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U.S. stock market report
1720 ET 20Jan2009
S&P shed nearly 20 pct from Election Day to Inauguration
The S&P 500 shed 19.8 percent between Election Day and today's inauguration of President Barack Obama, marking the worst lame duck period for stocks since at least 1900, according to Bespoke Investment Group.
Financials were the biggest weight on the index this year, the research firm noted, adding that only two of 65 groups on the S&P have logged gains since the Nov. 4 election.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1710 ET 20Jan2009-Investors see 'disappointing' GDP in mid
'09:Citi survey
Bucking conventional theories, more than 80 percent of investors surveyed by Citigroup expect GDP to be 'disappointing' by mid-2009 and more than half do not expect home prices to bottom by the end of the year.
The grim view of the 170 investors surveyed was fueled by growing concerns for corporate balance sheets and expectations that junk bond default rates will soar this year, wrote Citigroup analyst Tobias Levkovich. Citigroup analysts expect a 10 percent default rate this year.
'Thus, one might determine that there is not that much hope for the stock market,' he wrote.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1530 ET 20Jan2009
Wall St hits session lows on banks, profit worries
U.S. stocks tumbled to session lows on Tuesday in the biggest percentage slide since Dec 1 as mounting troubles in the banking sector underscored the steep economic challenges facing President Barack Obama.
The Dow briefly fell 4 percent, while the Nasdaq and S&P 500 declined 5 percent. The S&P index of financials plunged nearly 15 percent to its lowest level since 1995, after State Street Corp, the world's largest money manager for institutions, posted a $6.3 billion unrealized loss in its investment portfolio. For details, see
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1443 ET 20Jan2009
PNC down on National City worries
Shares of PNC Financial Services fell on Tuesday, amid fears that the regional bank might suffer investment losses or need more capital in order to absorb bad loans at National City Corp, which it recently acquired.
The $3.9 billion purchase of National City saddled PNC with billions of dollars of home equity, subprime residential construction and other loans it has been trying to work down.
Shares of PNC were down 37 percent to $23.72.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1438 ET 20Jan2009
RBC: State Street may need to raise equity soon
RBC on Tuesday said that State Street Corp may face increased pressure to raise its common equity in the near future in order to maintain its credit ratings, adding that the company may be fore to cut or suspend its dividend if unrealized losses expand in 2009.
The firm cut its price target on the money manager for institutions to $40 from $55.
Earlier on Tuesday, State Street reported billions of dollars of unrealized investment losses and a sharp drop in quarterly profits.
Shares of State Street shed 53 percent to $17.05 on Tuesday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1431 ET 20Jan2009
Barclays tumbles on capital fears
U.S.-listed shares of Barclays Plc plummeted on Tuesday, falling as investors bet the British bank may need help from taxpayers, or that more write-downs were looming.
Alex Potter, an analyst at Collins Stewart, said it was a 'credible fear' that Barclays could end up in state hands.
Shares of Barclays dropped 42 percent to $4.18 on the New York Stock Exchange. Peer company Royal Bank of Scotland plummeted 69 percent to $3.41 as investment bank losses prompted Britain to lift its stake in RBS to 70 percent.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1421 ET 20Jan2009
Citigroup slashes price target on JPMorgan
Citigroup on Tuesday slashed its price target on JPMorgan Chase by 42.5 percent, cutting it to $23 from $40. The firm also cut its 2009 earnings outlook on the bank to $1.20 a share from $2.55 a share.
The lower view, Citigroup said, came from the estimate of another $2.5 billion of write-downs on high risk assets and another $1 billion loss in private equity portfolio in the first half of 2009. The firm expects that JPMorgan will incur cumulative credit losses of about $145 billion for 2008 through 2011, and said that about 55 percent of the losses had been taken so far.
Shares of JPMorgan tumbled 15 percent to $19.46.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
U.S. stock market report
1720 ET 20Jan2009
S&P shed nearly 20 pct from Election Day to Inauguration
The S&P 500 shed 19.8 percent between Election Day and today's inauguration of President Barack Obama, marking the worst lame duck period for stocks since at least 1900, according to Bespoke Investment Group.
Financials were the biggest weight on the index this year, the research firm noted, adding that only two of 65 groups on the S&P have logged gains since the Nov. 4 election.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1710 ET 20Jan2009-Investors see 'disappointing' GDP in mid
'09:Citi survey
Bucking conventional theories, more than 80 percent of investors surveyed by Citigroup expect GDP to be 'disappointing' by mid-2009 and more than half do not expect home prices to bottom by the end of the year.
The grim view of the 170 investors surveyed was fueled by growing concerns for corporate balance sheets and expectations that junk bond default rates will soar this year, wrote Citigroup analyst Tobias Levkovich. Citigroup analysts expect a 10 percent default rate this year.
'Thus, one might determine that there is not that much hope for the stock market,' he wrote.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1530 ET 20Jan2009
Wall St hits session lows on banks, profit worries
U.S. stocks tumbled to session lows on Tuesday in the biggest percentage slide since Dec 1 as mounting troubles in the banking sector underscored the steep economic challenges facing President Barack Obama.
The Dow briefly fell 4 percent, while the Nasdaq and S&P 500 declined 5 percent. The S&P index of financials plunged nearly 15 percent to its lowest level since 1995, after State Street Corp, the world's largest money manager for institutions, posted a $6.3 billion unrealized loss in its investment portfolio. For details, see
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1443 ET 20Jan2009
PNC down on National City worries
Shares of PNC Financial Services fell on Tuesday, amid fears that the regional bank might suffer investment losses or need more capital in order to absorb bad loans at National City Corp, which it recently acquired.
The $3.9 billion purchase of National City saddled PNC with billions of dollars of home equity, subprime residential construction and other loans it has been trying to work down.
Shares of PNC were down 37 percent to $23.72.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1438 ET 20Jan2009
RBC: State Street may need to raise equity soon
RBC on Tuesday said that State Street Corp may face increased pressure to raise its common equity in the near future in order to maintain its credit ratings, adding that the company may be fore to cut or suspend its dividend if unrealized losses expand in 2009.
The firm cut its price target on the money manager for institutions to $40 from $55.
Earlier on Tuesday, State Street reported billions of dollars of unrealized investment losses and a sharp drop in quarterly profits.
Shares of State Street shed 53 percent to $17.05 on Tuesday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1431 ET 20Jan2009
Barclays tumbles on capital fears
U.S.-listed shares of Barclays Plc plummeted on Tuesday, falling as investors bet the British bank may need help from taxpayers, or that more write-downs were looming.
Alex Potter, an analyst at Collins Stewart, said it was a 'credible fear' that Barclays could end up in state hands.
Shares of Barclays dropped 42 percent to $4.18 on the New York Stock Exchange. Peer company Royal Bank of Scotland plummeted 69 percent to $3.41 as investment bank losses prompted Britain to lift its stake in RBS to 70 percent.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1421 ET 20Jan2009
Citigroup slashes price target on JPMorgan
Citigroup on Tuesday slashed its price target on JPMorgan Chase by 42.5 percent, cutting it to $23 from $40. The firm also cut its 2009 earnings outlook on the bank to $1.20 a share from $2.55 a share.
The lower view, Citigroup said, came from the estimate of another $2.5 billion of write-downs on high risk assets and another $1 billion loss in private equity portfolio in the first half of 2009. The firm expects that JPMorgan will incur cumulative credit losses of about $145 billion for 2008 through 2011, and said that about 55 percent of the losses had been taken so far.
Shares of JPMorgan tumbled 15 percent to $19.46.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.