S&P Down 7.6%; GM Plunges 31%

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

Stocks plunge as investors lose confidence in the bank bailout plan and interbank lending remains tight. Of the stocks in S&P 500 index, 22 increased, 477 declined and 1 was unchanged. Of the index stocks, 5 rose more than 3% and 403 fell more than 3%. And 91 stocks plunged more than 10%.

4:30PM New York, 10:30AM Frankfurt, 6:30AM Sydney[R]– U.S. stocks plunged 7.3% and for the year S&P 500 index declined 38%, worst decline since 1937.[/R]

Global Markets

The New York Fed was forced to lend additional $37.8 billion to the fallen insurance giant AIG after its securities lending division faced a barrage of cash calls. Of the $85 billion loan issued by the Fed, $61 billion has already been used and more money may be needed to meet cash requirements.

Stock in New York reversed the earlier gains and plunged 7%. IBM reported better than expected earnings and guided 22% rise in the current fiscal year earnings. Interbank lending remains tight and rate hovered bear 5%, despite global rate cut. The market slide accelerated in the final hours as General Motors tumbled 31% and closed for the first time below $5 price. XL Capital sank 54% after Goldman Sachs lowered the rating on the company. Goldman Sachs closed at $100, a 3-year low.

Prudential Financial, Inc ((PRU)) dropped 23% or $10.02 to $33.27 and is down from its peak of $101 in mid-October 2007. The insurance company is expected to announce earnings shortfall and may have to raise capital to shore up its balance sheet. Hartford Financial Services ((HIG)) 19% or $4.75 to $20.11 and MetLife ((MET)) rose 3.7% to $1.00.

North American Markets

Dow Jones Industrial Average plunged 678.91 or 7.33% to a close of 8,579.19, S&P 500 Index closed down 75.02 or 7.62% to 909.92, and Nasdaq Composite Index down 95.21 or 5.47% to close at 1,645.12. In Toronto TSX Composite closed down 456.13 or 4.54% to 9,600.18.

Of the 30 stocks in Dow Jones Industrial Average none closed higher and 30 closed lower.

General Motors Inc led decliners in the index with a fall of 30.7% followed by losses in Alcoa Inc of 12.5%, in Chevron Corp of 10.5%, in Exxon Mobil of 10.3%, in American Express of 9.99% and in Bank of America of 4.3%.

Of the stocks in S&P 500 index, 22 increased, 477 declined and 1 was unchanged. Of the index stocks, 5 rose more than 3% and 403 fell more than 3%. And 91 stocks plunged more than 10%.

XL Capital Ltd led the decliners in the S&P 500 index with a plunge of 54.2% followed by losses in Lincoln National Corp of 38.76%, in Unum Group of 28.7%, in Legg Mason Inc of 27.6%, in CIT Group Inc of 26.4% and in General Growth Properties of 17.5%.

King Pharmaceuticals led the gainers in the S&P 500 index followed by gains of 5.7% in Dynegy Inc, in Sealed Air Corp of 4.9%, in Corning Inc of 4.4%, in Deere & Company of 3.7%, in Southwest Air of 2.89% and in Applied Materials of 2.9%.

South American Markets Indexes

Peru led decliners in the region with a fall of 8.8% followed by decrease in Argentina of 5.3% in Brazil of 3.9%, in Mexico of 1.8%, in Colombia of 2.31%, in Venezuela of 1.49%, in Argentina of 1.8% and in Mexico of 1.78%.

Europe Markets Review

In London FTSE 100 Index closed lower 52.89 or 1.21% to 4,313.80, in Paris CAC 40 Index decreased 54.19 or 1.55% to close at 3,442.70 and in Frankfurt DAX index lower 126.62 or 2.53% to close at 4,887.00. In Zurich trading SMI decreased 274.61 or 4.52% to close at 5,798.84.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 45.83 or 0.50% to 9,157.49, Hang Seng index in Hong Kong increased 511.51 or 3.31% closed to 15,943.24. CSI 300 index in China lower 27.58 or 1.36% closed to 1,955.30. ASX 200 index in Australia decreased 67.20 or 1.53% to close 4,320.90. The KL Composite index in Malaysia lower 1.30 or 0.13% closed to 968.89.

The Kospi Index in South Korea increased 8.20 or 0.64% to close at 1,294.89 and SET index in Thailand closed higher 7.65 or 1.55% to 499.99. Market of Indonesia and India were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $4.13 to close at $84.82 a barrel for a front month contract, natural gas increased 5 cent to $6.79 per mBtu and gasoline futures decreased 5.48 cents to close at 197.50 cents per gallon.

Wheat futures closed up 3.25 cents in Chicago trading and closed at $6.04 a bushel. Sugar increased 0.01 cent to 11.90 cents a pound. Soybean future closed up 16 cents to $9.71 a bushel.

Gold increased $3.40 in New York trading to close at $909.90 per ounce, silver closed up $0.26 cents to $12.03 per ounce and copper for the front month delivery increased 4.850 cent to $2.365 per pound.

Dollar edged lower against euro to $1.3602 and declined against yen to 99.80.

Yields on 10-year U.S. bonds decreased to 3.77% and with 30-year maturities increased to 4.10%.