I have been away for the last week, I see markets are worse then when I left...
Obama signs, market withers
RTGAM
U.S. President Barack Obama signed the $787-billion (U.S.) stimulus package into law on Tuesday, unleashing money to help turn around the sputtering economy. However, skeptical investors merely shrugged, keeping major stock market indexes on their path towards those November lows that had once been seen by optimists as the lowest point for stocks during the current volatility.
The Dow Jones industrial average closed at 7552.60, down 297.81 points, or 3.8 per cent - or just over 100 points from its low on Nov. 20. The broader S&P 500 closed at 789.17, down 37.67 points, or 4.6 per cent - its lowest close since Nov. 21.
Among the 30 Dow components, Wal-Mart Stores Inc. was the only stock to end the day with gains, rising 3.7 per cent after investors applauded its upbeat forecast for the rest of the year.
Meanwhile, financials were slaughtered: Bank of America Corp. fell 12 per cent and Citigroup Inc. fell 12.3 per cent. General Electric Co. fell 5.5 per cent. And General Motors Corp., which is scheduled to report its recovery plan on Tuesday evening, fell 12.8 per cent.
In Canada, the S&P/TSX composite index closed at 8378.70, down 299.40 points, or 3.5 per cent - a steep decline that looks even nastier when you consider that the Canadian index had surging gold stocks working in its favour.
Financials and energy stocks were the big weights around the index. Financials were weak because of concerns that European banks were heavily exposed to the deteriorating economy of Eastern Europe and that a number of U.S. financial firms could be on the verge of being nationalized.
Royal Bank of Canada fell 5.5 per cent, Toronto-Dominion Bank fell 5 per cent and Manulife Financial Corp. plunged 10.6 per cent.
As for energy stocks, the decline in the price of crude oil to $34.93 a barrel, down $2.58, was the cause. Suncor Energy Inc. fell 7 per cent and Canadian Natural Resources Ltd. fell 6 per cent.
On the upside, investors used the stock market volatility as a reason to flee into gold, sending it higher to $967.50 an ounce, up $25.30. Barrick Gold Corp. rose 1.1 per cent, Kinross Gold Corp. rose 4.6 per cent and Goldcorp Inc. rose 3.4 per cent.
Copyright 2001 The Globe and Mail
RTGAM
U.S. President Barack Obama signed the $787-billion (U.S.) stimulus package into law on Tuesday, unleashing money to help turn around the sputtering economy. However, skeptical investors merely shrugged, keeping major stock market indexes on their path towards those November lows that had once been seen by optimists as the lowest point for stocks during the current volatility.
The Dow Jones industrial average closed at 7552.60, down 297.81 points, or 3.8 per cent - or just over 100 points from its low on Nov. 20. The broader S&P 500 closed at 789.17, down 37.67 points, or 4.6 per cent - its lowest close since Nov. 21.
Among the 30 Dow components, Wal-Mart Stores Inc. was the only stock to end the day with gains, rising 3.7 per cent after investors applauded its upbeat forecast for the rest of the year.
Meanwhile, financials were slaughtered: Bank of America Corp. fell 12 per cent and Citigroup Inc. fell 12.3 per cent. General Electric Co. fell 5.5 per cent. And General Motors Corp., which is scheduled to report its recovery plan on Tuesday evening, fell 12.8 per cent.
In Canada, the S&P/TSX composite index closed at 8378.70, down 299.40 points, or 3.5 per cent - a steep decline that looks even nastier when you consider that the Canadian index had surging gold stocks working in its favour.
Financials and energy stocks were the big weights around the index. Financials were weak because of concerns that European banks were heavily exposed to the deteriorating economy of Eastern Europe and that a number of U.S. financial firms could be on the verge of being nationalized.
Royal Bank of Canada fell 5.5 per cent, Toronto-Dominion Bank fell 5 per cent and Manulife Financial Corp. plunged 10.6 per cent.
As for energy stocks, the decline in the price of crude oil to $34.93 a barrel, down $2.58, was the cause. Suncor Energy Inc. fell 7 per cent and Canadian Natural Resources Ltd. fell 6 per cent.
On the upside, investors used the stock market volatility as a reason to flee into gold, sending it higher to $967.50 an ounce, up $25.30. Barrick Gold Corp. rose 1.1 per cent, Kinross Gold Corp. rose 4.6 per cent and Goldcorp Inc. rose 3.4 per cent.
Copyright 2001 The Globe and Mail
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