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US close: Stocks fall in most volatile session ever

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Date: Friday 10 Oct 2008

LONDON (ShareCast) - Shares closed lower on Wall Street, but the fall was moderate compared to earlier losses on an extremely volatile day for the US market.

The Dow Jones Industrial index traded in a range of more than 1,000 points, its biggest swing ever.

It nose-dived below 8,000 points, but then jumped back, topping 8,900 at one stage, only to slip back into the red in the lead-up to the close.

The Dow Jones closed down 128 points at 8,451, the S&P 500 closed down 10 at 899, while the tech heavy NASDAQ finished four points higher at 1,649.

Morgan Stanley again came under selling pressure after credit rating agency Moody’s said it may downgrade the former investment bank’s debt rating. Goldman Sachs slumped in sympathy.

Energy stocks hit the skids after oil slipped below $78 a barrel on fears that a world-wide recession will hit demand. National Oilwell, Exxon Mobil and Southwestern Energy were among many oil related stocks suffering falls. Chesapeake Energy was hit by concerns it won’t be able to sufficiently hedge against sliding natural gas prices.

However, JP Morgan Chase and Bank of America led a resurgence in the banking sector.

Wachovia was a bright point, advancing by almost one-third after Citicorp said it was giving up the fight to gain control of the bank which will now be able to proceed with its agreed takeover by Wells Fargo. Other regional banks such as Keycorp and Sovereign Bancorp were also wanted.

General Electric said today that earnings dropped 10% while revenue increased 11% in the third quarter, in line with expectations.

General Motors improved after it dismissed speculation that it is considering bankruptcy. The car maker, along with peers Ford and Chrysler may face bankruptcy according to ratings agency Standard and Poors.

Deckers Outdoor Corp, the footwear specialist behind Ugg boots, advanced after third quarter sales beat expectations.

US retailer Macy’s fell after it lowered its earnings guidance for 2008 as sales slumped at its department stores.

The price of the newspaper USA Today, which is owned by Gannett, also the owner of UK papers such as Glasgow’s the Herald, is to rise by 25 cents to $1.

On the economic front, the Commerce Department said the trade balance in August shrunk to $59.1bn, slightly worse that expected, and smaller than July's revised $61.3bn.

The Labor Department said its import price index decreased 3% in September, led by a decrease in oil prices. Concerns about economic growth have dampened demand for crude.



S&P 500 - Risers
Wachovia Corp. (WB) $5.15 +43.06%
Xl Capital Ltd. (XL) $5.43 +35.41%
Cb Richard Ellis Group (CBG) $9.80 +35.17%
Slm Corp. (SLM) $8.49 +32.66%
Lincoln Natl Corp. (LNC) $23.95 +30.80%

S&P 500 - Fallers
Morgan Stanley (MS) $9.68 -22.25%
Cbs Corp. Class B (CBS) $8.10 -20.12%
BJ Services Company (BJS) $9.55 -18.10%
Coca Cola Entrpr Inc. (CCE) $10.00 -17.56%
Viacom Inc. Class A (VIA) $17.10 -17.31%

Dow Jones I.A - Risers
Jp Morgan Chase Co (JPM) $41.10 +12.05%
Gen Electric Co (GE) $21.06 +10.78%
Citigroup Inc. (C) $14.11 +9.13%
Bank Of America Corp. (BAC) $21.10 +7.49%
General Motors (GM) $5.05 +6.09%

Dow Jones I.A - Fallers
Alcoa Inc. (AA) $11.25 -9.71%
Chevron Corp. (CVX) $58.15 -9.14%
Exxon Mobil Corp. (XOM) $61.81 -9.10%
Boeing Co (BA) $41.80 -5.89%
Intel Corp. (INTC) $14.99 -3.91%

Nasdaq 100 - Risers
Sirius Satellite Radio Inc. (SIRI) $0.45 +12.50%
Apple Inc. (AAPL) $96.49 +8.73%
Cognizant Technology Solutions Corp. (CTSH) $17.30 +7.12%
Stericycle Inc. (SRCL) $52.02 +6.53%
Ryanair Holdings Plc Adr (RYAAY) $16.99 +6.08%

Nasdaq 100 - Fallers
Steel Dynamics Inc. (STLD) $7.45 -12.15%
Liberty Global Inc. (LBTYA) $19.04 -11.03%
Joy Global Inc. (JOYG) $27.78 -10.30%
Lamar Advertising Company (LAMR) $23.23 -9.96%
Nii Holdings Inc. (NIHD) $20.49 -9.82%

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