Zacks Analyst Interview Highlights: Citigroup, Washington Mutual, Moody's and Morgan Stanley

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2678.

Charles, the markets ended last week with two days of selling. Can you comment on it?

Thursday's big drop was notable because volume was not impressive. In other words, the trading activity resembled more of a buyer's strike than the onset of fear.

Friday was different with more than 5.8 billion shares exchanging hands on the NYSE. Volume among several of the big financial companies, such as Citigroup (NYSE: C | Quote | Chart | News | PowerRating) and Washington Mutual (NYSE: WM), was far above average. Moody's (NYSE: MCO | Quote | Chart | News | PowerRating) warned that it might downgrade Morgan Stanley (NYSE: MS), and that only intensified fears about worsening problems in the financial sectors.

How much a factor was oil?

It was a big factor. Crude ended the week at $140.21 after nearly crossing above $143 per barrel. Libya threatened to cut production and speculators are looking at oil as one of the few ways to make to money by going long in this market. Obviously, higher oil prices are bad for transportation companies and for consumers. AAA was widely quoted as predicting fewer people would drive over the Fourth of July Weekend.

At some point, oil will pull back sharply in price. However, as the case with any bubble, it is impossible to say how oil will rise before it finally drops.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks Profit from the Pros e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com Mark Vickery Zacks Web Content Editor 312-265-9380 Visit: www.zacks.com