Wall Street sharply lower in mid-session
"The environment is very negative." Mace Blicksilver, analyst at Marblehead Asset Management, sums up the situation on Wall Street. The U.S. stock market plunges into the red in mid-session in the wake of negative fences in Europe. Around 19 hours (French time), the Dow Jones lost 2.25% at 10,037 points, prompting observers to wonder if the 10,000 points will be maintained. The loose Nasdaq 2.45% to 2137 points and the S & P 500 fell by 2.49% to 1070 points.
The Exchange NEWYORKAISES doubt due to bad news from Europe on the deficits of Greece, Spain and Portugal.
To this are added the figures disappointing employment. The U.S. Department of Labor lists because 480,000 new applications for unemployment benefits from January 24 to 30, or 1.7% over the previous week. The indicator has thus regained its level of December 12.The bad news casts doubt then that should be released tomorrow Friday monthly report on employment.
The increase more than expected to 6.2% in productivity in the fourth quarter did not offset the effect of this announcement. Just as rising industrial orders have increased twice more than expected in December, 1% from November (in data seasonally adjusted) as many as the previous month, said the Commerce Department.
The dollar rises, the export value suffers
Fears about the deficits of some European countries, coupled with the announcement of the ECB to keep rates at 1% are falling euro and strengthening dollar.The European single currency affects its lowest level since June 2008 and back below the 1.38 dollars.
In turn, values related to raw materials, energy and export sinking stock market. Alcoa lost 3.63% to $ 13, Exxon loose 2.22% to 65.12 dollars. Caterpillar (-3.05% to 51.71 dollars), General Electric (-3.54% to 16.09 dollars) and Intel (-3.25% to 19.04 dollars) fall.
Cisco is unable to support markets
Only Cisco maintains the cap: 0.39% to 23.16 dollars. The group announced that its net income for the second quarter of fiscal year staggered (late October to January 23) increased 23% over one year to 1.853 billion dollars, beyond expectations and its own forecasts . Above all, sales rose 8% over one year to 9.815 billion dollars, while three months ago the group was considering an increase of 1 to 4% only.These solid results are greeted in Stock (1.73% to 23.46 dollars) but do not support enough Nasdaq.
Bank of America 3.81% cowardly to 14.84 dollars. The Minister of Justice of the State of New York, Andrew Cuomo, the bank continues to have hidden the losses of its subsidiary Merrill Lynch and "manipulated" the authorities for a massive federal assistance.
Kellogg fell 4.15% to 52.90 dollars. The producer of cereal for breakfast reported earnings slightly down on last quarter, worse than is expected by analysts and below its own forecast.
Monster Worldwide has published quarterly results and announcing the acquisition of HotJobs to Yahoo for $ 225 million in cash. The news is very badly perceived in the marketplace.The title plunges 18.86% to 13.32 dollars.
Amazon (-2% to 116.72 U.S. dollars) was about to buy Touchco, a start-up NEWYORKAISES specializing in touch screen technology, according to U.S. daily New York Times. The objective is to further strengthen the capabilities of the tablet Kindle while Apple (-2.68% to 193.89 U.S. dollars) has launched its iPad.
Moody's announced an increase of 16% of its profit in the fourth quarter, to 101.9 million against $ 88.7 million a year earlier. The title is yet sanctioned: -5.12% to 26.66 dollars.
The title Cigna (-3.28% to 33.62 dollars). The group released on Thursday a quarterly profit above expectations at $ 330 million against a loss of 209 million a year earlier.