Portfolio Crafter
11-06-2007, 08:57 AM
End of Day Market Summary - Monday, November 5, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks scaled back losses as investors looked beyond Citigroup Inc.'s likely write off of $11 billion more in credit-related losses to focus on stocks outside the embattled financial sector.
The Dow Jones industrial average closed down 51.70 or 0.38% to 13,543.40, the broader S&P 500 closed down 7.48 or 0.50% to 1,502.17, and the tech-fueled Nasdaq composite closed down 15.20 or 0.54% to 2,795.18.
Market breadth was negative. Losers beat winners by 3 to 1 on the New York Stock Exchange on volume of 1.5 billion shares. Decliners beat advancers by 2 to 1 on the Nasdaq as 2.1 billion shares traded hands.
Investors fear that if financial institutions go through another period of stress, it could create another seize up in the credit markets. However, some worries eased as investors began to realize that problems would be concentrated mostly in the financial sector.
In economic news, the ISM index for measuring the health of non-manufacturing industries rose to 55.8, up from 54.8 in September. Markets may struggle again tomorrow since there are no major economic reports on tap to set the direction.
Shares of Citi closed down $1.83 or 4.85% to $35.90, after stating that it will write down an additional $8 to $11 billion due to a decline in the value of sub-prime related assets. The bank also announced that Charles Prince would step down as chairman and CEO.
Shares of IAC closed up $2.22 or 7.49% to $31.84, after it said it would split into five separately traded public companies. The company that will retain the IAC name will own Internet advertising and media-related businesses such as search engine Ask.com - which trails Google (GOOG), Yahoo (YHOO) and Microsoft (MSFT) in the U.S. search race - local guide Citysearch, Evite and Zwinky.
Shares of Time Warner closed down $0.07 or 0.39% to $17.81, after Dick Parsons said he will resign as CEO as of Jan. 1, 2008. He will be replaced by Jeffrey Bewkes, currently the president and chief operating officer of the media conglomerate.
Stock of Wellcare closed up $5.93 or 21.67% to $33.30, after the health insurance company said it expected to report a 67% jump in profit. Although the company said quarterly results would be delayed pending an investigation into a raid by state and federal authorities.
Shares of Ford Motor Co. closed down $0.28 or 3.13% to $8.67, after it reached a tentative agreement with the United Auto Workers, including a memorandum of understanding to set up an independent health-care trust for retired workers. The deal included a memorandum of understanding to set up an independent health-care trust for retired workers.
Oil prices fell. Light, sweet crude for December delivery lost $1.95 to settle at $93.98 a barrel on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks scaled back losses as investors looked beyond Citigroup Inc.'s likely write off of $11 billion more in credit-related losses to focus on stocks outside the embattled financial sector.
The Dow Jones industrial average closed down 51.70 or 0.38% to 13,543.40, the broader S&P 500 closed down 7.48 or 0.50% to 1,502.17, and the tech-fueled Nasdaq composite closed down 15.20 or 0.54% to 2,795.18.
Market breadth was negative. Losers beat winners by 3 to 1 on the New York Stock Exchange on volume of 1.5 billion shares. Decliners beat advancers by 2 to 1 on the Nasdaq as 2.1 billion shares traded hands.
Investors fear that if financial institutions go through another period of stress, it could create another seize up in the credit markets. However, some worries eased as investors began to realize that problems would be concentrated mostly in the financial sector.
In economic news, the ISM index for measuring the health of non-manufacturing industries rose to 55.8, up from 54.8 in September. Markets may struggle again tomorrow since there are no major economic reports on tap to set the direction.
Shares of Citi closed down $1.83 or 4.85% to $35.90, after stating that it will write down an additional $8 to $11 billion due to a decline in the value of sub-prime related assets. The bank also announced that Charles Prince would step down as chairman and CEO.
Shares of IAC closed up $2.22 or 7.49% to $31.84, after it said it would split into five separately traded public companies. The company that will retain the IAC name will own Internet advertising and media-related businesses such as search engine Ask.com - which trails Google (GOOG), Yahoo (YHOO) and Microsoft (MSFT) in the U.S. search race - local guide Citysearch, Evite and Zwinky.
Shares of Time Warner closed down $0.07 or 0.39% to $17.81, after Dick Parsons said he will resign as CEO as of Jan. 1, 2008. He will be replaced by Jeffrey Bewkes, currently the president and chief operating officer of the media conglomerate.
Stock of Wellcare closed up $5.93 or 21.67% to $33.30, after the health insurance company said it expected to report a 67% jump in profit. Although the company said quarterly results would be delayed pending an investigation into a raid by state and federal authorities.
Shares of Ford Motor Co. closed down $0.28 or 3.13% to $8.67, after it reached a tentative agreement with the United Auto Workers, including a memorandum of understanding to set up an independent health-care trust for retired workers. The deal included a memorandum of understanding to set up an independent health-care trust for retired workers.
Oil prices fell. Light, sweet crude for December delivery lost $1.95 to settle at $93.98 a barrel on the New York Mercantile Exchange.
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