Stocks in Australia gained 1.4% but fell more than 7% in the week. Australian dollar gained but remained vulnerable to global economic slowdown. Commodities and energy stocks rallied on higher oil prices. Australia bought A$500 million of mortgage backed securities.
Macys, the department retail stores operator reported third quarter revenues fell 7% to $5.493 billion from $5.906 billion a year ago. Net loss in the quarter was $44 million or 10 cents per diluted share compared to net income of $33 million or 8 cents per share, a year ago.
U.S. stocks staged a sharp reversal after dropping nearly 2.5% in the morning trading and surged to close up 7%. The near 10% reversal in the market indexes occurred after crude oil prices rose and energy related stocks led the gainers. Asian markets closed down 5%. European markets edged up.
General Electric fell sharply on the worries that its financial service unit may need more capital and the company may need to trim dividend, which the company denied. GE dropped to 12-year low. Retailers and financials fell sharply as Treasury Secretary Paulson keeps changing his focus.
Asian stocks fell sharply as the U.S. politicians added more uncertainties to the markets. Lawmakers in the U.S. send conflicting signs regarding General Motors bailout and U.S. Treasury Secretary keeps changing his focus. Asian markets fell more than 5% and currencies declined 2% or more.
Stocks in Japan and in Asia fell more than 5% as the U.S. lawmakers struggle to decide the fate of General Motors. The largest U.S. electronics retailer Best Buy issued grim holiday sales outlook. Exporters in Japan fell. Currencies in the region declined more than 2%.
Industrial production in China rose at a slower pace of 8.2% in October and retail sales surged 22% in the month. Electricity output fell 4% and passenger cars production declined 6.2% in the month. Hong Kong Exchange quarterly net declined 43%.
Fluor Corporation third quarter revenue rose to $5.7 billion from $4.1 billion on growth in the oil and gas and power segments. Net earnings surged 95% to $183 million and earnings per share doubled to $1.01 per diluted share compared to $0.51 a share.
Australian stocks plummeted 5.9% as commodity stocks retreated on falling metal prices and 5% decline in crude oil prices. Copper and aluminum prices dropped to three-year lows as stockpiles increased on falling global demand for raw materials. Commonwealth Bank estimated higher loan losses.
U.S. stocks dropped more than 5% after the U.S. Treasury Secretary switched his bailout plan focus one more time. The frequent changes in emphasis left the market confused and raises doubts that the Bush administration is out of touch. Of the S&P 500 index stocks, 71 fell more than 10%.
