Wall Street ends lower after volatile session
May 11, 2010
Wall Street followed up its best day in 14 months with a volatile session that finished lower Tuesday as caution remained over the ongoing debt saga in Europe. On Monday the market welcomed Europe’s US$1 trillion rescue package, however questions as to whether or not it is simply a band-aid solution.
Yesterday, Greece requested US$18.4 billion in funds from the EU and is scheduled to receive US$7 billion from the IMF on Wednesday. This means the troubled nation will be able to meet the May 19 deadline to pay back approximately US$11 billion in debt.
In US economic news, the Commerce Department reported a 0.4% increase during wholesale inventories during in March. Forecasts were for a 0.5% rise.
The Dow Jones shed 36.88 points, or 0.34%, to 10,748.26, the S&P's 500 dipped 3.94 points, or 0.34%, to 1,155.79 and the NASDAQ added 0.64 points, or 0.03%, to 2,375.31.
Financials struggled amid the uncertainty surrounding the euro zone debt crisis. Goldman Sachs and Citigroup dropped 1.3% and 1.2%, while the remainder of the heavyweights were within 1% below the gain line.
Insurer American International Group jumped 4.7%.
It was a mixed day for the tech sector. Search engine Google fell 2.4%, while Hewlett-Packard shed 1.4%.
Apple rose 1%, while software company Novell climbed 6.3%.
Merck & Co. lost 2.2% after the healthcare company supported a full-year earnings guidance that missed estimates.
Exxon Mobil and Chevron tracked the price of crude lower by weakening 0.5% and 0.2%.
ConocoPhillips bucked the trend to add 1.1%.
NYMEX light crude oil for June delivery settled down US43c to US$76.37 a barrel.
COMEX gold for June delivery rose US$19.50 to settle at a record high of US$1,220.30 an ounce.
European Markets
The vast majority of European markets lost ground as doubts the rescue package announced over the weekend will serve as a long-term solution. Banks led falls, while resource stocks tracked metals prices lower.
Some uncertainty in the UK market has now been removed, with the Conservatives and Liberal Democrats agreeing to form a majority coalition government in the UK.
The UK benchmark FTSE 100 lost 53.21, or 0.99% to 5,334.21. The French CAC40 slid 27.09, or 0.73% to 3,693.20, while the German DAX added 19.80, or 0.33% to 6,037.71.
Among the UK banks Royal Bank of Scotland dropped 3.4%, while HSBC and Barclays shed 1.5% and 1.3%.
BNP Paribas and Societe Generale lost 2.3% and 2%.
Deutsche Bank gained 0.9%.
BHP Billiton and Rio Tinto weakened 1.7% and 2.1% as China’s government was placed under pressure to tighten monetary policy due to accelerating inflation.
German steelmaker Salzgitter fell 1.9% as UBS downgraded its rating on the stock from ‘buy’ to ‘sell’.
Energy company BG Group shed 1.5%.
Solarworld slumped 7.3% after the solar-panel maker reported a drop in first-quarter EBIT.
The German market was led higher by Siemens and Daimler. Siemens rose 2%, while Daimler put on 1.7% after the automaker said it was heading towards a significant increase in second-quarter sales.
Japanese Markets
The Japanese market fell on concerns over the capital strength of the banks, while Chinese inflation figures also raised the prospect of higher interest rates in that country.
The Nikkei 225 gave up 119.60, or 1.14% to 10,411.10.
Mizuho Financial, Japan’s third largest bank, was easily the most traded stock on the Nikkei, dropping 2.3% on concerns it would sell more shares to raise equity.
Number one bank Mitsubishi UFJ retreated 1.7%, with Sumitomo Mitsui Financial Group, the second largest, slumping 3.6% after reports emerged it would double its share issuance limit.
Consumer electronics were heavily hit. Hitachi and Toshiba slumped 3.3% and 4.4% respectively.
Sony dipped 1.4%, while Panasonic lost 2.5%.
Commodity trader, Mitsubishi Corp, fell 2.5% to five-month lows.
Shippers, Mitsui O.S.K. Lines and Kawasaki Kisen shed 2.3% and 1.6% respectively.
Clothing manufacturer Look Inc surged more than 27%.
Hong Kong Markets
The Hang Seng fell away as investors focused on Chinese economic figures out Tuesday. While the economy wasn’t overheating, inflation hit 18-month highs, increasing the prospect of the government moving to reign in economic growth.
The Hang Seng shed 280.13, or 1.37% to 20,146.51.
Property stocks, which were heavily sold last month on the prospect of a housing bubble, were hit by a fresh round of selling, with data out showing house prices were nearly 13% higher than a year ago.
State controlled China Resources Land shed 2.3%, while Guangzhou R&F Properties, the largest developer in Southern China, shed 4.7%.
Among the banks, ICBC lost 1.4%, while Bank of China retreated 1.3%. HSBC, which makes up around one-sixth of the Hang Seng, lost 1.9%.
Shipper Cosco Pacific continues to be hit from it recent exposure to the Greek shipping business. Its shares fell 3.5%.
Cathay Pacific, Hong Kong’s airline, rallied 2.6% on a strong result.
However Chinese airlines slumped. China Eastern Airlines and China Southern Airlines dropped 6.4% and 2.8% respectively.
Clothing maker Li & Fung shed 1.5%, while the world’s largest mobile phone maker, Foxconn International jumped 2.7%.
