U.S. stock indices finished the auctions on Friday in a minus, by more than 2% and, as a result, showed the greatest three-day decline since March last year, reported Bloomberg.
reason for this has been a drop in prices of shares of financial companies because of plans by Obama, but also because of disappointing investors, accounting Google.
Nevertheless, quotations of futures on Jan. 25 showed positive dynamics: the March contracts for SP 500 was added 0,51% and the Dow Jones - 0,43%.
U.S. president promised to restrict the business of financial corporations and reduce the possibility of investment. The American taxpayer will never again be hostage to the bank, which is too big to go bankrupt assured Obama.
SP 500 Financials sub-index fell 3.3% on Friday following the decline in bank stock quotes, led by securities Bank of America Corp. (-3,7%), Morgan Stanley (-5,3%) and Goldman Sachs (-4,2%). SP 500 Financials two trading sessions fell by 6,1% - a substantial reduction not occurred since September last year.
In addition, the impact on the sector have concerns that the current head of the Federal Reserve, Ben Bernanke will not be approved for a second term.
Reassigning
Bernanke, which seemed a done deal, suddenly appeared in doubt because of the failure of two senators to support his candidacy. Previously, another 15 senators1000expressed their opposition to his reappointment. According to The Wall Street Journal, currently 31 senators declared their support for the current leader of the American Central Bank, which many consider the savior of the U.S. from the repetition of the Great Depression.
“Bernanke is seen by markets worldwide as a positive for the U.S. economy - and the uncertainty regarding his reassignment has increased sale of” shares of U.S. companies on Friday, said the chairman of the board of directors Holland Co. Michael Holland. “It added to fears about the Chinese economy and the onset of Washington”s banks”, - he said.
Google”s share price fell by 5,7% after the Internet giant”s revenue for the fourth quarter was lower than the most optimistic forecasts of analysts.
Quotations
securities Freeport-McMoRan Copper Gold, AK Steel and USSteel dropped by more than 2,7%, after Goldman Sachs analysts downgraded for the metallurgical industry to “neutral” from “attractive.”
oilfield services company Schlumberger shares fell 4.5%. The company said that net profit within the next quarter decreased by 31% - up to $ 795 million that was worse than analysts” expectations.
At the same time shares the concern General Electric went up by 4,6%. Profit from continuing operations declined in the fourth quarter by 19% - to $ 3 billion, or 28 cents per share. It proceeds on the results of October-December period amounted to $ 41.4 billion, up 10% less than the same period last year. However, analysts polled by Thomson Reuters, on average, expected earnings at 26 cents per share on revenue of $ 40.02 billion
Index Dow Jones Industrial Average on Friday fell by 216.9 points (2.1%) - to 10,172.98 points.
Value Standard Poor “s 500 went down for a day on 24.72 points (2.2%), amounting to 1,091.76 points. Thus, for the three trading sessions fall of the indicator has reached 5,1%.
Nasdaq Composite lost on the basis of trades 60,41 points (2,7%) - up to 2,205.29 points.
At the end of last week decline Dow Jones was 4,1%, SP 500 - 3,9% and the Nasdaq - 3,6%.
Since the beginning of this year, Dow Jones decline is 2.45% and the SP 500 - 2,1%. The Nasdaq lost in this year”s 2,8%.
largest U.S. banks over the last quarter of 2009 was worse than forecasts …