Stock Market Wrapup Aug. 9th
Stocks dropped hard from the onset of the trading session as global equity markets fell after credit woes hit foreign indexes. Losses were extended towards the closing bell, with the Dow Jones Industrials falling -387 points at the close, while the Nasdaq lost -56 points and the S&P retraced -44 points on the session. Treasuries rose sharply on the news, with the yield on the 10-year note ending at 4.79%. Over in the energy complex, natural gas was the only gainer, rising 36 cents to $6.58.
Company news from foreign markets hit home today, as France's largest bank, BNP Paribas SA, halted withdrawals from three investment funds because it could not fairly value its holdings after the U.S. subprime mortgage market roiled credit markets. As of August 7th, the company said those funds had assets of $2.2 billion, but those values declined -20% in the past two weeks. The news prompted the European Central Bank (ECB) to infuse 95 billion euros into the overnight lending market. On the home front, a $1.8 billion quantitative hedge fund managed by Highbridge Capital Management, a unit of JP Morgan Chase (NYSE: JPM - News), has lost -5.3% so far this month as credit markets continue to feel the heat.
On the earnings front, one of the world's largest insurers American International Group (NYSE: AIG - News) reported net income of $4.28 billion, or $1.64 a share, up from $3.19 billion, or $1.21 last year. Excluding hedging activities and other investment gains and losses, it said it earned $4.63 billion, or $1.77 a share, easily topping estimates of $1.61 a share. Revenues climbed 16% to $31.15 billion. The insurer cited strong performance in its general insurance business as well as life and retirement services. Strong results could do little for shareholders on this day, as shares fell -3.3%. Subscribers can read our analysis of American International Group's earnings in today's issue.
Elsewhere, media giant News Corp (NYSE: NWS - News), fresh off its acquisition of Dow Jones (NYSE: DJ - News), reported a 4% rise in fiscal fourth-quarter earnings. For the quarter just ended, the company earned $890 million compared to last year's $852 million. Excluding discontinued operations in the year-ago period, profits rose 22% on a per share basis to 28 cents per share, up from 23 cents in the same period a year ago. Revenues rose 9% to $7.37 billion. The company cited higher cable networks results for the increased profits.
In other news, home improvement retailer Home Depot (NYSE: HD - News) shares fell -5.3% after the company said it may have to reduce its price tag and restructure its planned $10.3 billion sale of its contractor supply business to a group of private equity companies. It also said it is scaling back its planned stock repurchase program due to the possible reduction in price for the unit.
Food giant Campbell Soup (NYSE: CPB - News), meanwhile, has hired Centerview Partners to help it explore strategic alternatives for its Godiva Choclatier business. Shares fell -4.6% on the session.
By the BullMarket.com Staff
Company news from foreign markets hit home today, as France's largest bank, BNP Paribas SA, halted withdrawals from three investment funds because it could not fairly value its holdings after the U.S. subprime mortgage market roiled credit markets. As of August 7th, the company said those funds had assets of $2.2 billion, but those values declined -20% in the past two weeks. The news prompted the European Central Bank (ECB) to infuse 95 billion euros into the overnight lending market. On the home front, a $1.8 billion quantitative hedge fund managed by Highbridge Capital Management, a unit of JP Morgan Chase (NYSE: JPM - News), has lost -5.3% so far this month as credit markets continue to feel the heat.
On the earnings front, one of the world's largest insurers American International Group (NYSE: AIG - News) reported net income of $4.28 billion, or $1.64 a share, up from $3.19 billion, or $1.21 last year. Excluding hedging activities and other investment gains and losses, it said it earned $4.63 billion, or $1.77 a share, easily topping estimates of $1.61 a share. Revenues climbed 16% to $31.15 billion. The insurer cited strong performance in its general insurance business as well as life and retirement services. Strong results could do little for shareholders on this day, as shares fell -3.3%. Subscribers can read our analysis of American International Group's earnings in today's issue.
Elsewhere, media giant News Corp (NYSE: NWS - News), fresh off its acquisition of Dow Jones (NYSE: DJ - News), reported a 4% rise in fiscal fourth-quarter earnings. For the quarter just ended, the company earned $890 million compared to last year's $852 million. Excluding discontinued operations in the year-ago period, profits rose 22% on a per share basis to 28 cents per share, up from 23 cents in the same period a year ago. Revenues rose 9% to $7.37 billion. The company cited higher cable networks results for the increased profits.
In other news, home improvement retailer Home Depot (NYSE: HD - News) shares fell -5.3% after the company said it may have to reduce its price tag and restructure its planned $10.3 billion sale of its contractor supply business to a group of private equity companies. It also said it is scaling back its planned stock repurchase program due to the possible reduction in price for the unit.
Food giant Campbell Soup (NYSE: CPB - News), meanwhile, has hired Centerview Partners to help it explore strategic alternatives for its Godiva Choclatier business. Shares fell -4.6% on the session.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:33 PM
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