Prudential, Hartford, MetLife Plunge

123jump.com Staff
01 Oct, 2008
New York City

U.S. stocks traded lower after General Electric rating was lowered on weak earnings outlook in its financial services. GE dropped more than 7% and dragged market indexes lower with it. MetLife, Prudential and Hartford Life plunged on the earnings worries. Peabody Energy, Freeport McMoran drop 10%.

[R]10:25AM New York – General Electric led the market indexes lower. Volatile markets trade lower ahead of the U.S. Senate vote on the bailout plan.[/R]

U.S. stocks trade lower ahead of Senate vote on the proposed bank bailout bill. The deeply unpopular bill with voters but leaders of Congress and President are determined to pass an amended bill that increases the insurance on bank deposits to $250,000 and increase in oversight to the Treasury authority in managing the plan.

The House voted down the bill after voters flooded the telephone lines of Congressional representatives and billed the plan as nothing but a bailout of rich bankers at the expense of common man.

General Electric ((GE)) dropped $2.08 or 9% to $23.39 after Deutsche Bank analyst lowered his rating on the company on the concerns that financial services division earnings may be lower than expected.

Exxon Mobil ((XOM)) rose in the morning but quickly fell with the market sell-off $1.70 to $75.91. Barclays Capital raised its rating on the largest oil explorer.

Insurance stocks continue to slide on the weakness in the market. Hartford Financial Services ((HIG)) dropped 10% or $4.75 to $36.22. MetLife ((MET)) declined 15% or $8.09 to $47.94 and Prudential Financial ((PRU)) dropped 8% or $5.45 to $66.56. Manulife Financial Corporation ((MFC)) dropped 66 cents to $36.06.

Daimler AG ((DAI)) dropped $4.41 or 9% to $46.12 after it lowered its annual earnings outlook on higher steel prices, weak sales in the last three months and falling dollar. Toyota Motor ((TM)) and Honda Motor ((HMC)) declined as well. General Motors ((GM)) and Ford Motor Company ((F)) edged lower as they battle falling sales of SUVs and rising energy prices.

Mining companies fell as prices copper, gold and aluminum decline in the morning trading. Freeport McMoran ((FCX)) dropped $4.02 to $52.91, United States Steel dropped $5.20 to $72.34 and Nucor Company ((NUE)) dropped %1.99 to $37.55.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 108.40 or 0.96% to 11,368.26. ASX 200 index in Australia increased 194.10 or 4.22% to close 4,794.60. Markets of Hong Kong, Shanghai and Malaysia were closed today.

The Kospi Index in South Korea decreased 8.39 or 0.58% to close at 1,439.67, SET index in Thailand closed lower 2.09 or 0.35% to 594.45. The Sensex index in India increased 195.24 or 1.52% closed to 13,055.67. Market of Indonesia was closed today.

Europe Markets Review

In London FTSE 100 Index traded higher 61.10 or 1.25% to 4,963.60, in Paris CAC 40 Index increased 7.72 or 0.19% to 4,039.82 and in Frankfurt DAX index traded lower 26.52 or 0.45% to 5,804.50. In Zurich trading SMI increased 68.44 or 1.03% to 6,723.33.