Portfolio Crafter
10-17-2007, 08:34 AM
End of Day Market Summary - Tuesday, October 16, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed lower ahead of key technology results as investors contended with warnings from financial institutions that the recent credit crunch would dent earnings in the fourth quarter. Soaring oil prices added to the mayhem as investors digested more troubling news from the already battered housing sector.
The Dow Jones industrial average closed down 71.86 or 0.51% to 13,912.94, the broader S&P 500 closed down 10.18 or 0.66% to 1,538.53, and the tech-fueled Nasdaq composite closed down 16.14 or 0.58% to 2,763.91.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers by more than 2 to 1 as 1.3 billion shares changed hands. On the Nasdaq, losers topped winners 9 to 5 on volume of 2.0 billion shares.
Oil getting close to $90 a barrel received a lot of attention from investors as well as portfolio managers. They opine that inflation could be a problem that could hurt the economy. The National Association of Home Builders reported that its monthly survey of builder confidence fell to its worst record during October, while the outlook for the future also remained at a record low.
Additionally, Federal Reserve Chairman Ben Bernanke warned in a speech that weakness in the housing market would likely drag on growth through early next year. Amongst all this, investors failed to find much encouragement with the companies reporting third-quarter earnings.
Shares of Bear Stearns Cos. Inc. closed up $2.36 or 1.96% to $123.05, after China's Citic Bank Corp. confirmed an interest in acquiring a stake in the Wall Street firm. China Citic Bank Corp., is a unit of a financial trust controlled by the Chinese cabinet.
Stock of Ericsson AB closed down $9.60 or 23.45% to $31.33, after warning that its third-quarter sales, operating income and cash flow all would be lower than expected.
Shares of Wells Fargo closed down $1.40 or 3.89% to $34.55, after reporting slightly higher earnings despite taking a write down totaling nearly $500 million over mortgages that had lost value. Net income rose to $2.28 billion, from $2.19 billion during the same quarter in 2006.
Stock of E.W. Scripps closed up $3.65 or 8.63% to $45.93, after the company said it would split into two companies. It plans to create a new company, to be called Scripps Networks Interactive, which will own Scripps' cable TV and Internet assets.
Oil prices closed up $1.48 to settle at $87.61 a barrel on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed lower ahead of key technology results as investors contended with warnings from financial institutions that the recent credit crunch would dent earnings in the fourth quarter. Soaring oil prices added to the mayhem as investors digested more troubling news from the already battered housing sector.
The Dow Jones industrial average closed down 71.86 or 0.51% to 13,912.94, the broader S&P 500 closed down 10.18 or 0.66% to 1,538.53, and the tech-fueled Nasdaq composite closed down 16.14 or 0.58% to 2,763.91.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers by more than 2 to 1 as 1.3 billion shares changed hands. On the Nasdaq, losers topped winners 9 to 5 on volume of 2.0 billion shares.
Oil getting close to $90 a barrel received a lot of attention from investors as well as portfolio managers. They opine that inflation could be a problem that could hurt the economy. The National Association of Home Builders reported that its monthly survey of builder confidence fell to its worst record during October, while the outlook for the future also remained at a record low.
Additionally, Federal Reserve Chairman Ben Bernanke warned in a speech that weakness in the housing market would likely drag on growth through early next year. Amongst all this, investors failed to find much encouragement with the companies reporting third-quarter earnings.
Shares of Bear Stearns Cos. Inc. closed up $2.36 or 1.96% to $123.05, after China's Citic Bank Corp. confirmed an interest in acquiring a stake in the Wall Street firm. China Citic Bank Corp., is a unit of a financial trust controlled by the Chinese cabinet.
Stock of Ericsson AB closed down $9.60 or 23.45% to $31.33, after warning that its third-quarter sales, operating income and cash flow all would be lower than expected.
Shares of Wells Fargo closed down $1.40 or 3.89% to $34.55, after reporting slightly higher earnings despite taking a write down totaling nearly $500 million over mortgages that had lost value. Net income rose to $2.28 billion, from $2.19 billion during the same quarter in 2006.
Stock of E.W. Scripps closed up $3.65 or 8.63% to $45.93, after the company said it would split into two companies. It plans to create a new company, to be called Scripps Networks Interactive, which will own Scripps' cable TV and Internet assets.
Oil prices closed up $1.48 to settle at $87.61 a barrel on the New York Mercantile Exchange.
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