Investment of Mine

Closing bell of the stock market:

Nikkei -113.79 -1.30% 8,695.51
Topix -14.13 -1.60% 875.23
FTSE    -76.99    -1.81%    4,169.70
DAX    -140.78    -2.96%    4,620.80
CAC    -102.45    -3.07%    3,233.96
Dow    -410.67    -4.72%    8,283.29
NASDAQ    -81.69    -5.17%    1,499.21
S&P    -46.59    -5.18%    852.36
10yr Note    -0.9000    -0.240%    3.665%
NYMEX Crude Oil    -3.23    -5.44%    56.10
Gold    -14.50    -1.98%    718.30
Japanese stock indices have suffered losses the second day running after the fall of oil prices to 20-month minimum and the reduction of prices on other basic materials became the evidence of deepening of the world economy recession. The stocks of the Inpex Corp. – Japanese largest electric company – fell by 5.4% after the reduction of the profit forecast due to the fall of oil prices. The stocks of the Mitsubishi Corp. – more than a half of whose profit is generated by the sales of basic materials – fell by 8.1% after the fall of prices on copper to the 3-year minimum. The stocks of Sumitomo Rubber Industries Ltd. Grew by 4.8% after the oil prices have fallen below $60 level, which positively influences the expenses of the Company. The stocks of the mobile operator Softbank Corp. skyrocketed by 16% after Chinese departments of the Alibaba.com Ltd. Company has announced about a sudden growth of the quarterly revenue.

The reduction of prices on raw materials triggered the stocks sales of the representatives of the extractive and oil industries.  Swiss Life Holding’s stocks collapsed by 20% after the Company has reconsidered (with reduction) its profit forecast. The stocks of the BHP Billiton Ltd. – the world largest mining company – fell by 6.9% because of the reduction of copper prices and BG Group Plc. lost 5.4% after the oil of the brent mark has reduced to $57 per barrel.
ArcelorMittal fell by 9.6%. Citigroup Inc. Recommended selling of the stocks of the world largest steel producer due to the Company’s debts and the fall of the world demand for steel.
Credit Suisse Group AG and Deutsche Bank AG became the sales leaders in the banking sector losing at least 7% after the Secretary of the US Treasury Henry Paulson has announced about the closing of the purchasing of the troubled assets secured by the mortgages.

The US largest retail net of home electronics Best Buy worsened the forecast of profit and income remarking the preserving weakness of the consumers’ activity on the eve of the holidays season. The company reduced its profit forecast per stock according to the results of financial year 2009 (ends in February) to $2.30-$2.90 in comparison with the previous mark $3.25-$3.40 and experts’ expectations $3.02. Last year the Best Buy’s profit made up $3.18 per stock. The Best Buy remarks that according to the yearly results the sales may reduce by 1% -8%. In the previous forecast there has been observed the rate growth by 2%-3%. Operator of the department stores net Macy’s announced about quarterly losses and the fall of sales by 7%. This week their data will present Wal-Mart (Thursday) and JC Penney (Friday). By the end of the session the Nasdaq has renewed session minimums while the Dow and S&P 500 approached their today’s worth rates.
The representatives of the financial and technological sectors were under serious pressure. In the financial sector one should specially stress the sales in the segment of industrial (-31.6%) and retail REIT (-10.1%) investment funds in real estate. Among the representatives of the technological sector the largest losses were suffered by the group of the entertainment software producers (-10.3%) and the segment of electronic branch of industry services (-6.2%).
Google became one of the sales leaders as a component of the Nasdaq. The stocks of the search engine have reached the third-year minimum. Several brokers’ companies reduced the Google’s profit forecasts at once due to the apprehensions that global financial crisis will negatively influence the profit of online advertisement sales.

Among not numerous leaders one should point out General Motors and Ford due to the rumors about the possible adoption of the law, according to which the automobile industry of the USA will get credits in the amount of $25 bln. By the end of the year the losses of Dow, Nasdaq and S&P 500 have already made up 38.8%, 44.3% and 43.1%, respectively. Dow, Nasdaq and  S&P 500 are by 40.7%, 70.3%, and 44.9% lower their historic maximums.

This entry was posted on Thursday, November 13th, 2008 at 7:39 am and is filed under Finance Review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.