Credit Worries Resurface in U.S., Coal Rises

Market Update Analysis:

Author: 123jump.com Staff
123jump.com
Last Update: 5:00 PM EST January 25 2008

U.S.stocks lost the early gains as investors faced the fallout of the drop in bond insunrace ratings. The decline in ratings could cause banks to lose nearly $150 billion in bond portfolio and may force them to seek new capital. Market worried that the current sub-prime crisis is far from over. In the morning stocks gained after Microsoft reported 80% rise in earnings. Honeywell reported 18% increase in earnings, Caterpillar and Lockheed earnings rose 11% and 10% respectively.

4:00PM New York, 10:00PM Frankfurt, 8:00AM Sydney – U.S. stocks fell as investors face the potential fallout from the declining credit of bond insurers.

North American Markets indexes

Dow Jones Industrial Average fell 171.44 or 1.38% to a close of 12,207.17, S&P 500 closed down 21.46 or 1.59% to 1,330.61, and Nasdaq Composite Index traded down 34.72 or 1.47% to a close of 2,326.20.

In Toronto TSX Composite closed down 7.01 or 0.05% to close at 12,900.26.

Of the 30 stocks in Dow Jones Industrial Average, 5 closed higher, 25 closed lower, and none was unchanged.

AT&T led the decliners in the index with a fall of 4.2% followed by losses in Home Depot o 3.9%, in AIG of 3.6%, in American Express of 3.3%, and in Intel of 3.1%.

Honeywell led the gainers in the index with a rise of 3% followed by increases in General Motors of 0.8% and in McDonalds of 0.7%.

Of the stocks in S&P 500, 103 closed higher, 395 fell, and 2 were unchanged.

Twenty one stocks rose more than 3% and one hundred stocks fell more than 3%.

Freddie Mac led the decliners in the index with a fall of 7.5% followed by losses in Micron Technology of 7.5%, in Fannie Mae of 7.11%, in AMD of 6.3%, and in Schering Plough of 6.1%.

Perkin Elmer led the gainers in the index with a rise of 18% followed by increases in Compuware of 14%, in E*Trade of 8.4%, in Eastman Chemical of 7.5%, and in Consol Energy of 7.1%.

South American Markets Indexes

In Latin Markets Peru led the advancers in the region with a gain of 1.97% followed by increases in Colombia of 1.06%, and in Argentina of 0.83%.

Mexico led the decliners with a fall of 1.7% followed by a loss of0.9% in Chile and 0.8% in Venezuela.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 536.38 or 4.10% to 13,629.16, in Hong Kong Hang Seng index increased 1583.10 or 6.73% closed to 25,122.37, in Australia ASX 200 index higher 279.90 or 5.02% to close 5,860.30.

In South Korea Kospi Index increased 29.41 or 1.77% to close at 1,692.41, in Thailand SET index closed higher 31.14 or 4.27% to 759.72, and Indonesia JSE Index edged increased 103.79 or 4.12% to 2,620.49. Sensex index in India increased 1139.90 or 6.62% to 18,361.66.

European Markets

In London FTSE 100 Index closed lower 6.80 or 0.12% to 5,869.00, in Paris CAC 40 Index decreased 37.17 or 0.76% to close at 4,878.12 and in Frankfurt DAX index lower 4.33 or 0.06% to close at 6,816.74. In Zurich trading SMI decreased 4.09 or 0.05% to close at 7,686.88.

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