Stocks extend slide on lack of positive news Stocks extend slide on decline in factory orders, disappointment over China stimulus
- Madlen Read, AP Business Writer - Thursday March 5, 2009, 11:18 am EST - Yahoo! Buzz<http://buzz.yahoo.com/article/y_finance/yahoo_finance%252Fyfi-14553816> - Print<http://finance.yahoo.com/news/Stocks-extend-slide-after-apf-14553816.html/print> Related: - Bank of America Corporation <http://finance.yahoo.com/q/h?s=bac> - , JPMorgan Chase & Co. <http://finance.yahoo.com/q/h?s=jpm> - , Limited Brands Inc. <http://finance.yahoo.com/q/h?s=ltd> NEW YORK (AP) -- Investors are having another change of heart and are selling stocks once again as a brief burst of optimism disappeared. Related Quotes Symbol Price Change BAC <http://finance.yahoo.com/q?s=BAC> 3.33 -0.26 [image: Chart for BK OF AMERICA CP] <http://finance.yahoo.com/q?s=BAC> JPM <http://finance.yahoo.com/q?s=JPM> 17.95 -1.35 [image: Chart for JP MORGAN CHASE CO] <http://finance.yahoo.com/q?s=JPM> LTD <http://finance.yahoo.com/q?s=LTD> 6.64 -0.38 [image: Chart for LIMITED BRANDS INC] <http://finance.yahoo.com/q?s=LTD> WFC <http://finance.yahoo.com/q?s=WFC> 8.23 -1.43 [image: Chart for WELLS FARGO & CO NEW] <http://finance.yahoo.com/q?s=WFC> WMT <http://finance.yahoo.com/q?s=WMT> 50.58 +2.09 [image: Chart for WAL MART STORES] <http://finance.yahoo.com/q?s=WMT> {"s" : "bac,jpm,ltd,wfc,wmt","k" : "c10,l10,p20,t10","o" : "","j" : ""} Stocks fell after China deflated investors' hope that it would take new steps to stimulate its economy, while more disheartening U.S. data added to the market's gloom. Chinese Premier Wen Jiabao said his government's current stimulus plan would help the world's third-largest economy grow by 8 percent this year, but he stopped short of promising new steps. The hope that China would unveil more government spending to help its economy was a major factor behind the market's bounce Wednesday, which sent the Dow Jones industrials up nearly 150 points. The rally followed a five-day pummeling that left the market at its lowest levels since 1997. "Comments from Chinese officials suggest that maybe the reason for the rally yesterday was not on a sound footing," said Alan Skrainka, chief market strategist at Edward Jones. A better-than-expected report on U.S. factory orders offered investors little comfort. The Commerce Department said demand for manufactured goods fell by 1.9 percent during the first month of the year. While this was better than the 3.5 percent drop economists had expected, it marked a record sixth straight month of declines. Another piece of gloomy news: General Motors said in its annual report that auditors raised serious doubt about the automaker's ability to continue operating. GM has already received $13.4 billion in federal loans, and is seeking a total of $30 billion from the government. GM fell 32 cents, or 14.5 percent, to $1.88. "We have the same story," Skrainka said. "We have concerns about the stability of the financial system, concerns about the economy getting worse, and just a lack of confidence." In morning trading, the Dow Jones industrial average fell 195.30, or 2.8 percent, to 6,680.54. Broader stock indicators also fell. The Standard & Poor's 500 index fell 22.90, or 3.2 percent, to 689.97, and the Nasdaq composite index fell 35.66, or 2.6 percent, to 1,318.08. The Russell 2000 index of smaller companies fell 14.75, or 4 percent, to 356.55. On the New York Stock Exchange 2,609 stocks fell, while only 301 advanced. Volume came to 395.1 million shares. Investors moved out of stocks and back into safer assets like Treasurys and gold. Government data showing that initial unemployment claims fell more than anticipated last week failed to buoy stocks. Economists surveyed by Thomson Reuters/IFR predict the Labor Department on Friday will report that U.S. employers slashed 648,000 jobs in February -- more than the 598,000 jobs cut in January. "We know that there are lots of job losses," said independent market analyst Edward Yardeni. "The initial claims data didn't change that perception." Rising unemployment is of particular concern because it means many consumers have less to spend. And consumer spending, which accounts for more than two-thirds of U.S. economic activity, is crucial to helping the economy turn around. While some retailers on Thursday posted improving sales figures, the reports were not enough to stoke confidence in the market. Wal-Mart Stores Inc.'s sales jump in February beat expectations and the company raised its dividend. Other retailers such as Wet Seal Inc. and Limited Brands Inc. posted declines that were narrower than anticipated. Wal-Mart rose $2.25, or 4.6 percent, to $50.74. Wet Seal rose 21 cents, or 9.7 percent, to $2.38, while Limited slipped 2 cents to $7. Financial stocks suffered more losses Thursday after Moody's Investors Service said concerns about capital levels may lead it to downgrade the ratings of Bank of America Corp. and Wells Fargo & Co. The ratings agency also lowered the outlook on JPMorgan Chase & Co.'s ratings to negative. Bank of America shares dropped 23 cents, or 6.4 percent, to $3.36; Wells Fargo plunged $1.35, or 14 percent, to $8.31; JPMorgan shed $1.16, or 6 percent, to $18.13. Government bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.89 percent from 2.98 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.23 percent from 0.25 percent Wednesday. Gold prices advanced, even as the dollar rose against other major currencies. Light, sweet crude fell 88 cents to $44.50 a barrel on the New York Mercantile Exchange. Markets overseas were mostly lower. In afternoon trading, Britain's FTSE 100 fell 2.29 percent, Germany's DAX index fell 2.87 percent, and France's CAC-40 fell 2.49 percent. Earlier, Japan's Nikkei stock average rose 1.95 percent after Wall Street's Wednesday rally, but Hong Kong's Hang Seng index fell 0.97 percent. New York Stock Exchange: http://www.nyse.com<http://us.lrd.yahoo.com/_ylt=AotcPVsvsWtQvlfZbkeUj57yKIkA/SIG=10pot72t4/**http%3A//www.nyse.com/> Nasdaq Stock Market: http://www.nasdaq.com<http://us.lrd.yahoo.com/_ylt=AoXIl1rDHa_54eG0Xta5sOvyKIkA/SIG=10r36hgb9/**http%3A//www.nasdaq.com/> --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
