Citi beats forecasts with $101 million profit
NEW YORK (AFP): Struggling banking giant Citigroup topped expectations last week, posting a third-quarter profit of 101 million dollars. Because of special dividends required from a massive government bailout, the results amounted to a loss for shareholders of 27 cents per share. But that was better than the expected loss of 38 cents per share. Citigroup has received some 45 billion dollars in capital from the US Treasury to shore up its finances, some of which has been converted to common stock.
That has given the government a stake of 34 percent in what was once the world’s biggest financial group, which is now working to slim down and repay the government.
“We continue to execute steadily against our plan, and sustainable profitability remains our primary goal in the near term,” said Vikram Pandit, chief executive. “While consumer credit trends are improving in international markets, the US consumer credit environment remains challenging.”
Dow 10K good for psyche, but is that all?
NEW YORK (Reuters): The Dow Jones industrial average topped 10,000 for the first time in a year last week, piercing a level major investors see as merely psychological but which may serve as a buying signal to retail stock pickers. The milestone points to the resiliency of the market’s runup since the lows of early March and growing comfort with the economy’s path. But investors warned that it could serve as a trap, something that galvanizes interest from regular investors while institutions pare back positions.