Wall Street falls after GDP American and Bernanke
NEW YORK (AP) - Wall Street finished significant decline Thursday after the confirmation of a slowdown sec of American growth in the fourth quarter, which was added a warning from Fed chairman on the health of banks.
The Dow Jones core values of the thirty closed down by 0.88%, or 112.10 points, to 12.582,18, the index expanded Standard & Poor's 500 lost 0.89% (12.34 points) to 1.367,68 and the Nasdaq composite market, with a high technology, dropped 0.94% (22.21 points) to 2.331,57.
The American equity markets had already opened on a negative note, the latest figures of the gross domestic product (GDP) in the fourth quarter of American came confirm the thesis of a sharp slowdown, with growth of just 0.6% annual rate, lower than the government's earlier estimate and the consensus of economists that gave +0.7%.
The deceleration is very clear from the third quarter, when growth was 4.9%.
The fears of investors have also been fuelled by the announcement of a sharp rise in weekly unemployment registrations, and by the firmness of oil prices that worried about the purchasing power of consumers: Brent crossed in turn bar 101 dollars a barrel and US light crude rose above its previous record highs, even adjusted for inflation, which dated back to 1980, moving closer to the $ 103.
BERNANKE BREATH ON BRAISES
The nervousness of investors has increased further when the chairman of the Federal Reserve warned that the weakness of the real estate market would likely bankruptcy of certain banks.
If the boss of the Fed hinted Wednesday before the House of Representatives that he would not hesitate to further reduce interest rates to avoid a deterioration of the economic situation, and if repeated Thursday before the Senate not expect stagflation in the United States as in the 1970's, the market has chosen his words especially on small banks threatened with extinction because of the crisis, although the system as a whole seemed to be solid.
"The speakers hoped Bernanke more than what they had," explains John O'Brien MKM Partners LLC.
Main victim of the day, the banking sector lost 3.46%, as shown in the sub-index KBW, felt weak throughout the entire compartment as the financial subindex Standard & Poor's has financial values dropped 3.04%.
As for the individual values, the bank JPMorgan Chase has downgraded from 4.44% to 42.44 dollars, signing one of the highest declines in both the Dow and S & P-500.
The economic statistics of the day, reflecting a contagion of the crisis of the real estate to other segments of the economy, have also weighed on the subcontinent Dow Jones index of construction, which fell by 6.7%. The first American builder of houses DR Horton has plummeted from 9.24% to 15.52 dollars.
Conversely, the strength of crude has supported some oil companies, like Chevron who fired succeed at the game with a gain of 3.72% to 27.90.
The Dow Jones core values of the thirty closed down by 0.88%, or 112.10 points, to 12.582,18, the index expanded Standard & Poor's 500 lost 0.89% (12.34 points) to 1.367,68 and the Nasdaq composite market, with a high technology, dropped 0.94% (22.21 points) to 2.331,57.
The American equity markets had already opened on a negative note, the latest figures of the gross domestic product (GDP) in the fourth quarter of American came confirm the thesis of a sharp slowdown, with growth of just 0.6% annual rate, lower than the government's earlier estimate and the consensus of economists that gave +0.7%.
The deceleration is very clear from the third quarter, when growth was 4.9%.
The fears of investors have also been fuelled by the announcement of a sharp rise in weekly unemployment registrations, and by the firmness of oil prices that worried about the purchasing power of consumers: Brent crossed in turn bar 101 dollars a barrel and US light crude rose above its previous record highs, even adjusted for inflation, which dated back to 1980, moving closer to the $ 103.
BERNANKE BREATH ON BRAISES
The nervousness of investors has increased further when the chairman of the Federal Reserve warned that the weakness of the real estate market would likely bankruptcy of certain banks.
If the boss of the Fed hinted Wednesday before the House of Representatives that he would not hesitate to further reduce interest rates to avoid a deterioration of the economic situation, and if repeated Thursday before the Senate not expect stagflation in the United States as in the 1970's, the market has chosen his words especially on small banks threatened with extinction because of the crisis, although the system as a whole seemed to be solid.
"The speakers hoped Bernanke more than what they had," explains John O'Brien MKM Partners LLC.
Main victim of the day, the banking sector lost 3.46%, as shown in the sub-index KBW, felt weak throughout the entire compartment as the financial subindex Standard & Poor's has financial values dropped 3.04%.
As for the individual values, the bank JPMorgan Chase has downgraded from 4.44% to 42.44 dollars, signing one of the highest declines in both the Dow and S & P-500.
The economic statistics of the day, reflecting a contagion of the crisis of the real estate to other segments of the economy, have also weighed on the subcontinent Dow Jones index of construction, which fell by 6.7%. The first American builder of houses DR Horton has plummeted from 9.24% to 15.52 dollars.
Conversely, the strength of crude has supported some oil companies, like Chevron who fired succeed at the game with a gain of 3.72% to 27.90.
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