The US stock markets tumbled on Friday, with the Dow Jones Industrial Average ended at lowest closing level since 2002 on fears that the government would nationalize some big banks to curtail the financial gloom. However, later in the session the markets managed to recover from the day’s lows, with the financial sector rallied all the way back into positive ground after word surfaced from the White House that the Obama administration believes the correct way to run the bank system is through private ownership and not through nationalization of banks. However, uncertainty still persists about how the government will rescue ailing banks.
Bank of America shares managed to regain most of its losses after it plunged nearly 36%, after its CEO Kenneth Lewis defended the company''s health and said that the bank can survive on its own.
On the earnings front, Lowe''s reported earnings that fell short of estimates and also issued downside guidance. Another retailer, JC Penney beat earnings estimates as it reported higher-than-expected earnings but forecast a current-quarter loss that is bigger than what analysts are expecting.
On the economic front, the January CPI was up 0.3%, in-line with expectations, while core CPI was up 0.2% versus the consensus estimate that called for a 0.1% increase.
The Dow Jones Industrial Average (DJIA) dropped by 100.28 points to close at 7,365.67. The NASDAQ Composite (RIXF) index decreased by 1.59 points to close at 1,441.23 and the S&P 500 (SPX) fell by 8.89 points to close at 770.05.
Among the Dow’s 30 components, 24 of its components ended in red mainly led by the stocks like Citigroup, General Motors, Bank of America and JP Morgan Chase down by 22.31%, 11.50%, 3.56% and 3.40% respectively.
US light crude oil for March delivery fell by $0.54 to settle at $38.94 a barrel on the New York Mercantile Exchange. The March contract got expire on Friday. The crude prices fell despite a fall in crude supplies last week in the world''s largest consuming country and lower OPEC production.
COMEX gold for April delivery rose USD25.70 to settle at US$1,002.20 an ounce, near an all-time high. It earlier touched a high of US$1,007.70. source: livemint.com
Bank of America shares managed to regain most of its losses after it plunged nearly 36%, after its CEO Kenneth Lewis defended the company''s health and said that the bank can survive on its own.
On the earnings front, Lowe''s reported earnings that fell short of estimates and also issued downside guidance. Another retailer, JC Penney beat earnings estimates as it reported higher-than-expected earnings but forecast a current-quarter loss that is bigger than what analysts are expecting.
On the economic front, the January CPI was up 0.3%, in-line with expectations, while core CPI was up 0.2% versus the consensus estimate that called for a 0.1% increase.
The Dow Jones Industrial Average (DJIA) dropped by 100.28 points to close at 7,365.67. The NASDAQ Composite (RIXF) index decreased by 1.59 points to close at 1,441.23 and the S&P 500 (SPX) fell by 8.89 points to close at 770.05.
Among the Dow’s 30 components, 24 of its components ended in red mainly led by the stocks like Citigroup, General Motors, Bank of America and JP Morgan Chase down by 22.31%, 11.50%, 3.56% and 3.40% respectively.
US light crude oil for March delivery fell by $0.54 to settle at $38.94 a barrel on the New York Mercantile Exchange. The March contract got expire on Friday. The crude prices fell despite a fall in crude supplies last week in the world''s largest consuming country and lower OPEC production.
COMEX gold for April delivery rose USD25.70 to settle at US$1,002.20 an ounce, near an all-time high. It earlier touched a high of US$1,007.70. source: livemint.com
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