logo
  Join        Login             Stock Quote

Wall Street Slides On Record AIG Loss, Dow Ends Below 6800, Citi Sinks

 March 02, 2009 05:22 PM
 




US stocks tumbled on Monday after AIG's massive quarterly losses intensified worries over the health of the financial system.      

The Dow Jones Industrial Average tumbled 299.64 points or 4.24% to finish at 6,763.29. The S&P 500 sank 34.27 or 4.66% to 700.82. The Nasdaq Composite plunged 54.99 points or 3.99% to 1,322.85.

Early on Monday, American International Group Inc (NYSE: AIG) reported a fourth quarter loss of $61.7 billion or $22.95 a share- the biggest in corporate history of US. The troubled insurer posted a loss of $5.29 billion in prior year quarter. Meanwhile, the Treasury Department and the Federal Reserve Board announced on Monday revised rescue deal for the embattled company under which it will receive further $30 billion from the government. Shares of AIG closed unchanged at 42 cents.

The Sage of Omaha, Warren Buffett's comment that "the economy will be in shambles throughout 2009" also pressurized stocks.

Shares of financials were hammered. Citigroup (NYSE: C) sank 30 cents or 20% to $1.20. Bank of America (NYSE: BAC) plunged 32 cents or 8.10% to $3.63. JP Morgan & Chase & Co (NYSE: JPM) tumbled $1.69 or 7.40% to $21.16.Wells Fargo (NYSE: WFC) plummeted $1.26 or 10.41% to $10.84.Morgan Stanley (NYSE: MS) lost $1.59 or 8.14% to end at $17.95. Goldman Sachs (NYSE: GS) finished at $86.27, down $4.81 or 5.28%.

Early on Monday, PNC Financial Services Group Inc. (NYSE: PNC) announced that it would slash the quarterly dividend on its common shares to 10 cents from 66 cents. Shares of the company retreated $1.22 or 4.46% to $26.12.

Insurance stocks were battered. Hartford Financial Services Group Inc. (NYSE: HIG) slid 99 cents or 16.23% to $5.11. MetLife Inc. (NYSE: MET) dropped $1.95 or 10.56% to $16.51.

Shares of General Electric Co. (NYSE: GE) declined 91 cents or 10.69% to $2.01. On Friday, the diversified US firm cut its quarterly dividend by 68% to 10 cents a share from 31 cents.

Struggling US automaker General Motors (NYSE: GM) slumped 24 cents or 10.67% to $2.01.

Aluminum maker Alcoa Inc. (NYSE: AA) skidded 74 cents or 11.88% to $5.49. Shares of equipment maker Caterpillar (NYSE: CAT) lost $2.47 or 10.04% to finish at $22.14.

Among energy stocks, Exxon Mobil Corp. (NYSE: XOM) fell $2.99 or 4.40% to $64.91. Chevron Corp. (NYSE: CVX) declined $3.09 or 5.09% to $57.62.

Shares of International Paper Co. (NYSE: IP) decreased 57 cents or 10.02% to $5.12 after it said that it would slash quarterly dividends 2.5 cents a share from 25 cents.

On the earnings front, Echostar Corp. (NASDAQ: SATS) posted a fourth-quarter loss of $690 million, or $7.73 a share, compared to a loss of $45 million, or 51 cents a share in the year ago quarter. Revenue jumped to $496 million from $361 million. Shares of the company lost $1.44 or 8.79% to end at $14.94.

Meanwhile, chipmaker Spansion Inc (NASDAQ: SPSN) on Sunday filed for bankruptcy protection in a U.S. court.

Shares also retreated as dismal economic data dampened sentiment.

According to Commerce Department, construction spending fell 3.3% in January, worse than the consensus estimates of 1.5%.

The Institute for Supply Management said that its manufacturing index increased marginally to 35.8 from 35.6 in January. Economists had projected a reading of 33.8. A reading below 50 indicates contraction.

The US Commerce Department said that consumer spending climbed 0.6% in January, better than the 0.4% increase expected by economists. Personal income rose 0.4%. Economists had expected personal income to decrease 0.2% in the month.

European stocks settled with substantial losses. The U.K. FTSE slumped 204.26 points or 5.33% to close at 3,625.83. The German DAX and French CAC lost 3.48% and 4.46% respectively.

Asian stocks finished with steep losses. The Nikkei 225 plunged 288.27 points or 3.81% to 7,280.15. The Hang Seng index of Hong Kong tumbled 494.11 points or 3.86% to 12,317.46.

NYMEX crude oil for April delivery declined $4.39 to $40.37 settle at barrel.
 
Disclosure: Author does not own any of the stocks discussed here.


iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.