Stock Market Wrapup Aug. 10th
Volatility has been the name of the game the past two weeks, and today, the final trading day of the week, was no different. Global stock markets fell hard overnight on still more credit market fears. At the onset of trading, all three major market averages here in the states fell significantly. However, bulls fought back in late trading to end the session slightly to the downside. The S&P managed to eek out a gain of half a point.
Continuing on the credit market fallout, central banks around the globe moved in unison to pump in liquidity to their respective banking systems. In total, over $135.7 billion was infused into systems in the past 24 hours from central banks in the U.S., Europe, Japan, and Australia. On the domestic front, the Federal Reserve orchestrated three separate infusions in the system, which by the end of the day stood at $38 billion.
Overnight, Germany's largest bank Deutsche Bank AG (NYSE: DB - News) said an investment fund that has exposure to the subprime credit area has lost -30% of its value since July. The DWS fund said assets fell from 3 billion euros to 2.3 billion euros. Elsewhere, Renaissance Institutional Equities Fund, a $29 billion quantitative hedge fund run by James Simmons, told investors that its fund has fallen -8.7% so far this month.
The nation's largest mortgage lender, Countrywide Financial (NYSE: CFC - News), said last night in a regulatory filing that "unprecedented disruptions in debt markets could continue to worsen" and that it could potentially make it harder for the company to sell loans and obtain credit. Management said in a statement that "Since the company is highly dependent on the availability of credit to finance its operations, disruptions in the debt markets or a reduction in [its] credit ratings could have an adverse impact on [its] earnings and financial condition, particularly in the short term." Shares plunged in early-morning trading, but recouped the majority of its losses. The stock finished lower by -2.8%.
On the economic data front, the Labor Department said import prices came in hotter than expected in July. Prices of goods imported to the U.S. climbed 1.5% in the prior month, led by petroleum.
On the earnings side of the market, EchoStar Communications (Nasdaq: DISH - News) said second-quarter earnings rose 33% to $224.2 million, or 50 cents per share, up from $168.8 million, or 38 cents per share, last year. Revenues rose 12% to $2.76 billion. During the quarter, the satellite operator added 170,000 net new subscribers, down from 195,000 in the second quarter last year. The company did say that the SEC invalidated all hardware claims made by Tivo (Nasdaq: TIVO - News). Its shares rose 1.2% on the session. Elsewhere, Wyeth (NYSE: WYE - News) shares fell the most in a year after the drug company said U.S. regulators rejected its new schizophrenia drug because it wasn't shown to be effective. The FDA is now requesting more information.
By the BullMarket.com Staff
Continuing on the credit market fallout, central banks around the globe moved in unison to pump in liquidity to their respective banking systems. In total, over $135.7 billion was infused into systems in the past 24 hours from central banks in the U.S., Europe, Japan, and Australia. On the domestic front, the Federal Reserve orchestrated three separate infusions in the system, which by the end of the day stood at $38 billion.
Overnight, Germany's largest bank Deutsche Bank AG (NYSE: DB - News) said an investment fund that has exposure to the subprime credit area has lost -30% of its value since July. The DWS fund said assets fell from 3 billion euros to 2.3 billion euros. Elsewhere, Renaissance Institutional Equities Fund, a $29 billion quantitative hedge fund run by James Simmons, told investors that its fund has fallen -8.7% so far this month.
The nation's largest mortgage lender, Countrywide Financial (NYSE: CFC - News), said last night in a regulatory filing that "unprecedented disruptions in debt markets could continue to worsen" and that it could potentially make it harder for the company to sell loans and obtain credit. Management said in a statement that "Since the company is highly dependent on the availability of credit to finance its operations, disruptions in the debt markets or a reduction in [its] credit ratings could have an adverse impact on [its] earnings and financial condition, particularly in the short term." Shares plunged in early-morning trading, but recouped the majority of its losses. The stock finished lower by -2.8%.
On the economic data front, the Labor Department said import prices came in hotter than expected in July. Prices of goods imported to the U.S. climbed 1.5% in the prior month, led by petroleum.
On the earnings side of the market, EchoStar Communications (Nasdaq: DISH - News) said second-quarter earnings rose 33% to $224.2 million, or 50 cents per share, up from $168.8 million, or 38 cents per share, last year. Revenues rose 12% to $2.76 billion. During the quarter, the satellite operator added 170,000 net new subscribers, down from 195,000 in the second quarter last year. The company did say that the SEC invalidated all hardware claims made by Tivo (Nasdaq: TIVO - News). Its shares rose 1.2% on the session. Elsewhere, Wyeth (NYSE: WYE - News) shares fell the most in a year after the drug company said U.S. regulators rejected its new schizophrenia drug because it wasn't shown to be effective. The FDA is now requesting more information.
By the BullMarket.com Staff
posted by Stock Administrator @ 1:37 PM
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