Another triple digit fall for Wall Street
June 24, 2010
Wall Street slumped Thursday as investors digested mixed economic reports over the last couple of days and after the Fed downgraded its economic outlook. Financial and energy plays were the major drags.
In economic news, new unemployment claims declined from a revised 472,000 in the previous week to 457,000 last week, to be in line with forecasts. Continuing claims fell to a better than anticipated 4,548,000.
Meanwhile, durable goods orders dropped a better than expected 1.1% in May after a 3% rise the previous month.
According to Freddie Mac the average rate for 30-year fixed loans fell from 4.75% to 4.69%. This was the lowest level on record.
The Dow Jones dropped 45.64 points, or 1.41%, to 10,152.80, the S&P's 500 shed 18.35 points, or 1.68%, to 1,073.69 and the NASDAQ fell 36.81 points, or 1.63%, to 2,217.42.
Bank of America, Citigroup and JPMorgan lost between 2.2% and 2.8% as the White House moved closer to reaching a compromise on the the financial regulatory reform bill.
Morgan Stanley slumped 3.1%.
Apple dipped 0.8% as thousands of people lined up for its iPhone 4, which was released Thursday.
Tech heavyweights Microsoft and IBM lost 1.2% and 1.5%, while Oracle shed 2% ahead of the release of its quarterly report after the close.
Search engines Google and Yahoo! fell 1.4% and 2.6%.
Google won a copyright infringement dispute with Viacom, ruling that Google’s YouTube isn't liable for its users' copyright violations. Viacom was seeking over US$1 billion in damages and said it would appeal.
Viacom shares retreated 2.9%.
Economically sensitive Dow components Alcoa and Caterpillar shed 2.8% and 1.5%.
Energy majors Exxon Mobil and Chevron were among the biggest losers, down 1.7% and 2% respectively.
NYMEX light crude oil for August delivery rose US9c to US$76.44 a barrel.
COMEX gold for August delivery gained US$11.30 to US$1,246.10 an ounce.
European Markets
European stocks closed at a two-week low on concerns related to the financial reform bill set to be released in the US shortly. Ongoing doubts over a global economic recovery also plagued the market.
The UK benchmark FTSE 100 retreated 78.29, or 1.51% to 5,100.23. The French CAC40 lost 86.43, or 2.37% to 3,555.36, while the German DAX fell 89.04, or 1.44% to 6,115.48.
UK banks Barclays, Lloyds and Royal Bank of Scotland dropped 4.6%, 4.1% and 3.3% respectively.
Societe Generale and BNP Paribas tumbled 4.5% and 5%. Deutsche Bank lost 1.6%.
The cost of protecting Greek government debt against default increased to a record high.
Greece’s Eurobank slumped 5.2%, while in the equally fragile Spain Banco Santander weakened 3.8%.
Miners lost ground as an uncertain outlook for metals demand easily offset the appointment of Julia Gillard as the new Prime Minister of Australia. Ms Gillard’s promotion to the top job created optimism the government and miners will be able to reach a compromise over the Resource Super Profits Tax.
Aussie miners BHP Billiton and Rio Tinto dipped 1.6% and 3.2%.
Xstrata was also down 3.2%.
Beleaguered energy giant BP continued its slide, closing 2.5% in the red. BG Group and Royal Dutch Shell shed 2.7% and 1.7%.
Japanese Markets
Japan’s Nikkei closed flat as gains from real-estate companies were countered by losses from exporters. The index had lost 3% in the previous two sessions.
The Nikkei 225 added 4.64, or 0.05% to 9,928.34.
Automakers Nissan and Toyota weakened 1.2% and 0.8% as the yen strengthened against the greenback.
Sony and Panasonic closed 1.1% and 1% cheaper, while Canon bucked the trend adding 0.4%.
Property developer Sumitomo Realty & Development rallied 2.9% after a drop in bond yields indicated lower loan rates. Mitsui Fudosan Co. and Mitsubishi Estate Co. rose 1.6% and 0.8%.
Financials Mitsubishi UFJ and Mizuho retreated 1.6% and 1.3%.
Hong Kong Markets
The Hang Seng retreated Thursday as a raft of international data, including weak US housing reads, rattled investors. Meanwhile, some analysts in China consider the recent strong lending has increased risk across that sector, hurting shares in many of the banks.
The Hang Seng fell 123.12, or 0.59% to 20,733.49.
Among the banks, heavyweight lender ICBC lost 0.5%, while Bank of China was 0.2% weaker.
HSBC, which makes up around one-sixth of the Hang Seng index, sank 1.6%.
Li & Fung put on 0.3%, while the world’s largest third party shoemaker, Yue Yuen Holdings, added 1.8%.
Property stocks climbed despite the US Federal Reserve kept interest rates on hold again.
China Resources Land added 0.1%, while Guangzhou R&F Properties retreated 2%.
