Post by unlawflcombatnt on Jul 22, 2007 21:30:51 GMT -6
Below are excerpts from a Bloomberg article that sums up most of the major market events for the week ending July 20, 2007.
The title of the article is
U.S. Stocks Tumble Amid Mortgage Losses; Merrill, Lehman Drop
By Nick Baker
7/21/07
"U.S. stocks had their first weekly decline in a month after concern grew that loan losses at banks and brokerages will restrain corporate profit growth.
Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Morgan Stanley helped financial shares in the Standard & Poor's 500 Index tumble the most since March. Google Inc., Intel Corp. and Pfizer Inc. declined following their quarterly reports.
Speculation that the worst housing slump since 1991 will be exacerbated as defaults by the riskiest borrowers surge prompted the Dow Jones Industrial Average to retreat after closing above 14,000 for the first time on July 19. Caterpillar Inc. fueled the decline after its profit dropped on rising costs and falling U.S. sales of truck motors and construction machinery.
``Anything having to do with the subprime-mortgage meltdown that's taking place -- and certainly Caterpillar with its construction equipment related to housing falls into that category -- are being taken out and shot,'' said Jeffrey Kleintop, who helps oversee more than $150 billion as chief market strategist at LPL Financial Services in Boston.
The S&P 500 fell for the first week since the period ended June 22, losing 1.2 percent to 1534.1. The Dow industrials declined 0.4 percent to 13,851.08....
In other markets, investors stung by subprime losses sought the safety of government securities, sending U.S. Treasuries higher. The yield on the benchmark 10-year note fell to a six-week low of 4.95 percent. Yields move inversely to prices. Crude oil reached an 11-month high of $76.13 a barrel in New York....
Speculation that defaults by borrowers with limited or poor credit histories will reduce banks' earnings pushed down 87 of 92 financial firms in the S&P 500. As a group, they declined 3.5 percent, the most since the week ended March 2.
Merrill Lynch retreated 7.5 percent to $80.04, the lowest since March 16. Lehman fell 7.1 percent to a 10- month low of $68.29. Morgan Stanley slipped 7.8 percent to $67.57.
Bear Stearns Cos., which this week told investors in its two failed hedge funds that they'll get little if any money back after ``unprecedented declines'' in subprime securities, lost 5.7 percent to $134.72....
Google shares fell 5.8 percent to $520.12....
Intel shares retreated 5.5 percent to $24.55. The world's biggest maker of computer microprocessors said increased competition forced it to cut computer-chip prices....
Pfizer lost 3.9 percent to $24.90....Revenue fell 5.6 percent to $11.1 billion, dragged down by generic competition to blood-pressure and anti-depressant medicines and a drop in sales of the cholesterol pill Lipitor.
Caterpillar slipped 2.3 percent to $83.20, including the biggest one-day drop in nine months. Second-quarter earnings fell 21 percent to $823 million, or $1.24 a share, missing analysts' average estimate of $1.49 a share...."
The full Bloomberg article can be found at
U.S. Stocks Tumble Amid Mortgage Losses; Merrill, Lehman Drop
The title of the article is
U.S. Stocks Tumble Amid Mortgage Losses; Merrill, Lehman Drop
By Nick Baker
7/21/07
"U.S. stocks had their first weekly decline in a month after concern grew that loan losses at banks and brokerages will restrain corporate profit growth.
Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Morgan Stanley helped financial shares in the Standard & Poor's 500 Index tumble the most since March. Google Inc., Intel Corp. and Pfizer Inc. declined following their quarterly reports.
Speculation that the worst housing slump since 1991 will be exacerbated as defaults by the riskiest borrowers surge prompted the Dow Jones Industrial Average to retreat after closing above 14,000 for the first time on July 19. Caterpillar Inc. fueled the decline after its profit dropped on rising costs and falling U.S. sales of truck motors and construction machinery.
``Anything having to do with the subprime-mortgage meltdown that's taking place -- and certainly Caterpillar with its construction equipment related to housing falls into that category -- are being taken out and shot,'' said Jeffrey Kleintop, who helps oversee more than $150 billion as chief market strategist at LPL Financial Services in Boston.
The S&P 500 fell for the first week since the period ended June 22, losing 1.2 percent to 1534.1. The Dow industrials declined 0.4 percent to 13,851.08....
In other markets, investors stung by subprime losses sought the safety of government securities, sending U.S. Treasuries higher. The yield on the benchmark 10-year note fell to a six-week low of 4.95 percent. Yields move inversely to prices. Crude oil reached an 11-month high of $76.13 a barrel in New York....
Speculation that defaults by borrowers with limited or poor credit histories will reduce banks' earnings pushed down 87 of 92 financial firms in the S&P 500. As a group, they declined 3.5 percent, the most since the week ended March 2.
Merrill Lynch retreated 7.5 percent to $80.04, the lowest since March 16. Lehman fell 7.1 percent to a 10- month low of $68.29. Morgan Stanley slipped 7.8 percent to $67.57.
Bear Stearns Cos., which this week told investors in its two failed hedge funds that they'll get little if any money back after ``unprecedented declines'' in subprime securities, lost 5.7 percent to $134.72....
Google shares fell 5.8 percent to $520.12....
Intel shares retreated 5.5 percent to $24.55. The world's biggest maker of computer microprocessors said increased competition forced it to cut computer-chip prices....
Pfizer lost 3.9 percent to $24.90....Revenue fell 5.6 percent to $11.1 billion, dragged down by generic competition to blood-pressure and anti-depressant medicines and a drop in sales of the cholesterol pill Lipitor.
Caterpillar slipped 2.3 percent to $83.20, including the biggest one-day drop in nine months. Second-quarter earnings fell 21 percent to $823 million, or $1.24 a share, missing analysts' average estimate of $1.49 a share...."
The full Bloomberg article can be found at
U.S. Stocks Tumble Amid Mortgage Losses; Merrill, Lehman Drop