"Who Cares?" Gershwin. On Nov 19, 6:33�pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Dow slumps below 8000 > > US stocks sank and benchmark indexes slid to their lowest levels since > 2003 on growing concern over the health of the financial system and > survival of the nation's car industry. > > Citigroup tumbled 23% to $US6.40, a 13-year low, on a plan to buy > $US17.4 billion of troubled investment-fund assets. General Motors > slid 9.7% to its lowest price since the 1940s, while Ford lost 25%. > Fourteen companies in the Standard & Poor's 500 Index fell 20% or more > as government data signaled the recession is deepening and > expectations grew that insurers will post more investment losses. > > ''Hideous day,'' said Bill Stone, who oversees $US56 billion as chief > investment strategist at PNC Wealth Management in Philadelphia. ''It's > hard to put a basement on this thing.'' > > The S&P 500 plunged 6.1% to 806.58 and extended its 2008 retreat to > 45%, poised for its worst year since 1931. The Dow Jones Industrial > Average lost 427.47 points, or 5.1%, to 7997.28. The Nasdaq Composite > Index decreased 6.5% to 1386.42. Thirty stocks fell for each that rose > on the New York Stock Exchange, where 1.6 billion shares changed > hands, 8.6% more than the three-month average. > > The retreat in the US followed declines in Europe and Asia as concern > mounted the economic slowdown will cut profits at financial firms and > commodity producers. Federal Reserve policy makers last month > predicted the US economy will contract through the middle of 2009, > with some prepared to cut interest rates further in response, > according to a record of their meeting released today. > > Stocks Slide, Bonds Gain > > Both the Dow and the S&P 500 retreated to their lowest levels since > March 2003, while the Nasdaq slid to its lowest since April of that > year. > > Treasuries rose, led by longer-term securities, as investors sought > the relative safety of government debt following the biggest drop in > consumer prices on record. The difference between yields on 10-year > Treasury Inflation Protected Securities and conventional notes, which > reflects the outlook for consumer prices, was 38 basis points, near > the least since Bloomberg began tracking the data in 1998. > > Citigroup, which was surpassed by US Bancorp as the nation's fourth- > largest bank by market value, retreated to its lowest price since > 1995, three years before Citicorp's merger with Sanford ''Sandy'' > Weill's Travelers Group. > > SIV Slump > > Citigroup said the value of the assets it agreed to buy from > structured investment vehicles it advises fell from $US21.5 billion as > of September 30, reflecting market declines of $US1.1 billion and $US3 > billion in debt that matured or was sold. SIVs, which Citigroup > invented in 1988, emerged 15 months ago as one of the first major > strains in credit markets rocked by record high foreclosures on > subprime mortgages. > > Bank of America, the lender that's buying Merrill Lynch, dropped > $US2.13, or 14%, to $US13.06. Goldman Sachs dropped $US6.85, or 11%, > to $US55.18, the lowest close since the company's initial public > offering in 1999. > > The S&P 500 Financials Index tumbled 12% to a 13- year low as all 84 > of its companies retreated. JPMorgan Chase, the biggest US bank by > market value, lost $US3.67, or 11%, to $US28.47, its lowest closing > price since 2003. > > Lincoln National plunged 40%, the steepest decline in the S&P 500, to > $US7.31. The Philadelphia-based life insurer said it expects a charge > of as much as $US300 million because of declining equity markets last > month. Insurers in the S&P 500 lost 11% collectively. > > Even Buffett > > Warren Buffett's Berkshire Hathaway, which owns the insurers Geico > Corp. and General Re, dropped 12% to $US84,000 for its steepest plunge > since at least 1985. > > Homebuilders across S&P indexes tumbled 11% as a group, led by a 24% > plunge in Meritage Homes Corp. > > US builders in October broke ground on the fewest new homes and > obtained permits for future construction at the lowest levels on > record, signs the housing slump may extend into a fourth year. > > A bigger-than-forecast 1% drop in the consumer price index was > triggered by a plunge in fuel costs and discounts on automobiles and > clothing to entice consumers amid a weakening economy. Excluding food > and energy, so-called core prices unexpectedly fell for the first time > since 1982. > > Carmakers Make Case > > General Motors retreated 30 cents to $US2.79. Chief executive Rick > Wagoner and fellow auto-industry leaders are urgently seeking a > government bailout package to stem a collapse in the US auto industry. > > Ford, the second-biggest US automaker, dropped 42 cents, or 25%, to > $US1.26. > > Car company executives made their plea for government aid for a second > day as Senate Republican leader Mitch McConnell pressed lawmakers to > expedite $US25 billion in previously approved auto loans. Support has > waned for a Democratic plan to help the automakers with funds from the > recently approved $US700 billion bank-rescue fund. That idea is > opposed by President George W. Bush and Senate Republicans, making it > unlikely there are enough votes to overcome a presidential veto. > > The cost of protecting corporate bonds from default rose to near a > record on concern automakers won't get a bailout in time to prevent > them from failing. > > 'Soap Opera' > > ''The continuing soap opera that's playing out in Washington with the > automobile manufacturing management testifying today before Congress > is sowing further uncertainty,'' said Marshall Front, who oversees > $US700 million as chairman of Front Barnett Associates in Chicago. ''I > think it's probably preoccupying most people at this point.'' > > The S&P 500 has dropped 48% from its 2007 record as earnings for > companies in the index decreased for five straight quarters and > worldwide writedowns and credit losses reached $US966 billion in the > worst financial crisis since the Great Depression. > > Profits fell 17% on average at companies in the index that have > reported third-quarter results, according to Bloomberg data. Analysts > expect a 9.5% decline in full- year earnings, based on estimates > compiled by Bloomberg. > > CA Inc., one of just seven S&P 500 companies to advance, added 3 cents > to $US15.30. The second-largest maker of software for mainframe > computers was boosted to ''strong buy'' from ''outperform'' by Raymond > James Financial analyst Michael Turits, who said the company is ''well > positioned'' amid an economic slowdown. > > Bloomberg --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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