Among the oil stocks, Cnooc and PetroChina retreated 1.9% and 1.1% respectively.
In economic news, new unemployment claims declined from a revised 472,000 in the previous week to 457,000 last week, to be in line with forecasts. Continuing claims fell to a better than anticipated 4,548,000.
Meanwhile, durable goods orders dropped a better than expected 1.1% in May after a 3% rise the previous month.
According to Freddie Mac the average rate for 30-year fixed loans fell from 4.75% to 4.69%. This was the lowest level on record.
The Dow Jones dropped 45.64 points, or 1.41%, to 10,152.80, the S&P's 500 shed 18.35 points, or 1.68%, to 1,073.69 and the NASDAQ fell 36.81 points, or 1.63%, to 2,217.42.
Bank of America, Citigroup and JPMorgan lost between 2.2% and 2.8% as the White House moved closer to reaching a compromise on the the financial regulatory reform bill.
Morgan Stanley slumped 3.1%.
Apple dipped 0.8% as thousands of people lined up for its iPhone 4, which was released Thursday.
Tech heavyweights Microsoft and IBM lost 1.2% and 1.5%, while Oracle shed 2% ahead of the release of its quarterly report after the close.
Search engines Google and Yahoo! fell 1.4% and 2.6%.
Google won a copyright infringement dispute with Viacom, ruling that Google’s YouTube isn't liable for its users' copyright violations. Viacom was seeking over US$1 billion in damages and said it would appeal.
Viacom shares retreated 2.9%.
Economically sensitive Dow components Alcoa and Caterpillar shed 2.8% and 1.5%.
Energy majors Exxon Mobil and Chevron were among the biggest losers, down 1.7% and 2% respectively.
NYMEX light crude oil for August delivery rose US9c to US$76.44 a barrel.
COMEX gold for August delivery gained US$11.30 to US$1,246.10 an ounce.
European Markets
European stocks closed at a two-week low on concerns related to the financial reform bill set to be released in the US shortly. Ongoing doubts over a global economic recovery also plagued the market.
The UK benchmark FTSE 100 retreated 78.29, or 1.51% to 5,100.23. The French CAC40 lost 86.43, or 2.37% to 3,555.36, while the German DAX fell 89.04, or 1.44% to 6,115.48.
UK banks Barclays, Lloyds and Royal Bank of Scotland dropped 4.6%, 4.1% and 3.3% respectively.
Societe Generale and BNP Paribas tumbled 4.5% and 5%. Deutsche Bank lost 1.6%.
The cost of protecting Greek government debt against default increased to a record high.
Greece’s Eurobank slumped 5.2%, while in the equally fragile Spain Banco Santander weakened 3.8%.
Miners lost ground as an uncertain outlook for metals demand easily offset the appointment of Julia Gillard as the new Prime Minister of Australia. Ms Gillard’s promotion to the top job created optimism the government and miners will be able to reach a compromise over the Resource Super Profits Tax.
Aussie miners BHP Billiton and Rio Tinto dipped 1.6% and 3.2%.
Xstrata was also down 3.2%.
Beleaguered energy giant BP continued its slide, closing 2.5% in the red. BG Group and Royal Dutch Shell shed 2.7% and 1.7%.
Japanese Markets
Japan’s Nikkei closed flat as gains from real-estate companies were countered by losses from exporters. The index had lost 3% in the previous two sessions.
The Nikkei 225 added 4.64, or 0.05% to 9,928.34.
Automakers Nissan and Toyota weakened 1.2% and 0.8% as the yen strengthened against the greenback.
Sony and Panasonic closed 1.1% and 1% cheaper, while Canon bucked the trend adding 0.4%.
Property developer Sumitomo Realty & Development rallied 2.9% after a drop in bond yields indicated lower loan rates. Mitsui Fudosan Co. and Mitsubishi Estate Co. rose 1.6% and 0.8%.
Financials Mitsubishi UFJ and Mizuho retreated 1.6% and 1.3%.
Hong Kong Markets
The Hang Seng retreated Thursday as a raft of international data, including weak US housing reads, rattled investors. Meanwhile, some analysts in China consider the recent strong lending has increased risk across that sector, hurting shares in many of the banks.
The Hang Seng fell 123.12, or 0.59% to 20,733.49.
Among the banks, heavyweight lender ICBC lost 0.5%, while Bank of China was 0.2% weaker.
HSBC, which makes up around one-sixth of the Hang Seng index, sank 1.6%.
Li & Fung put on 0.3%, while the world’s largest third party shoemaker, Yue Yuen Holdings, added 1.8%.
Property stocks climbed despite the US Federal Reserve kept interest rates on hold again.
China Resources Land added 0.1%, while Guangzhou R&F Properties retreated 2%.
Among the oil stocks, Cnooc and PetroChina retreated 1.9% and 1.1% respectively.
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