Stocks, Metals Drop on China; AmEx Falls

123jump.com Staff
22 Jan, 2010
New York City

Prospects of higher rates in China, India, Korea and Australia prompted fresh worries on global growth. President Obama

[R]10:30 AM New York – Prospects of higher rates in China, India, Korea and Australia prompted fresh worries on global growth. President Obama’s plan to limit risk taking at banks dragged financial stocks lower. Commodities declined on tighter monetary conditions in Asia. Google, AMD fall and McDonald’s rises on earnings.[/R]

Stocks in New York traded lower for the second day after President Obama proposed a plan to limit risk taking by banks that may lead to sale or segregation of certain trading and investing activities.

Three popular indexes, the Dow, the S&P and Nasdaq 100 declined more than 0.6% after one hour of trading. Indexes in Brazil and Mexico dropped more than 1.4%.

One euro fetched $1.41 and one dollar traded at 90.12 yen. The euro rose fractionally after trading near two-month lows. Gold, copper and crude oil declined.

Crude oil futures decreased $1.12 to $74.96, gold fell $15.80 to $1,087.40 and natural gas edged up 16 cents to $5.78 per mBtu.

Yields on 10-year bonds were at 3.60% and 30-year bonds at 4.51%.

Prospects of higher rates in Asia are rising after China reported a surge in economic activities and inflation in India soared. India, Korea, Taiwan are expected to increase fir the first time in several years and Australia is expected to increase rates as the economy retains its vigor.

Earnings Review

Google Inc., the search engine said fourth quarter revenues rose 17% to $6.67 billion from $5.70 billion a year ago. Net income in the quarter rose 416% to $1.97 billion or $6.13 per diluted share compared to net income of $382.4 million or $1.21 per share a year ago.

American Express Company, the credit card company said fourth quarter revenues fell 0.3% to $6.49 billion from $6.51 billion a year ago. Net income in the quarter rose 198% to $716 million or 60 cents per diluted share compared to net income of $240 million or 21 cents per share a year ago.

Advanced Micro Devices, Inc., the maker of computer microprocessors said fourth quarter revenues rose 42% to $1.65 billion from $1.16 billion a year ago. Net income in the quarter was $1.2 billion or $1.52 per diluted share compared to net loss of $1.4 billion or $2.36 per share a year ago.

Capital One Financial Corporation, the credit card and banking company said fourth quarter net interest income rose 8.3% to $1.95 billion from $1.80 billion a year ago. Net income in the quarter was $375.6 million or 83 cents per diluted share compared to net loss of $1.45 billion or $3.74 per share a year ago.

General Electric Company, the technology, media and financial services company reported fourth quarter sales fell 10.3% to $41.4 billion from $46.2 billion a year ago. Net income in the quarter fell 19.4% to $2.94 billion or 28 cents per diluted share compared to net income of $3.65 billion or 35 cents per share a year ago.

Net sales for the fiscal year 2009 fell 14% to $156.8 billion from $182.5 billion a year ago. Net income for the year fell 38% to $10.7 billion or $1.01 per diluted share compared to net income of $17.3 billion or $1.72 per share a year ago.