The stock rally that wasnt

By Paul R. La Monica, CNNMoney
2009-2-23 13:54:56

NEW YORK (CNNMoney.com) -- It looks like the government isn't going to let Citigroup fail. But that wasn't enough to save the market Monday.

At first, it looked like an explosive rally in Citi (C, Fortune 500) and other bank stocks was going to lead to a jubilant day for stocks, a Wall Street equivalent of the celebratory "Slumdog Millionaire" musical number on the Academy Awards. The Dow shot up about 75 points shortly after the market opened. Jai ho!

But the rally was short-lived. The overall market fell more than 3% by the end of the day, even though the S&P Bank Index had gained more than 2%, led by a 3% pop in Bank of America (BAC, Fortune 500) and 10% gain in shares of Citi.

What gives? Well, for one, the Citi news isn't really so great. The government may save Citi from complete collapse...but probably at the expense of existing shareholders.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	The stock rally that wasnt By Paul R. La Monica, CNNMoney 2009-2-23 13:54:56 NEW YORK (CNNMoney.com) -- It looks like the government isn't going to let Citigroup fail. But that wasn't enough to save the market Monday. At first, it looked like an explosive rally in Citi (C, Fortune 500) and other bank stocks was going to lead to a jubilant day for stocks, a Wall Street equivalent of the celebratory "Slumdog Millionaire" musical number on the Academy Awards. The Dow shot up about 75 points shortly after the market opened. Jai ho! But the rally was short-lived. The overall market fell more than 3% by the end of the day, even though the S&P Bank Index had gained more than 2%, led by a 3% pop in Bank of America (BAC, Fortune 500) and 10% gain in shares of Citi. What gives? Well, for one, the Citi news isn't really so great. The government may save Citi from complete collapse...but probably at the expense of existing shareholders.