Crude Above $107, U.S. Stocks Down

123jump.com Staff
10 Mar, 2008
New York City

U.S. stocks fell after two hours of trading as market worried about the weak economic conditions. Oil fell at the opening but quickly recovered from its loss of 1% to trade at intra-day record high. McDonalds reported a rise in same store sales in February on systemwide sales rise.

[R]11:30AM New York – U.S. stocks and commodities declined as nervous investors sell. McDonald’s same store sales gained.[/R]

Stocks and commodities are down

U.S. stocks were caught in a downward trend after commodities traded lower and European markets were on the defensive. Malaysia fell 10% after the election results.

In the morning trading economic slowdown worries dragged the commodities and base metals lower. Oil fell 1% but managed to rebound to a new intra-day record above $107 a barrel. Gold fell as much as $11 and recovered to trade at a loss of $4.60 to $969.60 per ounce.

Countrywide falls after the FBI investigation

Countrywide Financial ((CFC)) after a report in Wall Street Journal that FBI is investigating the company. Bank of America is still going ahead with its plan to acquire the company despite the deteriorating mortgage market and weakening housing market. Countrywide stock traded at $4.79, down 29 cents.

Nationwide receives a bid at $47.20 per share

Nationwide Financial Services Inc. ((NFS)) received $47.20 per share or $2.2 billion from a group of controlling shareholders. The proposal is from a controlling shareholder group of Nationwide Mutual Insurance Company, Nationwide Mutual Fire Insurance Company and Nationwide Corporation.

As of December 31, 2007, Nationwide had 46.7 million shares of Class A common stock outstanding, representing 33.7% equity ownership and 4.8% of the combined voting power. Nationwide controlling shareholder group owns all of the outstanding shares of Nationwide Class B common stock representing 66.3% equity ownership and 95.2% of the combined voting power of the shareholders.

The NFS Board of Directors has appointed a Special Committee of the Board, comprised entirely of independent, non-affiliated directors, to consider the proposal.

McDonald’s comparable store sales rises

McDonald''s Corporation announced today that global comparable sales rose 11.7% for the month and 8.6% for year-to-date February. Systemwide sales for McDonald''s worldwide restaurants increased 19.9% in February, or 13.2% in constant currencies.

Sales had 4% points boost from an extra day due to leap year.

February comparable sales increased 8.3% in the U.S. as McDonald''s breakfast and gourmet coffee helped to advance sales. In Europe, results in the U.K., France, Germany and Russia drove comparable sales up 15.4% for the month. In Asia/Pacific, Middle East and Africa, February comparable sales increased 10.9%.