Today has been another crazy day on the markets. On Wall Street the Dow Jones closed 363.35 points or 3.5% at 9,962. Although a massive shock, that was a remarkable recovery having seen the index be on target for a jaw-dropping record of 800 points, beating last weeks 777 point drop.
The broader S&P 500 also fell by 3.8%.
Gloom shifted from American banks to Europe with the disjointed and messy response from the continent's governments. The U.S. Government in the shape of the Federal Reserve. would significantly expand the amount of money it made available to major banks. The Fed will now lend up to $900 billion in credit. The sheer size of the new figure, they hope will reassure the markets.
London, did not recover from its own massive fall off a cliff. The Flagship FTSE 100 fell by 391 points or 7.85%. This represents the largest ever points drop and the third largest in percentage terms since its launch in 1987.
Showing posts with label S and P 500. Show all posts
Showing posts with label S and P 500. Show all posts
Monday, 6 October 2008
Thursday, 2 October 2008
Wall Street Stil Not Sold on Bailout
Wall Street appears not to believe the $700bn rescue package is going to save the U.S. from recession, even if it does alleviate the credit crunch if the House of Representatives vote for it. The Senate passed it yesterday.
The Dow Jones Industrial Index closed 3.2% or 348 points to close at 10,482. The broader S&P 500 dropped even more with a 46.78 drop or 4% to 1,114. Traditional cyclical sectors, manufacturing, chemical production and mining industries fared worst. These typically are hit hardest by recessions.
The FTSE 100 fell 1.8%
In other news, the European Central Bank left interest rates at 4.25%.
The Dow Jones Industrial Index closed 3.2% or 348 points to close at 10,482. The broader S&P 500 dropped even more with a 46.78 drop or 4% to 1,114. Traditional cyclical sectors, manufacturing, chemical production and mining industries fared worst. These typically are hit hardest by recessions.
The FTSE 100 fell 1.8%
In other news, the European Central Bank left interest rates at 4.25%.
Monday, 29 September 2008
Shock Defeat for Bailout In House of Representatives
House Votes Down $700bn Bailout
The US House of Representatives has voted by 228 to 205 down the $700bn bailout agreed over the weekend. Two-thirds of Republicans and 95 Democrats rejected the deal.
A massive drop in the Dow Jones ensued with a 778 point decline. After the close the percentage was 7.7%. The S&P 500 suffered its biggest percentage drop since Black Monday in 1987.
The FTSE dropped 270 points or 5.3%.
Other Market Moves
Three governments, the Dutch, Belgian and Luxembourg pumped €11bn into Fortis bank. Fortis for its part will have to sell its stake in the ABN Ambro bank.
French bank Dexis has become the latest target of speculators. Dexia handles a lot of the finance for local government. The French government made the now obligatory statement tha the bank would not be allowed to fail.
Wachovia, another bank under attack has been swallowed by Citigroup in a government backed deal..
The UK government is nationalising the Bradford and Bingley bank. Spanish banking giant Santander is to take the savings business and branch network.
The US House of Representatives has voted by 228 to 205 down the $700bn bailout agreed over the weekend. Two-thirds of Republicans and 95 Democrats rejected the deal.
A massive drop in the Dow Jones ensued with a 778 point decline. After the close the percentage was 7.7%. The S&P 500 suffered its biggest percentage drop since Black Monday in 1987.
The FTSE dropped 270 points or 5.3%.
Other Market Moves
Three governments, the Dutch, Belgian and Luxembourg pumped €11bn into Fortis bank. Fortis for its part will have to sell its stake in the ABN Ambro bank.
French bank Dexis has become the latest target of speculators. Dexia handles a lot of the finance for local government. The French government made the now obligatory statement tha the bank would not be allowed to fail.
Wachovia, another bank under attack has been swallowed by Citigroup in a government backed deal..
The UK government is nationalising the Bradford and Bingley bank. Spanish banking giant Santander is to take the savings business and branch network.
Sunday, 28 September 2008
Washington Mutual Disappears from S P 500
Standard & Poor's will make the following changes to the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices:
-- Washington Mutual Inc. (NYSE:WM) will be removed from the S&P 500 index after the close of trading on Monday, September 29. Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named receiver. S&P 100 and 500 constituent JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the FDIC.
Washington Mutual's place in the S&P 500 will be taken by S&P MidCap 400 constituent Flowserve Corp. (NYSE:FLS) , Flowserve will be replaced by S&P SmallCap 600 constituent UGI Corp. (NYSE:UGI) , and UGI Corp. will be replaced by Taleo Corp. (NASDAQ:TLEO) , all after the close of trading on Wednesday, October 1.
Standard & Poor's will monitor these transactions, and post any relevant updates on its website: www.standardandpoors.com.
Flowserve is a manufacturer and aftermarket service provider of flow control systems. Headquartered in Irving, TX, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Industrial Machinery Sub-Industry index.
