Wall Street is concerned about the European Debt
Posted by admin | Under life, online, people, technology, world Wednesday Apr 28, 2010Wall Street in the red. The U.S. stock market reacted badly to the degradation of the sovereign rating of the debt of Portugal. Standard & Poor's said Tuesday it has lowered the rating two levels of long-term sovereign issuer of Portugal, A-A + cons.
The rating agency also lowered by three notches note of Greece, from "BBB +" to "BB +", relegating to the category of "junk", speculative investments.
The President of the European Central Bank (ECB), Jean Claude Trichet immediately to reassure the markets by indicating that it was "no question" that Greece or any other country in the eurozone could default on its obligations. But this ad is not enough.
Around 5:40 p.m., the Dow Jones coward 1.07% to 11.1085 points, the Nasdaq was down 1.41% at 2,488 points while the S & P lost 1.49% to 1195 points.The European financial markets have tumbled at the close.
In this new addition to the opening of the hearing officers of Goldman Sachs by the Subcommittee of the Senate. Goldman Sachs (2.46% to 155.48 dollars) will continue to attract the attention of investors. CEO Lloyd Blankfein, Chief Financial Officer David Viniar and Fabrice Tourre are heard in Washington before the Subcommittee of the Senate. While the financial sector following the case closely, so the reform of financial regulation was postponed by the Senate. It remains feared by the banking sector. Concerns focus on the reform activities in derivatives that could affect the performance of the investment bank.
The bank responded in different ways. Bank of America lost 0.22%, Citigroup slumps to -2.27%, while JP Morgan Chase is 0.23%.
Confidence off again
U.S. consumer confidence improved considerably in April, reaching its highest level since September 2008 thanks to greater optimism about the job market, according to the index of employers' organization the Conference Board released Tuesday. The index stood at 57.9 in April against 52.3 in March. He had reached that level since September 2008 which corresponds to the bankruptcy of U.S. bank Lehman Brothers. Analysts polled by Reuters expected at 53.5.
For their part, the prices of residential property in the United States still slightly in February but they registered their first increase in annual rate over three years, at +0.6%.
Herz sanctioned
As for values to follow, investors will have the matter: this is indeed the highlight this week, publication of quarterly results.165 companies to sacrifice performance.
After the close of yesterday evening, several, including Texas Instruments (0.26% to 27.22 dollars), have already published. The semiconductor group has unveiled strong results. The Texan also reassured to 56-64 cents per share on a turnover of at least 3.31 billion dollars in the quarter, against respectively 53 cents and $ 3.23 billion for Bloomberg's consensus.
3M (1.96% to 88.74 dollars) announced Tuesday it posted a net profit of 930 million dollars in the first quarter, up 80%. Revenues climbed 19% in one year, 6.348 billion dollars.
U.S. Airways (1.39%) has reduced its losses in the first quarter. In the first three months of 2010, net loss was $ 82 million against a loss of 382 million a year earlier.The turnover increased by about 15% to $ 4.24 billion, above analysts' forecasts (4.18 billion).
DuPont (-0.84%) reported a net profit of 1.13 billion dollars (850 million euros) against 489 million during the corresponding period a year earlier. Its turnover rose 23.5% to 8.48 billion, against 8.06 billion expected by analysts. The chemist has also raised its forecast for 2010.
Ford (-5.81%) reached a first quarter net profit of 2.1 billion dollars (1.6 billion euros) against a net loss of $ 1.4 billion over the same period last year. Its turnover rose to 28.1 billion dollars against 24.4 billion in the first three months of 2009.
Note that the number one car rental Hertz (-2.72% 14.25 dollars) bought its competitor Dollar Thrifty (-1.07% to 42.61 dollars).It will pay 1.27 billion dollars and 1550 points will earn additional rental. A crucial task for Hertz, which remained in the red in the first quarter with a net loss of 150 million dollars.