Weak Global Markets, Nasdaq Down 5%

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

U.S. stocks fell with Nasdaq dropping 5%. Weak October sales led the retailers, financials and energy stocks lower. European Union and Hong Kong registered two consecutive quarterly economic growth declines. Berkshire Hathaway takes a stake in ConocoPhillips. Insurer, Hartford Financial buys a bank.

4:30PM New York, 10:30PM Frankfurt, 6:30AM Sydney[R]– U.S. stocks fell sharply after October retail sales declined. Retailers, energy and financials fell. The European Union member nations registered two consecutive quarterly declines in economic growth. Hong Kong also entered into a recession.[/R]

Global Markets

The U.S. retail sales in October declined 2.8% from September and dropped 4.1% from a year ago. Motor vehicles and parts sales fell 23.4% and furniture sales declined 13.5%. The European Union economy shrank in the third quarter declined 0.2% matching the second quarter rate.

Retailers fell after the October sales declined. Nordstrom, Kohl’s, JC Penney and Abercrombie & Fitch fell on earnings. Qualcomm, Motorola and Nokia fell after Nokia lowered industry unit sales estimates. American Express dropped below $20. Cheesecake Factory fell below $6.

Stocks in Japan rose 2.7% today but dropped 1.4% for the week. Dix Kuroki Co. files for bankruptcy with 18.1 billion yen liabilities. Unemployment insurance claims soar 2.6% in September. Sumitomo Mitsui Financial Group first half profit fell 51% on credit market losses rose to 302 billion yen.

UK stocks rose despite the European Union economies shrank for the second quarter in a row. Germany led the region with the sharpest decline followed by shrinks in Italy and Ireland. Stocks in London rose 1.5%. Energy stocks lead the gainers. Luxury home prices in London on the decline.

Stocks in Mumbai continue trade volatile with a downward bias. Rupee lost nearly 2.75% this week and traded near 49 rupees to a dollar. Automakers and real estate stocks fell on the weak demand. United Spirits and Diageo Plc explore partnership possibilities.

Stocks in Australia gained 1.4% but fell more than 7% in the week. Australian dollar gained but remained vulnerable to global economic slowdown. Commodities and energy stocks rallied on higher oil prices. Australia bought A$500 million of mortgage backed securities.

North American Markets

Dow Jones Industrial Average dropped 337.94 or 3.8% to a close of 8,497.31, S&P 500 Index closed down 38.00 or 4.2% to 873.29, and Nasdaq Composite Index declined 79.85 or 5% to close at 1,516.85. In Toronto, TSX Composite Index declined 296.82 or 3.2% to 9,055.96.

Of the 30 stocks in Dow Jones Industrial Average 2 closed higher and 28 closed lower.

Intel Corp led the decliners in the Dow index with a fall of 7.7% followed by decreases in Home Depot Inc of 7.6%, in JP Morgan Chase of 7.3%, in Du Pont of 6.4%, in Caterpillar Inc of 6% and in Microsoft Corp of 4.1%.

General Motors dropped the most in the Dow with a rise of 2.1% and Citigroup Inc declined 0.7%.

Of the stocks in S&P 500 index, 36 increased, 462 decreased and one was unchanged. Of the index stocks, 6 rose more than 3%, 370 fell more than 3% and 36 dropped above 10%.

Liz Claiborne led decliners in the S&P 500 index with a plunge of 26% followed by losses in Prologis of 25.7%, in Apartment Investment of 21%, in Abercrombie & Fitch of 20.7%, in Office Depot Inc of 16.8% and in Jones Apparel of 15.7%.

Hartford Financial Services led the gainers in the S&P 500 index with a surge of 21% followed by gains in Dell Inc of 6%, in Sunoco Inc of 5.4%, in Dean Foods of 3.9%, Aon Corp of 3.9%, in Viacom Inc of 3.2%, in CBS Corp of 2.9% and in Covidien Ltd of 2.8%.

South American Markets Indexes

Colombia led the gainers in the South American markets with a fall of 3.2% followed by increases in Venezuela of 1.3%, Chile of 0.94% and in Argentina of 0.7%.

Peru led the decliners in the region with a loss of 2% followed by declines in Mexico of 0.8% and in Brazil of 0.6%.

Europe Markets Review

In London FTSE 100 Index closed higher 66.07 or 1.58% to 4,235.28, in Paris CAC 40 Index increased 31.33 or 0.96% to close at 3,300.79 and in Frankfurt DAX index higher 84.71 or 1.82% to close at 4,734.23. In Zurich trading SMI increased 98.53 or 1.72% to close at 5,838.57.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 223.75 or 2.72% to 8,462.39, Hang Seng index in Hong Kong increased 321.31 or 2.43% closed to 13,542.66 CSI 300 index in China higher 69.57 or 3.71% closed to 1,943.65. ASX 200 index in Australia increased 50.80 or 1.37% to close 3,748.10. The KL Composite index in Malaysia higher 1.06 or 0.12% closed to 881.65.

The Kospi Index in South Korea decreased 0.18 or 0.02% to close at 1,088.26. SET index in Thailand closed lower 3.50 or 0.81% to 429.97 and JSE Index in Indonesia increased 4.66 or 0.37% to 1,264.38. The Sensex index in India decreased 150.91 or 1.58% closed to 9,385.42.

Commodities, Metals, and Currencies

Crude oil decreased $1.92 to close at $56.32 a barrel for a front month contract, natural gas increased 2 cents to $6.34 per mBtu and gasoline futures decreased 6.89 cents to close at 123.35 cents per gallon.

Wheat futures closed up 15.75 cents in Chicago trading and closed at $5.74 a bushel. Sugar increased 0.23 cent to 11.65 cents a pound. Soybean future closed up 2 cents to $8.96 a bushel.

Gold increased $37.60 in New York trading to close at $742.60 per ounce, silver closed down 47 cents to $9.75 per ounce and copper for the front month delivery increased 7.30 cent to $1.7030 per pound.

Dollar edged lower against euro to $1.2598 and fell against yen to 97.13.

Yields on 10-year U.S. bonds dropped to 3.72% and with 30-year maturities decreased to 4.22%.