S&P 500, Nasdaq Add to 8% Decline in a Month

123jump.com Staff
08 Feb, 2010
New York City

U.S. stocks lost ground at close ahead of the Treasury auction of $81 billion of bonds and notes this week. Commodities advanced and the dollar declined for the first time in four days. Toyota recall costs could be more than $2 billion estimated by the company.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks lost ground at close ahead of the Treasury auction of $81 billion of bonds and notes this week. Commodities advanced and the dollar declined for the first time in four days. Toyota recall costs could be more than $2 billion estimated by the company.[/R]

U.S. stocks traded sideways in the morning and searched for lower bottom at close. Commodities advanced and the dollar edged lower for the first in four days. Lingering worries over budget deficits at smaller nations in Europe kept the euro under pressure.

The broader indexes the S&P 500 and the Nasdaq declined at least 8.4% in the last four weeks.

U.S. Fed is expected to offer its plan to unwind several debt programs this week. CIT appoints ex-Merrill Lynch chief as its new leader.

U.S. Treasury is scheduled to sell $81 billion in notes and bonds this week matching its earlier record of weekly auction. Bond yields edged slightly higher ahead of auction.

Hasbro, Inc led gainers in the S&P 500 index with a rise of 14% after sales increased 12% and guided higher earnings in the year. CVS Caremark gained on the quarterly earnings increase. Loews Corp and CNA Financial Corp swing to the fourth quarter profit.

In London trading mining stocks led the gainers and insurance companies led the decliners. Xstrata reinstated its dividend and Randgold lifted dividend by 30%. Anglo American said it will take its full share of rights offering from Anglo Platinum Ltd.

North American Markets

Dow Jones Industrial Average decreased 103.84 or 1.1% to a close of 9,908.39, S&P 500 Index edged lower 9.45 or 0.9% to 1,056.74, and Nasdaq Composite Index decreased 15.07 or 0.7% to close at 2,126.05. Toronto TSX Composite Index decreased 107.82 or 1% to 11,115.30.

Latin American Markets Indexes

Mexico Bolsa Index added 18.71 or 0.06% to 30,649.44 and Brazil Bovespa Stock Index added 390.39 or 0.62% to 63,153.09.

Europe Markets Review

In London FTSE 100 Index closed higher 31.41 or 0.62% to 5,092.33, in Paris CAC 40 Index increased 43.51 or 1.22% to close at 3,607.27, in Frankfurt DAX index higher 50.51 or 0.93% to close at 5,484.85. In Zurich trading SMI increased 82.81 or 1.32% to close at 6,347.14.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 105.27 or 1.05% to 9,951.82, and Hang Seng index in Hong Kong decreased 114.19 or 0.58% to 19,550.89, and CSI 300 index in China lower 2.10 or 0.07% to 3,150.99. ASX 200 index in Australia increased 7.30 or 0.16% to 4,521.40. The FTSE Bursa KL Composite index in Malaysia was lower 12.68 or 1.02% to 1,235.22.

The Kospi Index in South Korea decreased 14.33 or 0.91% to close at 1,552.79. SET index in Thailand closed lower 3.32 or 0.48% to 688.09. JSE Index in Indonesia decreased 43.40 or 1.72% to 2,475.57. The Sensex index in India increased 19.96 or 0.13% to 15,935.61.

Commodities, Metals, and Currencies

Crude oil decreased $0.47 to $71.66 a barrel for a front month contract, natural gas edged down 11 cents to $5.40 per mBtu and gasoline increased 0.34 cents to 188.98 cents.

Soybean future closed up 16 cents to $9.29 a bushel. Wheat futures closed up 10.75 cents in Chicago trading to $4.84 a bushel. Sugar closed up 0.43 cents at 26.60 cents.

Gold increased $11.60 in New York trading to close at $1,064.40 per ounce, silver closed up $0.21 to $15.04 per ounce and copper for the front month delivery increased 2.95 cent to $2.887 per pound.

Dollar closed lower against euro to $1.3652 and edged lower against the Japanese yen to 89.29.

Yield on 10-year U.S. bonds closed unchanged to 3.57% and with 30-year maturities closed down at 4.50%.