Nasdaq, S&P 500 Indexes Down 2%

123jump.com Staff
20 Jun, 2008
New York City

U.S. stocks dropped sharply on a weakness in financial, techs and consumer discretionary sectors. Banks led the decliners after Wachovia Bank drifted to as low as 12-year low on the mounting worries that banks will have to eliminate dividend and raise more capital. SanDisk fell after Citigroup analyst said that the company may miss the earnings for the current quarter on slower sales. Regional banks rose after Huntington Bancshares reaffirmed its loan loss estimate.

[R]3:55PM New York – U.S. stocks edged lower led by a decline in financial and consumer discretionary stocks.[/R]

U.S. stocks continue to slide in the afternoon trading as crude oil increase and transportation, auto makers, banks retailers fell.

Israel ratcheted up tension in the Middle East as it carried out military exercises, what most analysts interpret this as a signal to Iran for a possible strike to its nuclear installations. Crude oil rose $3 a barrel at its peak to $135 a barrel.

Regional banks rallied after Huntington Bancorp said that default on loans are in line with its expectations. Consumer stocks dropped as higher fuel prices put more pressure on sales of recreational vehicles, boats, and mobile homes.

Gainers and Losers

The NYSE Index dropped 15.92 or 1.22% to 6246.35 points. Of the stocks in S&P index, 66 increased, 431 declined, and 3 were unchanged.

Western Union Co., led gainers in the NYSE index with a rise of 9.84% with a price change of $2.28, followed by gains in Intrepid Potash Inc of $7.10, in Building Materials Holding Company of 6.57%, in The Steak n Shake Co of 5.18% and Sovereign Bancorp Inc 4.96%.

MF Global Ltd. led losers in the NYSE index with a drop of 21.53% followed by losses in Fin Sec Ass Holding of 12.82%, in Radian Group Inc of 12.69%, in Dana Holding Corp 11.97% and in Huaneng Power International Inc of 10.57%.

Huntington Banc led advancers in the S&P 500 index with a rise of 26.85%, in Western Union of 9.28%, in Fifth Third Bancorp of 6.67%, in Sovereign Bancorp of 5.19%, and Comerica Inc 3.59%.

SanDisk Corp. led decliners in the S&P 500 index with a drop of 9.68% followed by losses in MBIA Inc 7.44% in Ford Motor Co of 6.96, in OfficeMax Inc 6.34% and in Brunswick Corp of 5.86%.

In London trading FTSE 100 fell 1.53% or 87.6 at 5,620.80.

Of the FTSE 100 stocks 26 gained, 75 declined, and 1 was unchanged. Tullow Oil led advancers in the index shares with a rise of 6.07% followed by Antofagasta gaining 4.72%.