YAHOO[BRIEFING.COM]:
Stocks fell for the fourth straight session as a sweeping selling effort
took the S&P 500 down to levels not seen since October 1996.
The downward move slowed late in the session as the S&P 500
approached the 700 level. Though unable to forcefully break below that key
level, the stock market still finished just above 700, which will likely
represent a closely watched level again tomorrow.
AIG
(AIG 0.42, +0.00) fed fears about the health of the financial system by posting
a fourth quarter loss exceeding $60 billion, which is being reported as the
largest quarterly loss in
European financial giant HSBC
(HBC 28.25, -6.55) will issue a discounted rights offering to existing
shareholders, pare its
The announcements came after Citigroup
(C 1.20, -0.30) announced late last week that it has reached a deal in which
the government will end up with a 36% stake in the company.
Financial stocks finished the session with a 6.8% loss, which was
in-line with declines seen in the materials (-6.9%), industrials (-6.7%), and
energy (-6.4%) sectors.
With 98% of the companies in the S&P 500 posting a loss,
investors pursued the relative safety of Treasuries. The benchmark 10-year Note
climbed roughly 38 ticks this session. That lowered its yield to roughly 2.89%.
Though also considered a safe-haven, gold prices fell 0.3%
from the prior session's closing price, finishing at $940.00 per ounce.
In other commodities trading, crude oil contracts closed pit
trading at $40.15 per barrel, down 11.6% from Friday's close.
Economic data continues to do little to lift investor sentiment,
though January personal income and spending were better than expected. Personal
income for January was up 0.4% after declining 0.2% the prior month. Economists
were calling for a 0.2% decline in January. Core personal consumption
expenditures (PCE) for January increased 0.1% month-over-month, in-line with
expectations. The prior reading was flat.
The February ISM Manufacturing Index inched up to 35.8 from 35.6 in
January. Economists expected a reading of 33.8 for February. Since the reading
remains below 50, the slight month-to-month improvement merely indicates the
rate of contraction has slowed.
The reports were also largely relegated as famed value investor
Warren Buffett stated he believes the economy is in shambles, and that it will
likely remain that way beyond 2009.
January pending home sales are due
tomorrow morning (10:00 AM ET). Meanwhile, Fed Chairman Bernanke testifies on
the