Post by unlawflcombatnt on Aug 14, 2007 14:07:14 GMT -6
from Yahoo News
Stocks slide on credit, consumer worries
By JOE BEL BRUNO, AP Business Writer
8/14/07 12:10 PM PDT
"Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending amid a disappointing outlook from Wal-Mart Stores Inc., and word that a large money market fund was struggling because of weeks of volatility.
The world's biggest retailer (Wal-Mart) cut its profit outlook as economic conditions have begun crimping consumer spending....
Home Depot Inc., the world's largest home improvement chain, said....quarterly profit (declined) almost 15 percent.
Exacerbating investors' nervousness was confirmation that Sentinel Management Group Inc., which oversees $1.6 billion in assets, is seeking to halt investor redemptions. Other funds are said to have similar problems as they face withdrawal demands at a time it has become difficult to value low-quality debt.
Hedge funds and other big institutional investors have taken a beating in recent weeks due to the market turbulence. On Monday, Goldman Sachs Group Inc. said three funds it manages have had significant losses — and infused $3 billion in capital into one of them.
Wall Street has been pummeled as a deepening credit crunch has spooked the market, and led to anxiety about potential losses at financial firms and funds. The Federal Reserve, which has injected some $64 billion of liquidity into the U.S. banking system since Thursday, said Tuesday it stood ready to act again should market conditions warrant...
The European Central Bank injected another $10.5 billion into money markets on Tuesday and said conditions were normalizing after several days of volatility. There was no action Tuesday by the Fed.
In late afternoon trading,
the Dow Jones industrial average fell 195.25, or 1.48 percent, to 13,041.28....
The Standard & Poor's 500 index shed....1.63 percent, to 1,429.23,...
the Nasdaq composite index fell....1.51 percent, to 2,503.73.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.78 percent late Monday. The fixed-income market has risen as stock investors move into securities deemed less volatile....
Stocks originally were lifted in early trading on government data that indicated that inflation remains in check. But, that gave way to further concerns about consumer spending and widening credit worries.
The Labor Department said wholesale prices rose in July for the fifth time in six months. Its producer price index advanced 0.6 percent amid higher energy costs....
Among the hardest hit sectors on Tuesday were financial services stocks, which have been sliding as worries mounted that subprime loan trouble could spread to other parts of the economy. Major investment banks have reported losses linked to mortgage-backed securities.
Goldman Sachs fell $7.23, or 4.1 percent, to $170.27 — extending losses from Monday.
Bear Stearns Cos., which earlier this summer disclosed that two of its funds were all but wiped out, fell $2.09 to $107.51.
Sentinel Management said in a letter to clients that it cannot meet investors' requests to withdraw their money without selling investments at a steep discount....The firm sent a request to the Commodity Futures Trading Commission for permission to stop investors from cashing out,
but it was rejected.
Retail stocks were also hit after Wal-Mart, one of the 30 stocks included in the Dow, lowered its profit forecast amid weak economic conditions that it blames for hurting consumer spending globally....
Wal-Mart shares tumbled $2.36, or 5.1 percent, to $43.81.
Home Depot warned that it expects profit to decline for fiscal 2007....
Shares fell $1.31, or 3.7 percent, to $33.93.
Mattel Inc. shares fell....3.4 percent, to $22.77
after it announced the recall of 8.8 million toys. It was Mattel's second big recall of Chinese-made toys in two weeks.
Declining issues outpaced advancers by a 3 to 1 basis on the New York Stock Exchange, where volume came to 1.23 billion shares....
The Russell 2000 index of smaller companies fell...1.78 percent, to 768.92....
Japan's Nikkei stock average rose 0.27 percent.
Britain's FTSE 100 fell 0.10 percent...
Germany's DAX index slipped 0.52 percent...
France's CAC-40 fell 0.82 percent."
Stocks slide on credit, consumer worries
By JOE BEL BRUNO, AP Business Writer
8/14/07 12:10 PM PDT
"Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending amid a disappointing outlook from Wal-Mart Stores Inc., and word that a large money market fund was struggling because of weeks of volatility.
The world's biggest retailer (Wal-Mart) cut its profit outlook as economic conditions have begun crimping consumer spending....
Home Depot Inc., the world's largest home improvement chain, said....quarterly profit (declined) almost 15 percent.
Exacerbating investors' nervousness was confirmation that Sentinel Management Group Inc., which oversees $1.6 billion in assets, is seeking to halt investor redemptions. Other funds are said to have similar problems as they face withdrawal demands at a time it has become difficult to value low-quality debt.
Hedge funds and other big institutional investors have taken a beating in recent weeks due to the market turbulence. On Monday, Goldman Sachs Group Inc. said three funds it manages have had significant losses — and infused $3 billion in capital into one of them.
Wall Street has been pummeled as a deepening credit crunch has spooked the market, and led to anxiety about potential losses at financial firms and funds. The Federal Reserve, which has injected some $64 billion of liquidity into the U.S. banking system since Thursday, said Tuesday it stood ready to act again should market conditions warrant...
The European Central Bank injected another $10.5 billion into money markets on Tuesday and said conditions were normalizing after several days of volatility. There was no action Tuesday by the Fed.
In late afternoon trading,
the Dow Jones industrial average fell 195.25, or 1.48 percent, to 13,041.28....
The Standard & Poor's 500 index shed....1.63 percent, to 1,429.23,...
the Nasdaq composite index fell....1.51 percent, to 2,503.73.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.78 percent late Monday. The fixed-income market has risen as stock investors move into securities deemed less volatile....
Stocks originally were lifted in early trading on government data that indicated that inflation remains in check. But, that gave way to further concerns about consumer spending and widening credit worries.
The Labor Department said wholesale prices rose in July for the fifth time in six months. Its producer price index advanced 0.6 percent amid higher energy costs....
Among the hardest hit sectors on Tuesday were financial services stocks, which have been sliding as worries mounted that subprime loan trouble could spread to other parts of the economy. Major investment banks have reported losses linked to mortgage-backed securities.
Goldman Sachs fell $7.23, or 4.1 percent, to $170.27 — extending losses from Monday.
Bear Stearns Cos., which earlier this summer disclosed that two of its funds were all but wiped out, fell $2.09 to $107.51.
Sentinel Management said in a letter to clients that it cannot meet investors' requests to withdraw their money without selling investments at a steep discount....The firm sent a request to the Commodity Futures Trading Commission for permission to stop investors from cashing out,
but it was rejected.
Retail stocks were also hit after Wal-Mart, one of the 30 stocks included in the Dow, lowered its profit forecast amid weak economic conditions that it blames for hurting consumer spending globally....
Wal-Mart shares tumbled $2.36, or 5.1 percent, to $43.81.
Home Depot warned that it expects profit to decline for fiscal 2007....
Shares fell $1.31, or 3.7 percent, to $33.93.
Mattel Inc. shares fell....3.4 percent, to $22.77
after it announced the recall of 8.8 million toys. It was Mattel's second big recall of Chinese-made toys in two weeks.
Declining issues outpaced advancers by a 3 to 1 basis on the New York Stock Exchange, where volume came to 1.23 billion shares....
The Russell 2000 index of smaller companies fell...1.78 percent, to 768.92....
Japan's Nikkei stock average rose 0.27 percent.
Britain's FTSE 100 fell 0.10 percent...
Germany's DAX index slipped 0.52 percent...
France's CAC-40 fell 0.82 percent."