Stock market fails to recover its finances
2008-07-08 14:49:02 (GMT) (Caymanmama.com - Business News)New York City, New York (CaymanMama.com) — On Monday, the stock market slipped as SandP managed to get near their bear market where both SandP 500 and NASDAQ are placed while investors abandoned their attempts to recovery. The industrial average of Dow Jones saw a fall of 0.5% and that of Standard and Poor’s 500 lost an index of 0.8%. Even NASDAQ lost 0.1%. On Monday, stocks saw a downward session and the investors were unable to leave their leave their worries about the financial organizations before the start of earning report.
According to Lehman Brothers, Freddie Mac and Fannie Mae will be required to raise a total of $75 billion of capital in case the new accounting rules takes place. With the upcoming earning reports of the second quarter there are fears amongst the investors about the crisis in the credit market. According to the president of Windham Financial Services, Paul Mendelsohn said, “there’s a fear that banks will have to go to the well again and raise more capital and that they may have to sell mortgage-backed securities again. That played a tremendous role in terms of the volatility.”
With weak economy, the president of Fed bank Janet Yellen is cautious. There was a comeback of stocks post 3 major gauges that hit bear levels and saw 20% decline in comparison to its recent highs. However, this was proved unsustainable while stocks falling. Bond prices organized while bringing down the yields. In comparison to euro, dollar saw a fall but saw a gain versus yen.
The sell off of oil prices did little to remove worries of inflation and consumer spending. However, the low prices of oil led to the fall of stocks for Chevron and Exxon Mobil.
Well, with the second quarter result of Dow, investors will be readying themselves for a new session of earnings.
CaymanMama.com - Press Release Distribution Service
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