ID :
18754
Wed, 09/10/2008 - 10:20
Auther :
Shortlink :
http://m.oananews.org//node/18754
The shortlink copeid
Wall street closing
Washington, September 09, SPA -- Stocks plummeted Tuesday, erasing
most of the previous session’s gains, as concerns about Lehman
Brothers’ ability to raise capital and the extent of AIG’s
mortgage-related loses intensified fears about a possible U.S.
recession.
Insurers and regional banks fell following the government rescue of
mortgage-finance giants Fannie Mae and Freddie Mac, and declining oil
prices added to worries about the slowing global economy.
Shares of Lehman Brothers fell 45 percent on concerns that it will
face difficulties raising capital now that talks with state-run Korea
Development Bank have ended. Among other financial stocks falling,
Washington Mutual lost 21 percent, Wachovia lost 13 percent, and
Merrill Lynch lost 10 percent.
In economic news, U.S. pending home sales fell 3.2 percent in July
after rising the previous month, the National Association of Realtors
reported. Meanwhile, federal officials warned Tuesday that the
budget deficit will be substantially higher this year, rising $246
billion to $407 billion, reflecting the weak U.S. economy.
Oil prices closed at a five-month low Tuesday on bets that OPEC,
meeting in Vienna, will hold production levels steady despite the
recent price slide. Also impacting prices were signs that Hurricane
Ike is weakening and is less likely to cause severe damage to oil
facilities in the Gulf of Mexico. Light sweet crude for October
delivery fell $3.08 to $103.26 a barrel on the New York Mercantile
Exchange. The U.S. dollar fell versus the euro and the yen.
The Dow Jones industrial average fell 280.01, or 2.4 percent, to
11,230.73. Shares of insurance giant AIG fell 20 percent. Citigroup
shares lost 7 percent, Bank of America lost 6 percent, and American
Express and J.P. Morgan each lost 5 percent. McDonald’s shares rose
1.6 percent on strong August sales at the fast-food chain.
The broader Standard & Poor’s 500 index fell 43.28, or 3.4 percent,
to 1,224.51. The technology-heavy Nasdaq composite index fell 59.59,
or 2.6 percent, to 2,209.81. Apple announced a new version of iTunes
and new models of its iPods, but its shares fell. Dell founder
Michael Dell bought $100 million in Dell shares last week, but shares
of the computer maker fell in the afternoon.
The New York Stock Exchange composite index fell 297.47 to 7,871.15.
The American Stock Exchange composite index fell 54.28 to 1,867.28.
And the Russell 2000 index fell 25.57 to 707.29.
--SPA
most of the previous session’s gains, as concerns about Lehman
Brothers’ ability to raise capital and the extent of AIG’s
mortgage-related loses intensified fears about a possible U.S.
recession.
Insurers and regional banks fell following the government rescue of
mortgage-finance giants Fannie Mae and Freddie Mac, and declining oil
prices added to worries about the slowing global economy.
Shares of Lehman Brothers fell 45 percent on concerns that it will
face difficulties raising capital now that talks with state-run Korea
Development Bank have ended. Among other financial stocks falling,
Washington Mutual lost 21 percent, Wachovia lost 13 percent, and
Merrill Lynch lost 10 percent.
In economic news, U.S. pending home sales fell 3.2 percent in July
after rising the previous month, the National Association of Realtors
reported. Meanwhile, federal officials warned Tuesday that the
budget deficit will be substantially higher this year, rising $246
billion to $407 billion, reflecting the weak U.S. economy.
Oil prices closed at a five-month low Tuesday on bets that OPEC,
meeting in Vienna, will hold production levels steady despite the
recent price slide. Also impacting prices were signs that Hurricane
Ike is weakening and is less likely to cause severe damage to oil
facilities in the Gulf of Mexico. Light sweet crude for October
delivery fell $3.08 to $103.26 a barrel on the New York Mercantile
Exchange. The U.S. dollar fell versus the euro and the yen.
The Dow Jones industrial average fell 280.01, or 2.4 percent, to
11,230.73. Shares of insurance giant AIG fell 20 percent. Citigroup
shares lost 7 percent, Bank of America lost 6 percent, and American
Express and J.P. Morgan each lost 5 percent. McDonald’s shares rose
1.6 percent on strong August sales at the fast-food chain.
The broader Standard & Poor’s 500 index fell 43.28, or 3.4 percent,
to 1,224.51. The technology-heavy Nasdaq composite index fell 59.59,
or 2.6 percent, to 2,209.81. Apple announced a new version of iTunes
and new models of its iPods, but its shares fell. Dell founder
Michael Dell bought $100 million in Dell shares last week, but shares
of the computer maker fell in the afternoon.
The New York Stock Exchange composite index fell 297.47 to 7,871.15.
The American Stock Exchange composite index fell 54.28 to 1,867.28.
And the Russell 2000 index fell 25.57 to 707.29.
--SPA
