Nasdaq Drop of 3% Lead U.S. Stocks Decline

123jump.com Staff
01 Oct, 2009
New York City

U.S. stocks dropped across sectors as nervous investors doubted the health of the economic recovery. Weak job market and manufacturing gave impetus to the market decline. Technology heavy Nasdaq index dropped 3%.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks dropped across sectors as nervous investors doubted the health of the economic recovery. Weak job market and manufacturing gave impetus to the market decline. Technology heavy Nasdaq index dropped 3%.[/R]

U.S. stocks declined after weak manufacturing report and rising unemployment claims put investors on an alert. Microsoft decreased after Goldman removed the company from its recommendation list. Euro declined and German retail sales fell 1.5% in August.

Weak manufacturing report sent another alert to investors that the pace of U.S. economic recovery is likely to be weak. Manufacturing activity expanded but at a slower pace in September. Construction spending increased in August and weekly jobless claims advanced.

Looking ahead investors are now nervously anticipating jobless rate report on Friday.

Tech stocks fell in the market sell off as investors surmised slower capital spending in the next two quarters. Cisco Systems acquired Norway based video conferencing service provider Tandberg for $3 billion.

Microsoft fell after Goldman Sachs cautioned on fiscal first quarter earnings. Comcast declined and the cable network operator denied that it is in talks to buy NBC Universal stake. MetroPCS fell on a downgrade. Penske Automotive dropped after it ended talks with GM.

UK stocks decreased after a manufacturing index showed a decline in activities in September. BAE Systems may be fined several million pounds on allegation of new contract bribery in EU and Africa. Domino''s Pizza UK delivered better than expected earnings.

European markets edged lower between 1% and 2% after rising at the sharpest pace in the third quarter in ten years. Lufthansa AG is in talks to acquire 20% stake in UK based airline BMI held by SAS. Euro traded lower as central bankers talk up dollar.

North American Markets

Dow Jones Industrial Average decreased 203.00 or 2.1% to a close of 9,509.28, S&P 500 Index fell 27.23 or 2.6% to 1,029.85, and Nasdaq Composite Index declined 64.94 or 3.1% to close at 2,057.48. Toronto TSX Composite Index decreased 323.20 to 11,071.76.

Of the stocks in S&P 500 index, 22 increased, 477 declined and 1 was unchanged.

MBIA Inc led the decliners in the S&P 500 index with a loss of 10.6% followed by losses in MetroPCS Communications, Inc of 9.3%, in Eastman Kodak of 9.2%, in Zions Bancorp of 8.8% and in E*Trade Financial of 8.6%.

Constellation Brands, Inc led gainers in the S&P 500 index with a rise of 5.4% followed by gains in Time Warner Inc 4.4%, in Hershey Company of 2.5%, in Big Lots, Inc of 2.1% and in Dean Foods Company of 2.1%.

South American Markets Indexes

Mexico Bolsa Index decreased 643.98 or 2.2% to 28,588.26 and Brazil Bovespa Stock Index decreased 1,058.56 or 1.7% to 60,459.33.

Argentina Merval Index closed down 2.5% and Chile Stock Market Select index decreased 0.6%, Peru Lima General Index edged down 2.1% and Colombia IGBC General Index decreased 0.9%.

Europe Markets Review

In London FTSE 100 Index closed lower 86.09 or 1.68% to 5,047.81, in Paris CAC 40 Index decreased 74.64 or 1.97% to close at 3,720.77, in Frankfurt DAX index lower 120.61 or 2.13% to close at 5,554.55. In Zurich trading SMI decreased 68.01 or 1.08% to close at 6,255.17.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 154.59 or 1.53% to 9,978.64, ASX 200 index in Australia decreased 42.50 or 0.90% to 4,701.10. The FTSE Bursa KL Composite index in Malaysia was higher 6.27 or 0.52% to 1208.35. Hang Seng index in Hong Kong, and CSI 300 index in China were closed today.

The Kospi Index in South Korea decreased 28.51 or 1.70% to close at 1,644.63. SET index in Thailand closed higher 9.84 or 1.37% to 726.91. JSE Index in Indonesia increased 10.38 or 0.42% to 2,477.97. The Sensex index in India increased 7.71 or 0.05% to 17,134.55.

Commodities, Metals, and Currencies

Crude oil decreased $0.29 to $70.32 a barrel for a front month contract, natural gas edged down 39 cents to $4.46 per mBtu and gasoline decreased 0.12 cents to 175.04 cents.

Soybean future closed lower 9 cents to $9.18 a bushel. Wheat futures closed down 4.75 cents in Chicago trading to $4.52 a bushel. Sugar edged down 0.75 cents a pound to 24.64 cents.

Gold decreased $9.50 in New York trading to close at $999.80 per ounce, silver closed down $0.27 to $16.38 per ounce and copper for the front month delivery decreased 10.3 cent to $2.715 per pound. Gold gained 8.75% in the third quarter.

Dollar edged higher against euro to $1.454 and closed lower against the Japanese yen to 89.68.

Yield on 10-year U.S. bonds decreased to 3.18% and with 30-year maturities decreased to 3.96%.