Wall Street closes with a 12-year low

The U.S. markets fell back in the old routine and lost clear: the Dow was as deep as twelve years. From billion takeover of Schering-Plow benefited only the Inherited. Technology stocks were good.
The Dow Jones fell 1.2% in the red at 6547 meters from the trade, a new twelve-year low. The S & P 500 bent around 1% a 676 meters, the lowest level since September 1996. The Nasdaq composite lost nearly 2% to 1268 points – the lowest level since October 2002.

In New York was the planned acquisition of Schering-Plow by larger rival Merck for approximately $ 41 billion main topic of conversation. “It is a business of two companies, with a declining market struggling,” said analyst Arthur Hogan. This shows that the recession itself relatively non-cyclical sectors such as the pharmaceutical industry burden. Hogan expects that in the sector to further acquisitions may occur.

Only the papers of takeover target Schering-Plow profited from the transaction and shot 14.2% upwards. Merck shares fell by 7.7% on the other hand, and drew other companies in the industry down. Sun lost Johnson & Johnson 2.9% Pfizer, and just under 1%.

An issue of major pharmaceutical companies worldwide are declining revenue as more and more of their current good products from the 1990s from the patent, and competition from cheaper Nachahmerpr├Ąparate get. This increase in health costs and a shortage of new drugs emerging in which the market could be. The world’s largest pharmaceutical company Pfizer in late January had $ 68 billion for Wyeth lying.

Under pressure, the IT industry. The shares of search engine operator Google fell by 5.7% from. The papers of Yahoo joined rivals in the minus 3%, that of the world’s largest software company Microsoft lost 0.9%.

In financial securities, the shares of Bank of America with an increase of 19.4%, the biggest winners. The bank benefited from a report by the business newspaper “Barron’s”, which the Institute is clearly better than rivals Citigroup, which recently approved by the U.S. government had to be teilverstaatlicht. Investor Warren Buffett said, Wells Fargo will be after the credit crisis better than ever ‘off what the share price of Bank by 15.8% to the top drive.

Other financial instruments after initial losses turned into gains. Brokers expect from a meeting of Federal Reserve chief Ben Bernanke and President Barack Obama more clarity on further rescue measures for the banking sector. The papers presented by JP Morgan about 3.5%, while shares of Citigroup gained 1.9%.

Dealers said, however, there was still great skepticism about a revival of the banking system. Recently, Republican leaders had argued that some ailing banks can go bankrupt rather than with other government funds to support. America should not Japan to make, in the 1990s through support for strauchelnde its banks have extended economic decline, said Richard Shelby, the leading Republicans in the banking committee of the U.S. Congress.

Energy Title benefited from rising oil prices. A barrel of U.S. light oil is more expensive by almost 3% to $ 46.80. The papers from Exxon then appealed to 0.8%. “In the future it is increasingly important, energy and material saving,” said analyst Peter Jankovskis. “To achieve this, the more companies invest in technology and the sector will benefit.” The papers of General Electric put just under 5%.

At the New York Stock Exchange moved about 1.56 billion shares the previous owners. 888 appealed to values, 2207 were after, and 77 remained unchanged. On the Nasdaq closed with sales of 2.06 billion shares in the 752 Plus, 1941 in the red and 170 unchanged.

Comments are closed.

istanbul escort