Post by unlawflcombatnt on Feb 5, 2008 18:27:00 GMT -6
from Reuters:
www.reuters.com/article/ousiv/idUSL3188041320080205
Wall Street skids about 3 percent on recession sign
Feb 5, 2008
By Jennifer Coogan
"Stocks suffered their biggest drop in nearly a year on Tuesday after data showed the worst monthly contraction in the services sector since the last U.S. recession and Standard & Poor's warned it could cut bank credit ratings.
The Dow and S&P 500 had their biggest drops since February 27, 2007. All 30 Dow stocks fell....
Recession fears slammed sectors across the board, ranging from telecommunications to energy. Banks and other financial services stocks fell particularly hard after S&P said any loss of a top credit rating by a major bond insurer could force banks to put hobbled bonds back on their balance sheets, curtailing funds available for basic lending....
The tone for the day was set by the January reading of the Institute for Supply Management's non-manufacturing index. The gauge had its biggest drop since the indicator was created in 1997 and fell to the lowest level since October 2001, aggravating fears that a recession is at hand.
"The U.S is no longer a manufacturing economy, it's a service economy, so this number will carry a lot more weight" than last week's surprise rise in ISM's manufacturing index, said Paul Nolte, director of investments at Hinsdale Associates....
The Dow Jones industrial average .DJI was down -370.03 points, or -2.93 percent, at 12,265.13. The Standard & Poor's 500 Index .SPX was down -44.18 points, or -3.20 percent, at 1,336.64. The Nasdaq Composite Index .IXIC was down -73.28 points, or -3.08 percent, at 2,309.57.
Year-to-date,
the Dow is down -7.5% while
the S&P is -9% lower....
The Nasdaq (is down) -12.9% so far in 2008.
Stocks took a last-minute leg lower after rating agency Fitch said it may cut the AAA-rating on MBIA Inc (MBI.N: Quote, Profile, Research), the world's biggest bond insurer.
Insurer American International Group Inc (AIG.N: Quote, Profile, Research) was one of the worst Dow performers, falling -4.5 percent to $52.93 on fears about credit exposure.
Investment bank Goldman Sachs & Co (GS.N: Quote, Profile, Research) slid -5.5 percent to $189.86 after a broker downgrade. Citigroup Inc (C.N: Quote, Profile, Research) shares dropped -7.4 percent to $27.05.
Oil companies such as Exxon Mobil Corp (XOM.N: Quote, Profile, Research) were under pressure on expectations that an economic downturn will slow transportation and manufacturing, crimping demand for energy.
Exxon was down -3.9 percent at $82.11, making it the top-weighted drag on the S&P.
Technology shares, seen as particularly vulnerable to a downturn in both business and consumer spending, were under pressure.
Shares of business software maker Oracle Corp (ORCL.O: Quote, Profile, Research) fell -4.7 percent to $19.25, while BlackBerry device maker Research In Motion Ltd's stock (RIM.TO: Quote, Profile, Research)(RIMM.O: Quote, Profile, Research) fell -5.2 percent to $88.30.
Verizon shares fell 4.6 percent to $36.83 while stock of rival AT&T Inc (T.N: Quote, Profile, Research) dropped 3.8 percent to $36.73 on the NYSE."
The combined Investment Bank index was down -5.32% for the day.
Fannie Mae and Freddie Mac also declined.
Freddie was down -3.5%.
Fannie was down -3.0%
Citigroup was down -5.5%
Meanwhile, 10-year Treasury Bond prices increased, as yields fell, indicating money moved in to Treasuries, while it moved out of almost everything else.
www.reuters.com/article/ousiv/idUSL3188041320080205
Wall Street skids about 3 percent on recession sign
Feb 5, 2008
By Jennifer Coogan
"Stocks suffered their biggest drop in nearly a year on Tuesday after data showed the worst monthly contraction in the services sector since the last U.S. recession and Standard & Poor's warned it could cut bank credit ratings.
The Dow and S&P 500 had their biggest drops since February 27, 2007. All 30 Dow stocks fell....
Recession fears slammed sectors across the board, ranging from telecommunications to energy. Banks and other financial services stocks fell particularly hard after S&P said any loss of a top credit rating by a major bond insurer could force banks to put hobbled bonds back on their balance sheets, curtailing funds available for basic lending....
The tone for the day was set by the January reading of the Institute for Supply Management's non-manufacturing index. The gauge had its biggest drop since the indicator was created in 1997 and fell to the lowest level since October 2001, aggravating fears that a recession is at hand.
"The U.S is no longer a manufacturing economy, it's a service economy, so this number will carry a lot more weight" than last week's surprise rise in ISM's manufacturing index, said Paul Nolte, director of investments at Hinsdale Associates....
The Dow Jones industrial average .DJI was down -370.03 points, or -2.93 percent, at 12,265.13. The Standard & Poor's 500 Index .SPX was down -44.18 points, or -3.20 percent, at 1,336.64. The Nasdaq Composite Index .IXIC was down -73.28 points, or -3.08 percent, at 2,309.57.
Year-to-date,
the Dow is down -7.5% while
the S&P is -9% lower....
The Nasdaq (is down) -12.9% so far in 2008.
Stocks took a last-minute leg lower after rating agency Fitch said it may cut the AAA-rating on MBIA Inc (MBI.N: Quote, Profile, Research), the world's biggest bond insurer.
Insurer American International Group Inc (AIG.N: Quote, Profile, Research) was one of the worst Dow performers, falling -4.5 percent to $52.93 on fears about credit exposure.
Investment bank Goldman Sachs & Co (GS.N: Quote, Profile, Research) slid -5.5 percent to $189.86 after a broker downgrade. Citigroup Inc (C.N: Quote, Profile, Research) shares dropped -7.4 percent to $27.05.
Oil companies such as Exxon Mobil Corp (XOM.N: Quote, Profile, Research) were under pressure on expectations that an economic downturn will slow transportation and manufacturing, crimping demand for energy.
Exxon was down -3.9 percent at $82.11, making it the top-weighted drag on the S&P.
Technology shares, seen as particularly vulnerable to a downturn in both business and consumer spending, were under pressure.
Shares of business software maker Oracle Corp (ORCL.O: Quote, Profile, Research) fell -4.7 percent to $19.25, while BlackBerry device maker Research In Motion Ltd's stock (RIM.TO: Quote, Profile, Research)(RIMM.O: Quote, Profile, Research) fell -5.2 percent to $88.30.
Verizon shares fell 4.6 percent to $36.83 while stock of rival AT&T Inc (T.N: Quote, Profile, Research) dropped 3.8 percent to $36.73 on the NYSE."
The combined Investment Bank index was down -5.32% for the day.
Fannie Mae and Freddie Mac also declined.
Freddie was down -3.5%.
Fannie was down -3.0%
Citigroup was down -5.5%
Meanwhile, 10-year Treasury Bond prices increased, as yields fell, indicating money moved in to Treasuries, while it moved out of almost everything else.