Stocks Drop on Alcoa Downer, Bernanke Calls for More Bailout

Bernanke sounds all pessimistic
By Kevin Spak,  Newser Staff
Posted Jan 13, 2009 8:48 AM CST
Bank of America specialist Daniel O'Donnell, left, talks to trader Peter Tuchman on the floor of the New York Stock Exchange, Wednesday, Jan. 7, 2009 in New York.   (AP Photo/Henny Ray Abrams)
camera-icon View 3 more images

(Newser) – Stocks took a modest drop at the open, in the wake of a grim report from Alcoa and even grimmer words from Ben Bernanke, who said the strength and timing of the global recovery are “highly uncertain,” and that Obama’s stimulus won’t produce sustainable results without more help for banks. The Dow dropped 34 at the open, while the S&P and Nasdaq fell 0.6% and 0.3% respectively. 

If they don’t turn around, it’ll mark the fifth straight day of decline, the Wall Street Journal reports. Alcoa kicked off earnings season last night, reporting a $1.2 billion loss. Shares dropped 5% in early trading. Citi’s shares dropped 9% on earnings fears, while Bank of America fell 4%.