U.S. Indexes Drop 2.5%, BofA Drops 9%

123jump.com Staff
16 Jul, 2010
New York City

U.S. stocks dropped sharply after General Electric, Google and Bank of America led the decliners. The market indexes dropped more than 2.5% after Bank of American estimated higher credit card charges and said industry may have under estimated.

[R]500 PM New York – U.S. stocks dropped sharply after General Electric, Google and Bank of America led the decliners. The market indexes dropped more than 2.5% after Bank of American estimated higher credit card charges and said industry may have under estimated.[/R]

U.S. market indexes dropped sharply and erased gains of the week after General Electric, Bank of America and Google tumbled.

Investors sold stocks after General Electric reported a decline in quarterly sales, Google missed analysts’ estimates of earnings and revenues and Bank of America estimated a sharply higher credit card charges.

Stocks fell sharply. Bank of America dropped 9%, Citigroup dropped 6.3% and JPMorgan fell more than 4%.

Google dropped 7% after it reported lower than expected earnings and sales estimate.

The European markets decline after weaker-than-expected revenue from U.S. corporations. The Basel Committee urges for a countercyclical capital buffer proposal. French PM optimistic Europe will rebound from the current financial crisis. Euro-zone trade balance slides to €3.4 billion deficit.

The UK indexes trade higher after BP successfully halted flow of oil into the Gulf of Mexico. BP begins well integrity test on the MC252 well. The UK first quarter construction output drops. Ireland Central Bank Governor stresses capital requirement needs will be met by banks.

Stocks in Japan fell on gloomy outlook in the U.S. Toyota and Nissan plan to expand output in Latin America. Komatsu plans to double output. Japan delays import of wheat. Demand for services falls in May. A new rail link from central Tokyo to Narita airport will cut travel time.

Stocks in China region fluctuated. Shanghai proposes gold exchange certificates for mutual funds. Agbank shares fare better in Hong Kong debut. Three officers of Zijin Mining are detained by police following investigations. Sichuan Western Resources permitted to purchase mining rights in Jiangxi

Stocks in Mumbai traded higher on earnings outlook. TCS reports first quarter profit surged 24%. Technofab Engineering gained 18% on debut. IOL Chemicals soared on preferential issue plan. UTV Software increased 5% on strong first quarter results.