Wall St little changed as bank woes offset oil
|
|
|
By Walter BrandimarteNEW YORK (Reuters) - Stocks were little changed on Thursday as concerns about the health of the financial system left investors averse to risk, offsetting the positive impact of another drop in the price of oil.Shares of Lehman Brothers sank as much as 46 percent after the struggling investment bank failed to announce definitive deals to raise much-needed capital to cover losses from tanking real estate investments.However, hopes that authorities might work out a plan to stabilize Lehman later surfaced, helping the entire financial sector trim losses. The S&P financial sector index <.GSPF> was down 1.6 percent after slumping more than 4 percent earlier."There is speculation that maybe there's going to be some kind of resolution with Lehman, maybe the Treasury steps in and gets some people together as you head towards the weekend so that there's some resolution by Monday," said Bobby Harrington, head of block trading at UBS in Stamford, Connecticut, adding:"It's just speculation. We don't know that for sure."The Dow Jones industrial average <.DJI> was down 34.36 points, or 0.30 percent, at 11,234.56, while the Standard &Poor's 500 Index <.SPX> edged down 2.13 points, or 0.17 percent, at 1,229.91. But the Nasdaq Composite Index <.IXIC>was up 2.18 points, or 0.10 percent, at 2,230.88.Shares of Lehman Brothers still plunged 37.5 percent to $4.53 while Washington Mutual Inc sank 9 percent to $2.11 as investors worried about the companies' mortgage-related losses, capital needs and survival prospects.Earlier on Thursday the U.S. Treasury Department, asked about the steep fall in Lehman stock, said it was continuing to monitor markets and was keeping in touch with market participants.The U.S. Federal Reserve declined to comment on Lehman, a day after the No. 4 U.S. investment bank failed to announce definitive deals to raise desperately needed capital.Shares of American International Group Inc fell 13.3 percent to $15.16 as investors fear the world's largest insurer may post another loss in the third quarter.Despite the persistent financial concerns, other banks' stocks turned positive. JPMorgan Chase rose 0.7 percent to $39.60 while Wells Fargo gained 2 percent to $32.34, both giving a major boost to the S&P 500.A fall of about 50 cents per barrel in the price of U.S. crude oil also supported the market, improving the outlook for inflation and corporate earnings. So far this month, oil prices have slid more than $13 to $102.08 a barrel.Among the biggest gainers on the S&P were shares of Allergan Inc , which jumped 10.8 percent to $60.49 after the company said its popular Botox wrinkle smoother worked as a treatment for adults suffering from chronic migraines as well, according to clinical data.(Additional reporting by Ellis Mnyandu and Steven C. Johnson; Editing by James Dalgleish)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
US stocks gain on surprise home sales recovery
New York - US stocks surged Monday after the release of some surprisingly buoyant data on home sales. Existing home sales surged to 6.1 million units in October, the highest annualized rate since February 2007 and up 10.1 per cent from September, acc...
Report: Microsoft and News Corp in search pact talks
San Francisco - Microsoft and News Corp are in advanced negotiations that would see the media conglomerate's content removed from Google's search index and appear exclusively via Microsoft's Bing search engine, the Financial Times reported Monday. Ne...
US home sales surge to highest level since 2007
Washington - Existing home sales surged more than 10 per cent in the United States in October to their highest level since February 2007, according to figures released Monday. The monthly data by the National Association of Realtors (NAR) beat expect...
US economists: 'Jobless' recovery to reach bottom at start of 2010
Washington - The US economy will start adding jobs some time in the first quarter of 2010, ending a so-called jobless recovery that has plagued the world's largest economy since the summer months, according to a survey released Monday. But the Nati...
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
|
|
|
|
|
|
|
|
