Portfolio Crafter
11-08-2007, 11:15 PM
End of Day Market Summary - Thursday, November 8, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks extended losses after Federal Reserve Chairman Ben Bernanke painted a perilous economic outlook, and worries about Cisco Systems Inc.'s quarter helped fuel a sell-off in the technology sector. However, strength in the financial and transport sectors helped the Dow to recover some, while the Nasdaq ended sharply lower.
The Dow Jones industrial average closed down 33.73 or 0.25% to 13,266.29, the broader S&P 500 closed down 0.85 or 0.06% to 1,474.77, and the tech-fueled Nasdaq composite closed down 52.76 or 1.92% to 2,696.00.
Market breadth was negative. Decliners edged out advancers 17 to 15 on the New York Stock Exchange as 2.18 billion shares changed hands. Losers topped winners on the Nasdaq on volume of 3.49 billion shares.
Much of the markets' attention was focused on Bernanke's testimony before Congress' joint economic committee. He downplayed recession fears, telling lawmakers that the economy should continue to grow in 2008, but at a much slower pace than in recent quarters. He also warned that the Fed remained concerned about the sub-prime mortgage crisis and sky-high oil prices, which pose a risk of higher inflation.
Shares of Morgan Stanley closed up $2.49 or 4.86% to $53.68, after the company said it would take a $3.7 billion write-down because of bad bets on sub-prime mortgages. Its fourth-quarter profit will be reduced by $2.5 billion in write-downs.
Stock of Cisco Systems closed down $3.12 or 9.53% to $29.63, following analysts' predictions that corporations will scale back on technology spending in the months ahead. The network-equipment maker reported improved earnings, but the results were not as strong as Wall Street had hoped and the CEO expressed worries about future growth.
Shares of Ford closed up $0.24 or 2.91% to $8.48, after reporting narrower losses than expected. It lost only 24 million, on continuing operations excluding special items. That is much better than the forecast of $850 million, on that basis a year earlier.
Stock of American International Group closed down $1.90 or 3.28% to $56.0, after reporting disappointing results and blaming the battered housing market and tighter credit conditions. Its $872.3 billion-investment portfolio lost $864 million, its credit-swap portfolio lost $352 million and its mortgage-insurance business lost $215 million.
Oil prices retreated but continued to remain near record level as light, sweet crude for December fell 91 cents to settle at $95.46 a barrel on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks extended losses after Federal Reserve Chairman Ben Bernanke painted a perilous economic outlook, and worries about Cisco Systems Inc.'s quarter helped fuel a sell-off in the technology sector. However, strength in the financial and transport sectors helped the Dow to recover some, while the Nasdaq ended sharply lower.
The Dow Jones industrial average closed down 33.73 or 0.25% to 13,266.29, the broader S&P 500 closed down 0.85 or 0.06% to 1,474.77, and the tech-fueled Nasdaq composite closed down 52.76 or 1.92% to 2,696.00.
Market breadth was negative. Decliners edged out advancers 17 to 15 on the New York Stock Exchange as 2.18 billion shares changed hands. Losers topped winners on the Nasdaq on volume of 3.49 billion shares.
Much of the markets' attention was focused on Bernanke's testimony before Congress' joint economic committee. He downplayed recession fears, telling lawmakers that the economy should continue to grow in 2008, but at a much slower pace than in recent quarters. He also warned that the Fed remained concerned about the sub-prime mortgage crisis and sky-high oil prices, which pose a risk of higher inflation.
Shares of Morgan Stanley closed up $2.49 or 4.86% to $53.68, after the company said it would take a $3.7 billion write-down because of bad bets on sub-prime mortgages. Its fourth-quarter profit will be reduced by $2.5 billion in write-downs.
Stock of Cisco Systems closed down $3.12 or 9.53% to $29.63, following analysts' predictions that corporations will scale back on technology spending in the months ahead. The network-equipment maker reported improved earnings, but the results were not as strong as Wall Street had hoped and the CEO expressed worries about future growth.
Shares of Ford closed up $0.24 or 2.91% to $8.48, after reporting narrower losses than expected. It lost only 24 million, on continuing operations excluding special items. That is much better than the forecast of $850 million, on that basis a year earlier.
Stock of American International Group closed down $1.90 or 3.28% to $56.0, after reporting disappointing results and blaming the battered housing market and tighter credit conditions. Its $872.3 billion-investment portfolio lost $864 million, its credit-swap portfolio lost $352 million and its mortgage-insurance business lost $215 million.
Oil prices retreated but continued to remain near record level as light, sweet crude for December fell 91 cents to settle at $95.46 a barrel on the New York Mercantile Exchange.
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