Markets were down on Monday to begin the first full trading week of the year. The Dow Jones Industrial Average was lower by 81 points, and closed the day at 8,952 points. The Nasdaq composite index fell 4 points, and finished with 1,628 points, while the S&P 500 index was down 4 points as well, and finished at 927 points. The Russell 2000 index showed a loss of less than 1 point, and closed at 505 points. Bond prices were lower as the yield on the 10-year Treasury note went up to 2.46%, and the yield on the three-month T-bill went up to 0.08%. International markets were higher as Britain’s FTSE 100 added 0.39% and Japan’s Nikkei 225 added 2.07%.
Oil prices rose $2.47 and settled at $48.81 per barrel as tensions grow everyday in Gaza. Gasoline and heating oil futures were up and finished at $1.18 and $1.58 per gallon respectively. Natural gas was also higher on the NYMEX, as it closed at $6.07 on Monday.
The auto industry suffered a decline in sales by 36% during the month of December. Even despite huge rebates and zero-percent financing, consumers just didn’t show up to buy vehicles at the end of last year.
In corporate news, Apple Inc (AAPL: 94.58, +3.83 (+4.22%)) CEO Steve Jobs has said that he is being treated for a hormone imbalance, but is well enough to continue operating at his current post. Jobs is a survivor of pancreatic cancer. His health report gave Apple’s shares a boost in trading.
Cigna Corp. (CI: 18.15, +0.36 (+2.02%)) announced that it will reduce its overall workforce by 4% or 1100 jobs due to the state of the economy. The cuts should cost close to $40 million of fourth quarter after-tax profit. Pfizer Inc. (PFE: 18.16, -0.11 (-0.60%)) is reportedly looking into a merger deal with another large player according to an interview with Pfizer CEO Jeff Kindler and The “Financial Times.”
-Hassan Chaudhry
Disclosure: None
