GE, Citigroup shows, surging oil prices rock stock market |
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Sun, 22 Jan 2006 02:05
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NEW YORK: U.S. stocks fell to their lowest in three years Friday impacted by the surging oil prices, which hit a four-month high, and poor financial performance by Citigroup Inc and General Electric Company.
The Dow Jones industrial average and Standard & Poor's 500 stock index recorded their biggest declines since 24 March 2003. The Dow was down 213.32 points, or 1.96 per cent, at 10,667.39, while the Standard & Poor's 500 lost 23.55 points, or 1.83 per cent, at 1,261.49. The Nasdaq composite index too was down 54.11 points, or 2.35 per cent, at 2,247.70.
Citigroup and GE were the latest to join companies like Intel and Yahoo, which disappointed the market. Citigroup's shares lost 4.7 per cent to $45.69 on the New York Stock Exchange. This affected the Dow in a big way. The bank, largest in the U.S., posted quarterly profit and revenue that missed analysts' estimates. GE shares fell 3.8 per cent to $33.7. This unsettled the S&P 500. While the company's fourth-quarter profit rose, its revenue fell short of expectations.
Among the 30 Dow index stocks, only McDonald's Corp. had a higher close. The shares rose 0.5 per cent to close at $35.39.
The Nasdaq index was affected by the large slide in Google shares -- 8.5 per cent to $399.46. This has been after Yahoo released its disappointing earnings Tuesday.
The increasing oil prices -- $68 a barrel -- also affected the stock markets. The oil prices are climbing up fuelled by the possible international sanctions against Iran, which may force the country to retaliate by suspending oil production, and the attacks by militants in Nigeria on oil companies engaged in exploration there.
U.S. crude oil had a gain of $1.52 to reach $68.35 a barrel, while London Brent rose $1.20 to $66.43.
The bond market had some gains, though it failed to fully capitalise on the wavering stock markets.
In the New York Mercantile Exchange, gold for February delivery scaled down $5 at $554.00 an ounce, after rallying to $568.50.
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