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Stocks Down On GM Concerns & Jobs
01 Apr 2009 EDT - CNBC.com
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Late evening reports that President Obama has concluded bankruptcy for GM is the most likely course of action (apparently leaked by Congressional members) was no surprise to most traders in GM and analysts, who had come to that conclusion on Monday.

The tipoff was when the Obama administration indicated they would guarantee the warranties of cars sold by GM and Chrysler; there was no reason to do this if bankruptcy was not an option. Still, it is certainly a political surprise coming from a man who was elected with strong union support.

Elsewhere:

1) Futures dropped about 5 points on the ADP jobs report, which indicated that the private sector shed 742,000 jobs in March, more than consensus of a decline of 663,000, while February was revised downward by an additional 9,000 jobs.

2) The Financial Accounting Standards Board (FASB) begins debate on mark-to-market accounting today, and will vote on any changes tomorrow.

Remember, while the FASB is a private organization, the SEC has designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S., so this vote does matter.

2) Even though mortgage rates continue to fall (4.61 percent for a 30-year fixed rate mortage), and refinancing activity is strong, applications for a mortgage to purchase a home are not rising significantly--up only 0.1 percent from the week before, according to the MBA.

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