Oil Drops $7, Financials at New Lows

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

U.S. stocks recovered from the lows of the day as tech stocks edged to the positive territory. Nasdaq recovered from the loss of 1% but Dow and S&P 500 indexes continue to trade near loss of 0.4%. Kimberly Clark dropped more than 5% after it released premiminary results and lowered annual earnigs outlook. Citigroup, Fannie Mae, Freddie Mac and Bank of America fell to their new lows.

[R]1:00 PM New York – Tech stocks edged higher and European markets closed lower on weak banks.[/R]

Dow Jones Industrial Average fell 45.35 or 0.41% to 11,055.19 and S&P 500 gained 0.85 or 0.07% to 1,262.37.

Dow Gainers and Losers

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

America International Group led the decliners in the Dow Jones Industrial Average with a loss of 9.49% or $2.14, to $20.41 followed by losses in Citigroup Inc of 5.91% or $0.90, to $14.32, in Bank of America of 5.71% or $1.15, to $19.00, in JP Morgan Chase of 5.05% or $1.60, to $30.09 and in General Motors of 4.82% or $0.45, to $8.93.

Microsoft Corporation led the gainers in the Dow Jones Industrial Average index with a rise of 1.64% or $0.41, to $25.56 followed by increases in Johnson & Johnson of 1.33% or $0.88, to $67.29.

Stock Movers

Evergreen Solar rose 95 cents to $10.10 after it signed a contract worth $1.2 billion with IBC Solar AG of Germany. The contract increases the company backlog to $3 billion. Evergreen Solar Incorporated ((ESLR)) in the last one year traded as high as $18.85 in December 2007 and as low as $7.52 in Mar 2008. Based on the yesterday’s closing price the company has a market cap of $1.21 billion.

Fannie Mae fell to another low as investors fear that the proposed U.S. government bailout will not include shareholders. Fannie Mae Inc ((FNM)) in the last one year traded as high as $70.57 in October 2007 and as low as $6.68 in July 2008. Based on the yesterday’s closing price the company has a market cap of $7.14 billion.

Kimberly Clark dropped 5% or $2.90 to $55.90 after it announced preliminary second quarter net sales increase of 11% to $5 billion and expects earnings of 99 cents per share, lower than $1.00 per share in the quarter a year ago. The company lowered annual earnings guidance to the range between $4.20 and $4.30 per share compared to the previous range of between $4.45 and $4.60 per share.

Kimberly-Clark Corporation ((KMB)) in the last one year traded as high as $71.16 in October 2007 and as low as $50.42 in July 2008. Based on the yesterday’s closing price the company has a market cap of $23.40 billion.

S&P Movers

Of the stocks in S&P 500 index, 102 increased 390 declined and 8 remained unchanged.

Freddie Mac led the decliners in the S&P 500 index with a loss of 27.85% or $1.98, to $5.13 followed by losses in Fannie Mae of 20.45% or $1.99, to $7.74, in National City Corporation of 15.92% or $0.60, to $3.17, in Wachovia Corporation of 12.40% or $0.60, to $8.62 and in Eaton Corporation of 12.00% or $9.59, to $70.30.

First Horizon led the gainers in the S&P 500 index with a rise of 7.54% or $0.38, to $5.42 followed by increases in Wamu Incorporated of 7.43% or $0.24, to $3.47, in Safeco Corporation of 4.90% or $3.02, to $64.62, in MGIC Investment Corporation of 4.33% or $0.17 to $4.10. State St Corporation of 3.86% or $2.15 to $57.85.