5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – U.S. stocks dropped as investors increasingly come up empty with details of economic stimulus and bank bail out plan. General Motors and Chrysler seek additional $22 billion and plans to eliminate 50,000 jobs this year.

U.S. stocks dropped sharply on the back of weak global markets. Banks and financial stocks led the decliners as investors looked for details of bank bail out plan and economic stimulus plan. President Obama signed the stimulus package that is expected provide relief to foreclosed homes and individuals with tax relief for home purchase.

Automakers General Motors asked for nearly $16.6 billion in additional loans and Chrysler of $5 billion. The two automakers are increasingly likely to not return the funds if they return to profitability by the end of this March. However, investors are worried that these funds may never be returned.

General Motors announced a plan to eliminate 47,000 jobs worldwide and Chrysler plans to cut 3,000 jobs.

Wal-Mart fourth quarter earnings dropped 7.4% to $3.79 billion or 96 cents a share compared to $4.01 billion or $1.02 a share. The company increasingly reliant on international sales and sale of groceries at domestic locations in the U.S. had anemic sales growth.

Arbitron Inc fourth quarter profit slips. Medtronic, Inc third quarter profit rises. Wal-Mart Stores, Inc fourth quarter profit declined 7% on weak sales rise at domestic locations. Hartford Financial, SunTrust Banks and Fifth Third Bank declined.

European indexes fall between 2% and 3% at close on the worries that banks in Eastern European countries are weaker than earlier estimated. The banks in Western Europe may suffer as many banks have significant operations in the region.

Raiffeisen International, Swedbank AB, UniCredit SpA and Daimler AG declined in the regional trading. Eastern European economies are expected shrink at a faster pace than the Western Europe as the region relied on debt.

U.K. stocks plunged on weak financial and commodity stocks as global economic recession appear to widen and may take longer and cost more than earlier anticipated. Banks fell on the worries that those with exposure to Eastern European region may suffer more losses.

Japan stock indexes declined after index for demand for services dropped in December. Passenger car sales from the eight biggest car makers will drop in the current fiscal year. Finance Minister Nakagawa resigned after he appeared intoxicated at a press conference after G-7 meeting.

The benchmark indexes in Hong Kong dropped 3.8% and in Shanghai declined 3.1% after foreign investors withdrew HK$500 million in January. Separately, China reported fiscal revenues in January declined 17.1% on similar decline in tax revenues. Hong Kong exports in December declined 13%.

Stocks in India dropped for the second day in a row after interim budget did not provide any corporate tax relief. The volatile foreign investors are likely to withdraw funds from the company as global economic recession widens. India is likely to miss its export target in the current fiscal year.

Stocks in Australia fell on the worries that the global recession is likely to deepen after G-7 meeting of ministers failed to offer clear path to recovery. China based Minmetals offered $2.6 billion bid for OZ Minerals. BG Group raises takeover offer for Pure Energy to A$995 million.

American Markets Reviews

Dow Jones Industrial Average decreased 297.81 or 0.6% to a close of 7,442.60, S&P 500 dropped 37.67 or 4.6% to 789.17, and Nasdaq Composite Index edged down 63.70 or 4.15% to a close of 1,470.66. In Toronto TSX Composite lost 299.40 or 3.45% to close at 8,378.70.

In Latin American trading Brazil Bovespa Index decreased 4.8% or 1,994.35 to 39,846.97 and Mexico Bolsa Index dropped 3.4% or 666.94 to 18,853.93.

Argentina rose 4.5%, Chile declined 1.5%, Peru decreased 1.8% and Colombia edged lower 2.1%. Venezuela gained 0.7%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 9 increased, 490 declined and 1 was unchanged.

Huntington Bancorp led the decliners in the S&P 500 index with a loss of 22.5% followed by losses in Hartford Financial Services with a loss of 19.9%, in XL Capital of 18.6%, in Sun Trust Banks of 18.4%, in Prologis of 17.4%.

GM	$33.23	-0.51%
WMT	$77.03	-0.47%
STI	$31.88	-0.84%
HBAN	$7.56	-1.69%
MDT	$51.53	-1.57%

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