-- Washington Mutual Inc. (NYSE:WM) will be removed from the S&P 500 index after the close of trading on Monday, September 29. Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named receiver. S&P 100 and 500 constituent JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the FDIC.
Washington Mutual's place in the S&P 500 will be taken by S&P MidCap 400 constituent Flowserve Corp. (NYSE:FLS) , Flowserve will be replaced by S&P SmallCap 600 constituent UGI Corp. (NYSE:UGI) , and UGI Corp. will be replaced by Taleo Corp. (NASDAQ:TLEO) , all after the close of trading on Wednesday, October 1.
Standard & Poor's will monitor these transactions, and post any relevant updates on its website: www.standardandpoors.com.
Flowserve is a manufacturer and aftermarket service provider of flow control systems. Headquartered in Irving, TX, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Industrial Machinery Sub-Industry index.
Monday, 22 September 2008
Harris Added to S and P 500
Harris Corporation (NYSE:HRS) , an international communications and information technology company, has been added to the S&P 500 Index effective at the close of trading September 19, 2008.
"We are pleased to be added to the S&P 500 and the increased recognition and stature that it provides for our company among all of our stakeholders," said Howard L. Lance, chairman, president and CEO. "Being added to the index acknowledges the company's track record of sustained growth during the past five years, the strategies that helped create these positive results, and the dedication of the more than 16,500 Harris employees who helped make it happen."
"We are pleased to be added to the S&P 500 and the increased recognition and stature that it provides for our company among all of our stakeholders," said Howard L. Lance, chairman, president and CEO. "Being added to the index acknowledges the company's track record of sustained growth during the past five years, the strategies that helped create these positive results, and the dedication of the more than 16,500 Harris employees who helped make it happen."
Thursday, 18 September 2008
Trading Today
The Dow Jones had a respite, closing 410 points or 3.86% on todays session. Standard & Poors 500 was up 4.1% as well. The good news did not extend to the FTSE 100 which saw a 0.7% drop.
There was no let up for the credit markets with a massive flow to Treasury bills, freezing the market for capital.
$180bn of loans from the Federal Reserve to other world central banks to improve money markets liquidity.
LIBOR, the rate at which banks loan money to each other is still very high.
UK banks were again in the spotlight. Now HBOS has been rescued, the wave of pessimism started on Bradford & Bingley. In the US Morgan Stanley was under the Microscope for its possible tie-up with Wachovia.
The FSA implemented its restrictions on short-selling of financial firms.
There was no let up for the credit markets with a massive flow to Treasury bills, freezing the market for capital.
$180bn of loans from the Federal Reserve to other world central banks to improve money markets liquidity.
LIBOR, the rate at which banks loan money to each other is still very high.
UK banks were again in the spotlight. Now HBOS has been rescued, the wave of pessimism started on Bradford & Bingley. In the US Morgan Stanley was under the Microscope for its possible tie-up with Wachovia.
The FSA implemented its restrictions on short-selling of financial firms.
Monday, 15 September 2008
New York Plunge Worst Since September 11 Attacks
The continuing turmoil in the financial markets has caused the New York to have its worst day since the 2001 terrorist attacks. The Dow Jones Industrial average dropped 504.48 points during the day. The S&P 500 index lost 4.7%. The biggest losers on the were banks and other financial institutions.
Europe, fared similarly with the Flagship FTSE off nearly 4%.
Treasury secretary, Henry M. Paulson Jr., commented “as we work off some of the past excesses,” but that Americans could “remain confident in the soundness and the resilience of our financial system.”
“Let me step back a bit and provide a little perspective,” Mr. Paulson said. “As I’ve long said, the housing correction is at the root of the challenges facing our markets and our financial institutions. I believe that we’ve taken very important steps with respect to Fannie Mae and Freddie Mac, and they’re amongst the most important actions we can take to work through this turmoil.”
Lehman Brothers, led the way seeing their shares drop 95% to 21 cents, on the way to declaring bankruptcy. AIG dropped to $4.76 or 65%. A promise of help from the Federal Reserve helped matters.
Europe, fared similarly with the Flagship FTSE off nearly 4%.
Treasury secretary, Henry M. Paulson Jr., commented “as we work off some of the past excesses,” but that Americans could “remain confident in the soundness and the resilience of our financial system.”
“Let me step back a bit and provide a little perspective,” Mr. Paulson said. “As I’ve long said, the housing correction is at the root of the challenges facing our markets and our financial institutions. I believe that we’ve taken very important steps with respect to Fannie Mae and Freddie Mac, and they’re amongst the most important actions we can take to work through this turmoil.”
Lehman Brothers, led the way seeing their shares drop 95% to 21 cents, on the way to declaring bankruptcy. AIG dropped to $4.76 or 65%. A promise of help from the Federal Reserve helped matters.
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