Portfolio Crafter
10-16-2007, 01:35 AM
End of Day Market Summary - Monday, October 15, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks thudded lower with record oil prices catching negative attention from investors also contending with a warning from Citigroup Inc. that the credit crunch could harm fourth-quarter results of the nation's largest bank. The Dow posted its biggest one-day loss in more than a month, after news that Citigroup, JP Morgan and Bank of America were setting up a debt rescue fund.
The Dow Jones industrial average closed down 108.28 or 0.77% to 13,984.80, the broader S&P 500 closed down 13.09 or 0.84% to 1,548.71, and the tech-fueled Nasdaq composite closed down 25.63 or 0.91% to 2,780.05.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers 2 to 1 as nearly 1.2 billion shares changed hands. On the Nasdaq, losers topped winners by 5 to 2 on volume of 2.0 billion shares.
The announcement that a group of large financial institutions is creating a fund to clean up the credit markets was "one of the positive moves in the right direction to shore up things in the credit markets. The soaring price of oil weighed on the market, along with the slumping real estate market and the tight credit market. The NY Empire State index, a regional manufacturing report, rose to 28.8 in October from 14.7 in the previous month. Economists surveyed thought it would fall to 14. The report seemed to furthered bets that the economy is holding up well enough that the Federal Reserve will not need to cut interest rates at its policy-setting meeting later this month
Shares of Citigroup Inc closed down $1.63 oe 3.41% to $46.24, after reporting that profit for the third quarter fell 57% after accounting for previously announced write-downs for bad loans and other credit issues. The third-quarter net income slipped to $2.38 billion, down from $5.51 billion in the same period a year ago. Its quarterly revenue was $22.66 billion, up from $21.42 billion last year.
Stock of Medtronic closed down $6.33 or 11.24% to $50.00, after it stopped distribution of the wires that connect defibrillators to patients' hearts on news that the wires may have caused five deaths. The company warned of related second-quarter revenue shortfalls and repercussions to its position in the Japanese market.
Shares of Oracle closed down $0.37 or 1.65% to $22.07, after it made a $6.7 billion bid for software maker BEA Systems. This represents a 25% premium over its previous close. But BEA Systems issued a statement in which it announced it had rejected the offer. It is expected that the bidding war between Oracle and SAP will take the price of BEA as high as $21.
Stock of Tektronix closed up $9.51 or 33.56% to $37.85, after conglomerate Danaher said it was buying the test and measurement gear maker for about $2.8 billion.
Shares of Biogen Idec closed up $13.08 or 18.84% to $82.51, after the biotech said lthat it may put itself up for sale to activist investor Carl Icahn, among others.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks thudded lower with record oil prices catching negative attention from investors also contending with a warning from Citigroup Inc. that the credit crunch could harm fourth-quarter results of the nation's largest bank. The Dow posted its biggest one-day loss in more than a month, after news that Citigroup, JP Morgan and Bank of America were setting up a debt rescue fund.
The Dow Jones industrial average closed down 108.28 or 0.77% to 13,984.80, the broader S&P 500 closed down 13.09 or 0.84% to 1,548.71, and the tech-fueled Nasdaq composite closed down 25.63 or 0.91% to 2,780.05.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers 2 to 1 as nearly 1.2 billion shares changed hands. On the Nasdaq, losers topped winners by 5 to 2 on volume of 2.0 billion shares.
The announcement that a group of large financial institutions is creating a fund to clean up the credit markets was "one of the positive moves in the right direction to shore up things in the credit markets. The soaring price of oil weighed on the market, along with the slumping real estate market and the tight credit market. The NY Empire State index, a regional manufacturing report, rose to 28.8 in October from 14.7 in the previous month. Economists surveyed thought it would fall to 14. The report seemed to furthered bets that the economy is holding up well enough that the Federal Reserve will not need to cut interest rates at its policy-setting meeting later this month
Shares of Citigroup Inc closed down $1.63 oe 3.41% to $46.24, after reporting that profit for the third quarter fell 57% after accounting for previously announced write-downs for bad loans and other credit issues. The third-quarter net income slipped to $2.38 billion, down from $5.51 billion in the same period a year ago. Its quarterly revenue was $22.66 billion, up from $21.42 billion last year.
Stock of Medtronic closed down $6.33 or 11.24% to $50.00, after it stopped distribution of the wires that connect defibrillators to patients' hearts on news that the wires may have caused five deaths. The company warned of related second-quarter revenue shortfalls and repercussions to its position in the Japanese market.
Shares of Oracle closed down $0.37 or 1.65% to $22.07, after it made a $6.7 billion bid for software maker BEA Systems. This represents a 25% premium over its previous close. But BEA Systems issued a statement in which it announced it had rejected the offer. It is expected that the bidding war between Oracle and SAP will take the price of BEA as high as $21.
Stock of Tektronix closed up $9.51 or 33.56% to $37.85, after conglomerate Danaher said it was buying the test and measurement gear maker for about $2.8 billion.
Shares of Biogen Idec closed up $13.08 or 18.84% to $82.51, after the biotech said lthat it may put itself up for sale to activist investor Carl Icahn, among others.
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