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Market Update : 
Nervous Investors, Ambac Downgrade
Author: 123jump.com Staff
123jump.com
Last Update: 5:43 PM EST January 18 2008


U.S. stocks fell at close after volatile session. Worries related to bond insurers were added to credit market jitters, housing market worries, and declining consumer spending. Three popular averages fell. The President Bush plan to stimulate economy with $150 billion of fiscal measures did not impress investors. General Electric and IBM rose after reporting higher earnings largely on the strength in international markets. Ambac, bond insurer, dropped after Fitch lowered its rating to AA.

 
11:00PM Frankfurt, 5:00PM New York, 9:00AM next day Sydney

North American Markets indexes

Dow Jones Industrial Average lost 59.91 or 0.49% to a close of 12,099.30, S&P 500 closed down 8.06 or 0.60% to 1,325.19, and Nasdaq Composite Index traded down 6.88 or 0.29% to a close of 2,340.02.

In Toronto TSX Composite closed down 58.51 or 0.46% to close at 12,737.12.

Of the 30 stocks in Dow Jones Industrial Average, 11 closed higher, 19 closed lower, and none was unchanged.

Verizon led the decliners in the index with a fall of 4.5% followed by losses in AIG of 4%, in AT&T of 3.2%, in Merck of 2.8%, and in Johnson & Johnson of 2.3%. General Electric led the gainers in the index with a rise of 3.3% followed by increases in General Motors of 3%, in IBM of 2.3%, and in American Express of 2.2%.


Of the stocks in S&P 500, 207 closed higher, 289 fell, and 4 were unchanged.

Forty Eight stocks fell more than 3% and thirty five stocks rose more than 3%.

Sprint Nextel led the decliners in the index with a fall of 24.9% followed by losses in XL Capital of 11%, in Countywide of 4.96%, in Fannie Mae of 8.2%, and in MBIA of 7.2%. Xilinx led the gainers in the index with a rise of 12.5% followed by increases in Advanced Micro Devices of 11.51%, in Washington Mutual of 8.8%, in Tesoro 8.5%.


South American Markets Indexes

In Latin Markets Colombia led the decliners in the region with a loss of 3.17% followed by decreases in Venezuela of 1.79%, in Chile of 1.23%, and in Argentina of 0.44%. Brazil gained 0.82% and Mexico added 0.06%.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 77.84 or 0.56% to 13,861.29, in Hong Kong Hang Seng index increased 86.89 or 0.35% closed to 25,201.87, in Australia ASX 200 index lower 48.80 or 0.84% to close 5,747.30.

In South Korea Kospi Index increased 11.17 or 0.65% to close at 1,734.72, in Thailand SET index closed lower 1.58 or 0.20% to 789.67, and Indonesia JSE Index edged decreased 38.15 or 1.44% to 2,611.13. Sensex index in India decreased 687.12 or 3.49% to 19,013.70.

European Markets

In London FTSE 100 Index closed lower 0.70 or 0.01% to 5,901.70, in Paris CAC 40 Index decreased 64.69 or 1.25% to close at 5,092.40 and in Frankfurt DAX index lower 99.36 or 1.34% to close at 7,314.17. In Zurich trading SMI declined 96.08 or 1.23% to close at 7,691.98.


Bond Yields decreased on 10-year U.S. bonds to 3.63% and 30-year bonds were unchanged at 4.28%.

 


 

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