In oil plays, Cnooc rose 1.2%, while PetroChina was 1.7% weaker.
Yesterday, Greece requested US$18.4 billion in funds from the EU and is scheduled to receive US$7 billion from the IMF on Wednesday. This means the troubled nation will be able to meet the May 19 deadline to pay back approximately US$11 billion in debt.
In US economic news, the Commerce Department reported a 0.4% increase during wholesale inventories during in March. Forecasts were for a 0.5% rise.
The Dow Jones shed 36.88 points, or 0.34%, to 10,748.26, the S&P's 500 dipped 3.94 points, or 0.34%, to 1,155.79 and the NASDAQ added 0.64 points, or 0.03%, to 2,375.31.
Financials struggled amid the uncertainty surrounding the euro zone debt crisis. Goldman Sachs and Citigroup dropped 1.3% and 1.2%, while the remainder of the heavyweights were within 1% below the gain line.
Insurer American International Group jumped 4.7%.
It was a mixed day for the tech sector. Search engine Google fell 2.4%, while Hewlett-Packard shed 1.4%.
Apple rose 1%, while software company Novell climbed 6.3%.
Merck & Co. lost 2.2% after the healthcare company supported a full-year earnings guidance that missed estimates.
Exxon Mobil and Chevron tracked the price of crude lower by weakening 0.5% and 0.2%.
ConocoPhillips bucked the trend to add 1.1%.
NYMEX light crude oil for June delivery settled down US43c to US$76.37 a barrel.
COMEX gold for June delivery rose US$19.50 to settle at a record high of US$1,220.30 an ounce.
European Markets
The vast majority of European markets lost ground as doubts the rescue package announced over the weekend will serve as a long-term solution. Banks led falls, while resource stocks tracked metals prices lower.
Some uncertainty in the UK market has now been removed, with the Conservatives and Liberal Democrats agreeing to form a majority coalition government in the UK.
The UK benchmark FTSE 100 lost 53.21, or 0.99% to 5,334.21. The French CAC40 slid 27.09, or 0.73% to 3,693.20, while the German DAX added 19.80, or 0.33% to 6,037.71.
Among the UK banks Royal Bank of Scotland dropped 3.4%, while HSBC and Barclays shed 1.5% and 1.3%.
BNP Paribas and Societe Generale lost 2.3% and 2%.
Deutsche Bank gained 0.9%.
BHP Billiton and Rio Tinto weakened 1.7% and 2.1% as China’s government was placed under pressure to tighten monetary policy due to accelerating inflation.
German steelmaker Salzgitter fell 1.9% as UBS downgraded its rating on the stock from ‘buy’ to ‘sell’.
Energy company BG Group shed 1.5%.
Solarworld slumped 7.3% after the solar-panel maker reported a drop in first-quarter EBIT.
The German market was led higher by Siemens and Daimler. Siemens rose 2%, while Daimler put on 1.7% after the automaker said it was heading towards a significant increase in second-quarter sales.
Japanese Markets
The Japanese market fell on concerns over the capital strength of the banks, while Chinese inflation figures also raised the prospect of higher interest rates in that country.
The Nikkei 225 gave up 119.60, or 1.14% to 10,411.10.
Mizuho Financial, Japan’s third largest bank, was easily the most traded stock on the Nikkei, dropping 2.3% on concerns it would sell more shares to raise equity.
Number one bank Mitsubishi UFJ retreated 1.7%, with Sumitomo Mitsui Financial Group, the second largest, slumping 3.6% after reports emerged it would double its share issuance limit.
Consumer electronics were heavily hit. Hitachi and Toshiba slumped 3.3% and 4.4% respectively.
Sony dipped 1.4%, while Panasonic lost 2.5%.
Commodity trader, Mitsubishi Corp, fell 2.5% to five-month lows.
Shippers, Mitsui O.S.K. Lines and Kawasaki Kisen shed 2.3% and 1.6% respectively.
Clothing manufacturer Look Inc surged more than 27%.
Hong Kong Markets
The Hang Seng fell away as investors focused on Chinese economic figures out Tuesday. While the economy wasn’t overheating, inflation hit 18-month highs, increasing the prospect of the government moving to reign in economic growth.
The Hang Seng shed 280.13, or 1.37% to 20,146.51.
Property stocks, which were heavily sold last month on the prospect of a housing bubble, were hit by a fresh round of selling, with data out showing house prices were nearly 13% higher than a year ago.
State controlled China Resources Land shed 2.3%, while Guangzhou R&F Properties, the largest developer in Southern China, shed 4.7%.
Among the banks, ICBC lost 1.4%, while Bank of China retreated 1.3%. HSBC, which makes up around one-sixth of the Hang Seng, lost 1.9%.
Shipper Cosco Pacific continues to be hit from it recent exposure to the Greek shipping business. Its shares fell 3.5%.
Cathay Pacific, Hong Kong’s airline, rallied 2.6% on a strong result.
However Chinese airlines slumped. China Eastern Airlines and China Southern Airlines dropped 6.4% and 2.8% respectively.
Clothing maker Li & Fung shed 1.5%, while the world’s largest mobile phone maker, Foxconn International jumped 2.7%.
In oil plays, Cnooc rose 1.2%, while PetroChina was 1.7% weaker.
Leave a Reply