Portfolio Crafter
11-02-2007, 01:01 AM
End of Day Market Summary - Thursday, November 1, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks dropped with the Dow industrials sliding more than 360 points, as a downgrade of Citigroup Inc. revived concerns about woes in the financial sector, sobering up markets after the euphoria of the Federal Reserve's rate cut the previous day. The Dow industrials suffered one of its biggest declines of the year, serving a blunt reminder to Wall Street that the credit market crisis is not over.
The Dow Jones industrial average closed down 362.14 or 2.60% to 13,567.87, the broader S&P 500 closed down 40.94 or 2.64% to 1,508.44, and the tech-fueled Nasdaq composite closed down 64.29 or 2.25% to 2,794.83.
Market breadth was negative. Losers beat winners by nearly 7 to 1 on the New York Stock Exchange on volume of 1.7 billion shares. Decliners topped advancers by 24 to 5 on the Nasdaq as 2.5 billion shares traded hands.
Investors fear that major financial players were hit harder by this summer's sub-prime crisis than originally anticipated. Because the value of many of these mortgage backed securities has not been determined, many firms may have to take additional losses. The spark of the Fed decrease fizzled very rapidly as investors shifted their attention to a host of economic reports. The personal income and spending by individuals rose less than expected in September, while personal income rose in line with expectations. The core PCE deflator, which measures prices paid by consumers for items other than food and energy, showed a 1.8% increase, within the Fed's comfort level. Manufacturing grew less than expected during the month of October, suggesting that woes in the housing market could be spreading to the broader economy.
Shares of Citigroup closed down $2.85 or 6.89% to $38.51, after a CIBC World Markets analyst downgraded the company's stock and added that Citigroup may have to cut its dividend in order to raise $30 billion in capital.
Stock of Credit Suisse closed down $3,40 or 5.02% to $64.30, on reporting a 31% drop in profits Thursday - hurt by the U.S. housing market and weakened demand for buyout loans. It wiped off $1.9 billion off the value of its mortgage book and leveraged loan commitments. Its profit fell to 1.3 billion francs from 1.89 billion francs a year earlier.
Shares of Exxon Mobil closed down $3.49 or 3.79% to $88.50, after reporting a bigger than expected drop in quarterly earnings. Its earnings for the three months ended Sept. 30 dropped to $9.41 billion, from $10.49 billion in the year-ago.
Stock of Sprint Nextel closed down $0.52 or 3.04% to $16.58, after it reported a steep drop in profits, hurt by its wireless business.
Shares of footwear-maker Crocs closed down $27.01 or 36.13% to $47.74, after it forecast that its 2007 sales would miss Wall Street expectations.
Oil prices reached a new record of $96.24 a barrel in electronic trading. But light, sweet crude for December settled 42 cents lower to $93.07 a barrel in afternoon trade on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks dropped with the Dow industrials sliding more than 360 points, as a downgrade of Citigroup Inc. revived concerns about woes in the financial sector, sobering up markets after the euphoria of the Federal Reserve's rate cut the previous day. The Dow industrials suffered one of its biggest declines of the year, serving a blunt reminder to Wall Street that the credit market crisis is not over.
The Dow Jones industrial average closed down 362.14 or 2.60% to 13,567.87, the broader S&P 500 closed down 40.94 or 2.64% to 1,508.44, and the tech-fueled Nasdaq composite closed down 64.29 or 2.25% to 2,794.83.
Market breadth was negative. Losers beat winners by nearly 7 to 1 on the New York Stock Exchange on volume of 1.7 billion shares. Decliners topped advancers by 24 to 5 on the Nasdaq as 2.5 billion shares traded hands.
Investors fear that major financial players were hit harder by this summer's sub-prime crisis than originally anticipated. Because the value of many of these mortgage backed securities has not been determined, many firms may have to take additional losses. The spark of the Fed decrease fizzled very rapidly as investors shifted their attention to a host of economic reports. The personal income and spending by individuals rose less than expected in September, while personal income rose in line with expectations. The core PCE deflator, which measures prices paid by consumers for items other than food and energy, showed a 1.8% increase, within the Fed's comfort level. Manufacturing grew less than expected during the month of October, suggesting that woes in the housing market could be spreading to the broader economy.
Shares of Citigroup closed down $2.85 or 6.89% to $38.51, after a CIBC World Markets analyst downgraded the company's stock and added that Citigroup may have to cut its dividend in order to raise $30 billion in capital.
Stock of Credit Suisse closed down $3,40 or 5.02% to $64.30, on reporting a 31% drop in profits Thursday - hurt by the U.S. housing market and weakened demand for buyout loans. It wiped off $1.9 billion off the value of its mortgage book and leveraged loan commitments. Its profit fell to 1.3 billion francs from 1.89 billion francs a year earlier.
Shares of Exxon Mobil closed down $3.49 or 3.79% to $88.50, after reporting a bigger than expected drop in quarterly earnings. Its earnings for the three months ended Sept. 30 dropped to $9.41 billion, from $10.49 billion in the year-ago.
Stock of Sprint Nextel closed down $0.52 or 3.04% to $16.58, after it reported a steep drop in profits, hurt by its wireless business.
Shares of footwear-maker Crocs closed down $27.01 or 36.13% to $47.74, after it forecast that its 2007 sales would miss Wall Street expectations.
Oil prices reached a new record of $96.24 a barrel in electronic trading. But light, sweet crude for December settled 42 cents lower to $93.07 a barrel in afternoon trade on the New York Mercantile Exchange.
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