The US stock markets continued its losing streak, and markets plunged to their lowest levels in nearly 12 years. The technology shares remained in pressure on fears about a turn down in business and consumer spending on technology. However the financial shares rallied, backed by news that government agencies pledged their support for a strong financial system. The government will provide temporary capital if it is unavailable from private sources. This led to the belief that government will provide capital to the banking system to survive, while also helping to keep credit flowing.
The investors reacted positively to word the government may convert its preferred Citigroup shares into common shares. This move by the government would bolster Citi''s tangible equity and improve the bank''s ability to absorb losses.
Moreover the automakers shares gained on reports that the government is lining up funds in case they are needed to finance bankruptcy at General Motors or Chrysler.
Among the corporate news front, there are reports that AIG is in discussions with the government about securing more funds to be able to continue operating after March 2. The insurer will report the largest loss in corporate history. Sources say the losses will be near, if not exceeding, $60 billion.
The automaker giant Ford has reached a tentative agreement with the UAW regarding funding for benefits. Ford is expected to be able to use a mix of cash and stock.
Tomorrow Fed Chairman Bernanke will provide his semiannual monetary policy report to the Senate Banking Committee.
The Dow Jones Industrial Average (DJIA) dropped by 250.89 points to close at 7,114.78. The NASDAQ Composite (RIXF) index decreased by 53.51 points to close at 1,387.72 and the S&P 500 (SPX) fell by 26.72 points to close at 743.33.
Among the Dow’s 30 components, 27 of its components ended in red mainly led by the stocks like Citigroup, Alcoa, Du Pont and American Express down by 9.74%, 7.63%, 7.21% and 6.32% respectively.
US light crude oil for April delivery fell by 4.6% to settle at $38.20 a barrel on the New York Mercantile Exchange. The April contract hit a high of $41.49 per barrel early in the early trade.
COMEX gold for April delivery rose 0.7% to settle at USD995.50 an ounce, trading as low as USD976.20 per ounce on the session.
The investors reacted positively to word the government may convert its preferred Citigroup shares into common shares. This move by the government would bolster Citi''s tangible equity and improve the bank''s ability to absorb losses.
Moreover the automakers shares gained on reports that the government is lining up funds in case they are needed to finance bankruptcy at General Motors or Chrysler.
Among the corporate news front, there are reports that AIG is in discussions with the government about securing more funds to be able to continue operating after March 2. The insurer will report the largest loss in corporate history. Sources say the losses will be near, if not exceeding, $60 billion.
The automaker giant Ford has reached a tentative agreement with the UAW regarding funding for benefits. Ford is expected to be able to use a mix of cash and stock.
Tomorrow Fed Chairman Bernanke will provide his semiannual monetary policy report to the Senate Banking Committee.
The Dow Jones Industrial Average (DJIA) dropped by 250.89 points to close at 7,114.78. The NASDAQ Composite (RIXF) index decreased by 53.51 points to close at 1,387.72 and the S&P 500 (SPX) fell by 26.72 points to close at 743.33.
Among the Dow’s 30 components, 27 of its components ended in red mainly led by the stocks like Citigroup, Alcoa, Du Pont and American Express down by 9.74%, 7.63%, 7.21% and 6.32% respectively.
US light crude oil for April delivery fell by 4.6% to settle at $38.20 a barrel on the New York Mercantile Exchange. The April contract hit a high of $41.49 per barrel early in the early trade.
COMEX gold for April delivery rose 0.7% to settle at USD995.50 an ounce, trading as low as USD976.20 per ounce on the session.
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