Turbulent Trading in New York

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

Stocks recovered from near 6% loss two times in the trading today. In the late afternoon regulators suggested that settlement for Lehman bonds insurance went ahead with no apparent damage to the financial system. Banks recovered after the news and led the rebound in the indexes.

4:30PM New York, 10:30AM Frankfurt, 6:30AM Sydney[R]– Stocks in New York in turbulent trading dropped as much as 6% two times before recovering to close down only 1.3%, finishing one of the worst weekly loss in recent history.[/R]

Global Markets

The finance ministers gather in Washington to discuss current financial markets and banking system health and look for a global solution. The European political leaders are meeting in Paris this weekend to find their own solution but are likely to focus on banking system.

AIG fell after media reports suggested another need for capital infusion. Wachovia rose after Citigroup abandoned the takeover plan, clearing path for Wells Fargo. BHP Billiton, Rio Tinto and Brazil based Vale plunged 10%. Macys fell on sales warning. Chevron fell after the company raised q3 views.

Asian markets plunge as global credit markets remain seized. Yamato Life in Japan filed for bankruptcy protection on sharp losses in investment portfolio. Markets in India plunge to as low as 9.6%, rupee drops to a record low and the RBI lowered the cash reserve ratio for banks.


North American Markets

Dow Jones Industrial Average plunged 112.55 or 1.31% to a close of 8,466.64, S&P 500 Index closed down 9.19 or 1.01% to 900.73, 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 12 closed higher and 18 closed lower.

Exxon Mobil led decliners in the index with a fall of 8.6% followed by losses in Chevron Corp of 8%, in Alcoa Inc of 7.5%, in Boeing Company of 5.3%, in Intel Corp of 2.95% and in American Express of 2.9%.

JP Morgan Chase led gainers in the Dow Jones Industrial Average with a rise of 13.5% followed by gains in General Electric of 13.1%, in Citigroup of 9.13% and in Bank of America of 6.3%.

Of the stocks in S&P 500 index, 178 increased, 321 declined and 1 was unchanged.

Morgan Stanley led the decliners in the S&P 500 index with a plunge of 22.25% followed by losses in CBS Corp of 20.1%, in National Oilwell of 18.7%, in BJ Services Co of 18.1%, in Viacom Inc of 17.8% and in Compuware Corp of 17.7%.

Dynegy Inc led the gainers in the S&P 500 index followed by gains of 49% in Wachovia of 43%, in XL Capital Ltd of 35%, in Lincoln National Corp of 30.8% and in CB Richard Ellis of 27.6%.

South American Markets Indexes

Peru led decliners in the region with a fall of 10.97% followed by decrease in Colombia of 8.7%, in Chile of 3.76%, in Argentina of 5.5%, in Mexico of 1.99%, in Venezuela of 1.34% and in Argentina of 1.8%.

Europe Markets Review

In London FTSE 100 Index closed lower 381.74 or 8.85% to 3,932.06, in Paris CAC 40 Index decreased 266.21 or 7.73% to close at 3,176.49 and in Frankfurt DAX index lower 342.69 or 7.01% to close at 4,544.31. In Zurich trading SMI decreased 451.62 or 7.79% to close at 5,347.22.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 881.06 or 9.62% to 8,276.43, Hang Seng index in Hong Kong decreased 1,146.37 or 7.19% closed to 14,796.87. CSI 300 index in China lower 88.34 or 4.43% closed to 1,906.96. ASX 200 index in Australia decreased 360.20 or 8.34% to close 3,960.70. The KL Composite index in Malaysia lower 34.88 or 3.60% closed to 934.01.

The Kospi Index in South Korea decreased 53.42 or 4.13% to close at 1,241.47. SET index in Thailand closed lower 48.03 or 9.61% to 451.96. The Sensex index in India decreased 800.51 or 7.07% closed to 10,527.85. Market of Indonesia was closed today.

Commodities, Metals, and Currencies

Crude oil decreased $7.11 to close at $79.48 a barrel for a front month contract, natural gas decreased 18 cent to $6.64 per mBtu and gasoline futures decreased 17.73 cents to close at 185.00 cents per gallon.

Wheat futures closed down 41.25 cents in Chicago trading and closed at $5.63 a bushel. Sugar increased 0.67 cent to 11.23 cents a pound. Soybean future closed down 70 cents to $9.10 a bushel.

Gold decreased $37.00 in New York trading to close at $849.90 per ounce, silver closed up $2.04 cents to $9.83 per ounce and copper for the front month delivery decreased 26.70 cent to $2.1390 per pound.

Dollar edged higher against euro to $1.3398 and declined against yen to 100.32.

Yields on 10-year U.S. bonds increased to 3.87% and with 30-year maturities increased to 4.14%.