World Economy

Jul 12, 2008

Wall Street closing down

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The U.S. equity markets close again sitting down against a backdrop of geopolitical tensions, while oil is testing new highest historical and after the publication of quarterly results in line with General Electric.


The U.S. indices close down the meeting after testing new lowest annual, while the oil flirts with the bar $ 146 a barrel. Operators are also focused on various economic statistics released today, while the side of the news companies, General Electric was up after publishing its quarterly accounts and have announced a decrease of 11% its profits. In the banking sector, Citigroup announced the sale of its retail banking activities in Germany at Credit Mutuel for 7.7 billion dollars. Finally, InBev could raise its bid on Anheuser-Busch. On the front of the economy, the Commerce Department reported that the U.S. trade deficit contracted by 1.2% in May to 59.8 billion dollars against a widening to 62.5 billion anticipated by stakeholders. In addition, the Labor Department announced that due to rising prices of oil and natural gas import prices have, in June, increased by 2.6%, significantly higher than the 2% expected by economists. Finally, shortly after market opening, the University of Michigan released its index measuring consumer confidence, which rose to 56.6 for July against 56.4 in June and a decline to 56 expected by stakeholders .

The Dow Jones closed down 1.14% to 11 100.54 points after it tested a lower annual 10 977 points. The Nasdaq Composite fell by 0.83% to 2 239.08 points. The broader index S & P 500, meanwhile, abandons 1.11% to 1 239.52 points and touched its lowest level this year at 1 225 points.

As for values, General Electric was up 0.07% to 27.66 dollars. The diversified industrial group has published shortly before the opening, its results for the second quarter. Profits are down to 5.07 billion dollars against 5.38 billion a year earlier. Excluding exceptional items, the result brought to an action appears to 54 cents, in line with the expectations of operators. Revenues in the quarter rose by 11% to 46.89 billion dollars. Regarding the current quarter, said General Electric rely on earnings per share of about 50 to 54 cents and also confirms its forecast results for the full year 2008, namely 2.20 to $ 2.30 by title. GE announces addition, the sale of its lending activities for consumption in Japan at Shinsei Bank for 5.4 billion dollars.

In the banking sector, Citigroup abandons 0.55% to 16.19 dollars. The banking group announced the sale of its retail banking activities in Germany at Credit Mutuel for 7.7 billion dollars. Citigroup said that the operation enters a logical consolidation of the stock and it seeks to focus on activities to be strong and rapid growth.

In the retail sector, Longs Drug Stores is a decline of 1.30% to 41.15 dollars. The drugstore chain has published its figures for the month of June. The turnover was up 2.3% to $ 475 million with an increase of 1.1% of sales on a comparable basis.

In the software sector, Lawson Software abandons 0.42% to 7.14 dollars. The publisher announced for the fourth quarter, a decrease of its profits to 3.7 million against 8.1 million carried over a year earlier. Retired certain items, earnings came to 10 cents, a penny higher than forecasts of investors. Revenues, for their part, are up to 233 million dollars against 212.9 million a year ago. For the current quarter, Lawson Software disappointed investors by indicating rely on income from 195 to $ 200 million and earnings per share of 6 cents to 7 against, respectively, $ 205.4 million and 8 cents expected by title by the market.

Finally, Anheuser-Busch rose by 8.64% to 66.50 dollars. According to several sources, the American group had resumed discussions with the Belgian InBev. According to the Wall Street Journal, InBev had raised its offer 65 to $ 70 per title.

On the foreign exchange market, the dollar closed the session down in the wake of declining stock markets and rising price of crude. The European currency finished the session up, above the bar 1.59 to 1.5935 against 1.5787 the previous day. Even trend for the Japanese currency, which closed the meeting to increase returns and below 107 yen to the dollar at 106.31 against 107.04 on Thursday.

On the bond markets, rates tend slightly. The 2-year finished the session at 2.58% 2.41% against the previous day. The 5-year finish the session at 3.26% against 3.08% on Thursday. The 10-year, for its part, tended by 13 basis points to 3.93%.

Finally, oil closed the session up against a backdrop of geopolitical tensions, while traders speculate on an attack on Iran by Israel. In addition, the market is also affected by fears of a supply disruption, while Brazil faces a strike by workers of the oil industry and that Nigeria must, in turn, manage a revival of rebel activity. The price of WTI barrel on the New York Mercantile Exchange on August deadline closing up, above the bar $ 145, 145.08 dollars against 141.65 dollars the day before and after testing a new highest historical 147.27 dollars.

by erectusplus at 12:46 AM |