MARKET SNAPSHOT: U.S. Stocks Finish At 2009 Lows Amid Earnings Jitters
January 12 2009 - 3:31PM
Dow Jones News
By Kate Gibson
U.S. stocks on Monday sank to their lowest levels so far this
year, with financials hammered the hardest. Investors appeared
leery of what is likely to be an especially grim earnings
season.
"When you get a lot of reduction in earnings estimates going to
the earnings season, it usually gives you at least a lower hurdle
to jump over. I would still be surprised if we could make it over
that hurdle," said Bill Stone, chief investment strategist at PNC
Wealth Management.
Stone predicts earnings-reporting season will fall in line with
expectations, except for one sector: "The financials will be worse
than people expect," he added. Listen to more.
Off for a fourth consecutive session, the Dow Jones Industrial
Average (DJI) fell 125.13 points, or 1.5%, to 8,474.05, with 25 of
its 30 components ending lower.
Weighing the most on the blue-chip index, Citigroup Inc. (C)
shares fell 17% with the banking powerhouse reportedly near a deal
to combine its brokerage business with Morgan Stanley. Shares of
Morgan Stanley (MS) shed 1.4%.
Another Dow laggard, Alcoa Inc. (AA) shares declined 6.9% after
its downgrade by Deutsche Bank to a sell from a hold in the wake of
last week's announced cuts in production and employees by the
aluminum giant.
Alcoa reports its earnings after the market closes, with
analysts expecting a loss of 10 cents a share. .
Intel Corp.(INTC) reports its results Thursday, with the chip
maker and Wal-Mart Stores Inc. (WMT) among the companies offering
bleak forecasts last week.
Shares of technology firm Palm Inc. (PALM) fell nearly 1% after
its upgrade to hold by Citibank. .
The S&P 500 Index (SPX) fell 20.09 points, or 2.3%, to
870.26, with financials fronting the losses that stretched to
include all 10 of the index's industry groups, as big declines in
real-estate investment trusts and life insurers socked the broader
sector. .
Energy and materials also weighed heavily.
The Nasdaq Composite Index (RIXF) declined 32.8 points, or 2.1%,
to 1,538.79. .
Volume on the New York Stock Exchange exceeded 1.3 billion, and
decliners outpaced advancers more than 3 to 1. On the Nasdaq, more
than 688 million shares traded and decliners routed advancers 4 to
1.
Crude moves
Oil futures tumbled for a fifth straight session below $38 a
barrel as the global economic downturn continued to fuel worries
about demand. Crude for February delivery ended down $3.24, or
7.9%, at $37.59 a barrel on the New York Mercantile Exchange. .
Gold futures fell to a one-month low, with gold for February
delivery down $34 to finish at $821 an ounce.
Overseas, stocks in Europe declined for a fourth straight
session, as worries over the global economy sent oil-sector
companies lower. .
Asian shares also fell amid weakness among steelmakers and
miners.
On Friday, stocks fell for a third consecutive day after the
government reported the nation's unemployment rate climbed to 7.2%
in December from 6.8% the prior month.
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