Stocks Flat Despite WaMu Deal

Investors worry about bad news in coming earnings reports
By Nick McMaster,  Newser Staff
Posted Apr 7, 2008 3:36 PM CDT
Traders Marshall Ryan, center, and Thomas Kay, right, trading on New York Stock Exchange, Monday, April 7, 2008.    (AP Photo/Richard Drew)
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(Newser) – Stocks were flat today after worries about coming first-quarter earnings reports kept a financial stocks rally from taking hold, MarketWatch reports. The Dow rose 3.01 to 12,612.42; the S&P 500 rose 2.14 to 1,372.54; and the Nasdaq was off 6.15 to close at 2,364.83.

Financials rallied after a group of investors led by TPG announced they were considering a $5 billion investment in Washington Mutual, the largest American savings and loan. WaMu is desperate for cash after losing $3 billion in mortgage-related writedowns. Though WaMu stock surged, investors stayed cautious, with a nervous eye toward Alcoa's Q1 earnings report, due after today's close.