 |
|
| DJIA 8,925.41 -385.58 NASDAQ 1,715.36 -63.65 SPX 948.93 -49.08 S 3.68 -0.36 LMT 91.70 -4.07 FNM 1.02 -0.08 DJIA 8,925.41 -385.58 NASDAQ 1,715.36 -63.65 SPX 948.93 -49.08 S 3.68 -0.36 LMT 91.70 -4.07 FNM 1.02 -0.08 |
| |
|
|
|
|
Stocks fell in early trading today on gloomy economic data and earnings
reports that reflected the impact of the financial crisis on corporate
balance sheets.
The Dow Jones industrial average
was down 3.7 percent, or 342 points, shortly after 10:45 a.m. The
Standard & Poor's 500-stock index was off 4.4 percent, and
tech-heavy Nasdaq was down 2.9 percent.
An unexpectedly bleak consumer spending report from the Commerce
Department during the back-to-school shopping season reinforced fears
that the country is slipping into a recession. Consumer spending makes
up two-thirds of economic activity.
Retail sales were down 1.2 percent in September, the steepest
monthly decline in three years, according to the Commerce Department.
"In the absence of government stimulus checks, the consumer capitulated
in September," said Joseph Brusuelas, chief economist for Merk
Investments. "Moreover, this is a crystal clear signal that the holiday
season ahead is shaping up as the worst since the early 1980s."
The temporary surge in consumer spending last summer on tax rebate
checks has come to an abrupt end, Michael Woolfolk, senior currency
strategist for the Bank of New York
Mellon, said in a research note this morning. "Recessionary conditions
in [the third quarter] appear all but guaranteed," he said.
Also, wholesale prices fell 0.4 percent in September, according to
the Labor Department. But excluding food and energy, core wholesale
prices rose by 0.4 percent.
Meanwhile, three banks, J.P. Morgan Chase, Wells Fargo and State Street, reported better than expected earnings
today but still showed the damage of the financial crisis. All three
are among the nine banks the Treasury Department says will share $125
billion in taxpayer money as part of a program to stabilize the
financial system.
J.P. Morgan saw its net income tumble 84 percent to $527 million
during the third quarter, but it still managed to beat analysts'
forecasts of losses nearing $1 billion. The bank had to devalue
mortgage-related investments by $3.6 billion during the quarter.
Wells Fargo recorded net income of $1.64 billion, down nearly 25
percent compared with last year. State Street reported net income of
$477 million, up from $358 million.
Wells Fargo and J.P. Morgan were up about 1.5 percent in morning trading, while State Street fell 10 percent.
Crude oil prices continues their three-month decline today, falling 3.85 percent, or $3, to $75.60 a barrel.
