Banks, Lehman, Citi, Merrill Drop 5%

123jump.com Staff
14 Jul, 2008
New York City

U.S. stocks traded lower as financial stocks declined. Zions Bancorp, SunTrust, Bank of America and Comercia fell after Goldman Sachs lowered the outlook for the banks. Lehman Brothers, Merrill Lynch and Citigroup fell more than 5% after Fannie and Freddie rescue plan failed to impress investors. Yahoo dropped after it rejected another overture from Carl Ichan and Microsoft. Apple gained after it sold more than one million iPhone 3G version in the first three days of launch.

[R]2:30 PM New York – U.S. stocks traded lower after the Fed and Treasury asked the Congress’s permission to pump capital into two troubled mortgage agencies.[/R]

Dow Jones Industrial Average fell 33.46 or 0.3% to 11,145.65 and S&P 500 dropped 8.48 or 0.70% to 1,230.96.

Dow Gainers and Losers

Of the 30 stocks in Dow Jones Industrial Average 28 gained and 2 declined.

General Motors led the decliners in the Dow Jones Industrial Average with a loss of 0.61% or $0.06, to $9.86 followed by losses in Hewlett-Packard of 0.05% or $0.02, to $41.57.

AIG led the gainers in the Dow Jones Industrial Average index with a rise of 2.35% or $0.54, to $23.62 followed by increases in Bank of America of 1.94% or $0.42, to $22.09, in of 3M Company 1.78% or $1.22, to $69.94, in Intel Corp of 1.70% or $0.35 to $20.99 and in Walt Disney Co of 1.68% or $0.49 to $29.69.

Stock Movers

Apple Inc stock rose sharply after it sold in the first three days more than one million iPhone 3G phones. Apple rose $2.47 to $175.04. Apple ((AAPL)) in the last one year traded as high as $199.83 in December 2007 and as low as $117.05 in August 2007. Based on the yesterday’s closing price the company has a market cap of $156.20 billion.

Zions Bancorp ((ZION)) fell $5.10 after Goldman Sachs lowered its dividend outlook on the bank and others including SunTrust, Bank of America and Comercia Inc. SunTrust dropped $1.81, Bank of America fell 97 cents to $20.70 and Wachovia plunged $1.17 to $10.36.

Yahoo! Inc dropped $1.06 $22.48 after it rejected overtures for a revised bid from Microsoft and pressures from an activist investor Carl Ichan. Yahoo Inc ((YHOO)) in the last one year traded as high as $33.63 in October 2007 and as low as $19.18 in January 2008. Based on the yesterday’s closing price the company has a market cap of $30.94 billion.

AMR Corp, the parent of American Airlines dropped 25 cents to $4.51 and UAL Corp, the parent of United Airlines dropped 7 cents to $3.56. UAL Corp ((UAUA)) in the last one year traded as high as $51.49 in October 2007 and as low as $3.50 in July 2008. Based on the yesterday’s closing price the company has a market cap of $3.50 billion.

S&P Movers

Of the stocks in S&P 500 index, 419 gained, 79 declined and 2 remained unchanged.

Zions Bancorp led the decliners in the S&P 500 index with a loss of 8.80% or $2.26, to $23.43 followed by in losses in Allied Waste of 4.67% or $1.71, to $34.90, in Waste Management of 3.85% or $1.71, to $34.90, in National City Corp of 3.85% or $0.17, to $4.25 and in Yahoo Inc of 3.31% or $0.78, to $22.79.

Fannie Mae led the gainers in the S&P 500 index with a rise of 18.63% or $1.91, to $12.16 followed by increases in MGIC Investment Corp of 18.07% or $0.75, to $4.90, in Freddie Mac of 14.58% or $1.13, to $8.88, in Allegheny Tech of 10.64% or $5.36 to $55.71, and in Macy’s Inc of 9.56% or $1.49 to $17.07.