Bank of New York Mellon separately announced plans to sell a total of $6.55 billion of common stock. They want to buy back their TARP-related shares and get the stigma of being bailout babies off their backs.

Jonathan Stempel of Reuters reports that the banks are responding to recent government stress tests, which showed “they can weather a deep recession without new capital.”

Stock and debt sales by banks are all the rage these days. In recent days, Wells Fargo & Co and Morgan Stanley offered up a total of $12.6 billion of stock. Morgan Stanley unloaded $4 billion of debt.

Stempel finds that banks are riding the recent wave of positive investor sentiment. They’re also trying to “get while the getting is good,” as one of Stempel’s sources, Walter Todd of Greenwood Capital Associates, put it. Little green shoots or not, the banks still face trying times in an economy that has yet to show signs of a robust or sustained recovery.

The Investrend Earnings Calendar features Sport Supply Group (NASDAQ: RBI), expected at $0.26 a year ago versus $0.25 a year ago; Applied Materials (NASDAQ: AMAT), expected at $-0.1 versus $0.24 a year ago; China Digital TV (NYSE: STV), expected at $0.13 versus $0.19 a year ago; Fossil (NASDAQ: FOSL), expected at $0.16 versus $0.43 a year ago.

The Investrend Economics Calendar lists International Trade Data for March (8:30 a.m.), Weekly Chain Store Sales (8:55 a.m.), Treasury Budget Statement for April (2 p.m.).

The Investrend Events Calendar showcases ACXM, APEI at Bank of America and Merrill Lynch Education & Business Services One-on-One Forum; ARBA Analyst Meeting; ATSI Lazard Capital Markets Atrial Fibrillation Day Conference; BEAV at Credit Suisse Group Aerospace & Defense Conference; CAT, BEZ at UBS Industrials Conference; DNDN, JNJ, MYGN, SYK at Bank of America Securities Healthcare Conference; FMC Credit Suisse Group Basic Materials Conference; INTC Analyst Meeting; MMM Annual Shareholders Meeting; MNKD, XOMA, NXTM, PODD at CanaccordAdams Diabetes & Obesity Conference; NTRS, ALL, BK, ZION, KEY at UBS Global Financial Services Conference; NVO at Merill Lynch Annual Global Pharmaceutical Biotechnology & Medical Device Conference; PRU Shareholders Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 21 advancers versus 28 decliners and one unchanged. Advancers were led by Cell Therapeutics, Inc. (NASDAQ: CTIC) up 40.87%, Ucbh Holdings, Inc. (NASDAQ: UCBH) up 27.32%, Delta Petroleum Corporation (NASDAQ: DPTR) up 16.56%, Financial Bear 3x (NYSE: FAZ) up 14.25%, Ultrashort Financial (NYSE: SKF) up 10.07%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 9.81%, Ambac Finl Grp Inc (NYSE: ABK) up 8.70%, Ultrashort Real Esta (NYSE: SRS) up 7.53%. Decliners followed Financial Bull 3x (NYSE: FAS) down 16.17%, Dryships Inc. (NASDAQ: DRYS) down 15.12%, Capital One Financia (NYSE: COF) down 13.53%, Gen Motors (NYSE: GM) down 10.56%, Ultra Financials Pro (NYSE: UYG) down 10.55%, Us Bancorp (NYSE: USB) down 9.93%, E*Trade Financial Corporation (NASDAQ: ETFC) down 9.64%, Regions Financial Cp (NYSE: RF) down 9.34%, Bk Of America Cp (NYSE: BAC) down 8.68%, Jp Morgan Chase Co (NYSE: JPM) down 7.99%, Morgan Stanley (NYSE: MS) down 7.55%, Ultra Real Estate Pr (NYSE: URE) down 7.21%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: https://donotcall.gov/

Quote of the Day: “I’m not concerned about all hell breaking loose, but that a PART of hell will break loose… it’ll be much harder to detect.” George Carlin

Today is: Limerick Day

Happy Birthday: Florence Nightingale, Henry Cabot Lodge, Katharine Hepburn, Howard K. Smith, Farley Mowat, Yogi Berra, Burt Bacharach, George Carlin, Steve Winwood, Bruce Boxleitner, Billy Squier, Kix Brooks, Emilio Estevez, Vanessa A. Williams, Stephen Baldwin, Tony Hawk, Mike Weir, Jim Furyk, Jason Biggs.

Today in History: National University of San Marcos, the oldest university in the Americas, was founded in 1551 in Lima, Peru. The Soviet spacecraft Luna 5 crashed on the Moon in 1965. At Queen Elizabeth Hall, England, Pink Floyd staged the first-ever quadraphonic rock concert in 1967. Ernie Banks became the ninth member of the 500 home run club with a home run at Wrigley Field in Chicago, Illinois, in 1970. Former President Jimmy Carter arrived in Cuba in 2002 for a five-day visit with Fidel Castro becoming first President of the United States, in or out of office, to visit the island since Castro’s 1959 revolution.

[FirstAlert^TM was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert^TM do not necessarily reflect the opinions of Investrend.]

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